Given our inevitably incomplete knowledge about key structural aspects of our ever-changing economy and the sometimes asymmetric costs or benefits of particular outcomes, a central bank.
ALAN GREENSPANRevolutions are something you see only in retrospect.
More Alan Greenspan Quotes
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A decline in the national housing price level would need to be substantial to trigger a significant rise in foreclosures, because the vast majority of homeowners have built up substantial equity in their homes despite large mortgage.
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This is the reason that history has not dealt kindly with the aftermath of protracted periods of low risk premiums.
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Any informed borrower is simply less vulnerable to fraud and abuse.
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Excessive optimism sows the seeds of its own reversal.
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Protectionism will do little to create jobs and if foreigners retaliate, we will surely lose jobs.
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Clearly, sustained low inflation implies less uncertainty about the future, and lower risk premiums imply higher prices of stocks and other earning assets.
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Productivity is notoriously difficult to predict.
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I’m a plain soap kind of guy.
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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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You can’t have the capitalist system if an increasing number of people think it is unjust.
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I guess I should warn you, if I turn out to be particularly clear, you’ve probably misunderstood what I’ve said.
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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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Some succeed for a time. But while there may occasionally be mis-configurations among market prices that allow abnormal returns, they do not persist.
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No one has ever eliminated any of that stuff.
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I’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.
ALAN GREENSPAN