It signals problems with respect to currency markets. Central banks should pay attention to it.
ALAN GREENSPANRegulation of derivatives transactions that are privately negotiated by professionals is unnecessary.
More Alan Greenspan Quotes
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The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit.
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No matter how skillful the trading scheme, over the long haul, abnormal returns are sustained only through abnormal exposure to risk.
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So there is no reason to suspect that the actual process of boosting rates would be any different.
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The very nature of finance is that it cannot be profitable unless it is significantly leveraged… and as long as there is debt, there can be failure and contagion.
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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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Stripped of its academic jargon, the welfare state is nothing more than a mechanism by which governments confiscate the wealth of the productive members of a society to support a wide variety of welfare schemes.
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Cash is available and we should use that in larger amounts, as is necessary, to solve the problems of the stress of this.
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The number one problem in today’s generation and economy is the lack of financial literacy.
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We can see that in the inverse relationship exhibited by price/earnings ratios and the rate of inflation in the past.
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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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Indeed, better risk management may be the only truly necessary element of success in banking.
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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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This is the reason that history has not dealt kindly with the aftermath of protracted periods of low risk premiums.
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If we are dealing with psychology, then the thermometers one uses to measure it have an effect.
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Significantly opening up immigration to skilled workers solves two problems.
ALAN GREENSPAN