We may be in a rapidly evolving international financial system with all the bells and whistles of the so-called new economy. But the old-economy rules of prudence are as formidable as ever. We violate them at our own peril.
ALAN GREENSPANI’ve been in and out of Wall Street since 1949, and I’ve never seen the type of animosity between government and Wall Street. And I’m not sure where it comes from, but I suspect it’s got to do with a general schism in this society which is really becoming ever more destructive.
More Alan Greenspan Quotes
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Excessive optimism shows the seeds of its own reversal in the form of imbalances that tend to grow over time.
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Since I’ve become a central banker, I’ve learned to mumble with great incoherence.
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If you think you understand what I am saying you do not understand what I am saying.
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It’s not for anything other than an escape from what is perceived to be a fiat money system, paper money, that seems to be deteriorating.
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Yet deregulation set the stage for an enormous wave of creative destruction in the 1980s.
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I have found no greater satisfaction than achieving success through honest dealing and strict adherence to the view that, for you to gain, those you deal with should gain as well.
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History has not dealt kindly with the aftermath of protracted periods of low risk premiums.
ALAN GREENSPAN -
I was raising the question on the side with Governor Mullins of what would happen if the Treasury sold a little gold in this market.
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If I seem unduly clear to you, you must have misunderstood what I said.
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Capitalism is based on self-interest and self-esteem; it holds integrity and trustworthiness as cardinal virtues and makes them pay off in the marketplace, thus demanding that men survive by means of virtue, not vices.
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You can’t have the capitalist system if an increasing number of people think it is unjust.
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The free lunch has still to be invented.
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If I say something which you understand fully in this regard, I probably made a mistake.
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No one has ever eliminated any of that stuff.
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There is nothing to guarantee the superior judgment, knowledge, and integrity of an inspector or a bureaucrat-and the deadly consequences of entrusting him with arbitrary power are obvious.
ALAN GREENSPAN