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 GREENSPANAny informed borrower is simply less vulnerable to fraud and abuse.
More Alan Greenspan Quotes
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The guiding purpose of the government regulator is to prevent rather than to create something.
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Since I’ve become a central banker, I’ve learned to mumble with great incoherence.
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Derivatives have permitted the unbundling of financial risks.
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It signals problems with respect to currency markets. Central banks should pay attention to it.
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I have one other issue I’d like to throw on the table. I hesitate to do it, but let me tell you some of the issues that are involved here.
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The United States can pay any debt it has because we can always print money to do that. So there is zero probability of default.
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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.
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Now, I only play very occasionally, and in fact, more piano than clarinet or sax.
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The process of innovation is, of course, never ending.
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I’m a better economist than I was a sax player.
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Many of those who purchased their residence more than a year ago have equity buffers in their homes adequate to withstand any price decline other than a very deep one.
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The problem is not lack of regulation but unrealistic expectations. What we confront in reality is uncertainty, some of it frighteningly so…
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There are no easy choices. Easy choices are long gone.
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If I say something which you understand fully in this regard, I probably made a mistake.
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We can guarantee cash benefits as far out and at whatever size you like, but we cannot guarantee their purchasing power.
ALAN GREENSPAN