Fear and euphoria are dominant forces, and fear is many multiples the size of euphoria. Bubbles go up very slowly as euphoria builds.
ALAN GREENSPANRegulators have not been able to achieve the level of future clarity required to act pre-emptively.
More Alan Greenspan Quotes
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Recent episodes in which Fed officials hinted at a shift toward higher interest rates have unleashed significant volatility in markets.
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But material success is possible in this world and far more satisfying when it comes without exploiting others.
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I was a good amateur but only an average professional. I soon realized that there was a limit to how far I could rise in the music business, so I left the band and enrolled at New York University.
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We are in the midst of a once-in-a-century credit tsunami. Central banks and governments are being required to take unprecedented measures.
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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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Without calling the overall national issue a bubble, it’s pretty clear that it’s an unsustainable underlying pattern.
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People dont realize that we cannot forecast the future. What we can do is have probabilities of what causes what, but thats as far as we go. And Ive had a very successful career as a forecaster, starting in 1948 forward.
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The gut-feel of the 55-year old trader is more important than the mathematical elegance of the 25-year old genius.
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Senator, if I seem clear to you, you must have misunderstood me’.
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But rules cannot substitute for character.
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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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Everyone has one. You have to, to exist you need an ideology. The question is whether it is accurate or not.
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Unfortunately, Senator, nobody knows where the next innovative idea is coming from.
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The probability of ten consecutive heads is 0.1 percent; thus, when you have millions of coin tossers, or investors, in the end there will be thousands of very successful practitioners of coin tossing, or stock picking.
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If you think you understand what I am saying you do not understand what I am saying.
ALAN GREENSPAN






