In an economy that already has lost some momentum, one must remain alert to the possibility that greater caution and weakening asset values in financial markets could signal or precipitate an excessive softening in household and business spending.
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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If we allow terrorism to undermine our freedom of action, we could reverse at least part of the palpable gains achieved by postwar globalization. It is incumbent upon us not to allow that to happen.
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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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Gold stands in the way of this insidious process. It stands as a protector of property rights.
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The arts develop skills and habits of mind that are important for workers in the new economy of ideas.
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Productivity is notoriously difficult to predict.
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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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Any onset of increased investor caution elevates risk premiums and, as a consequence, lowers asset values and promotes the liquidation of the debt that supported higher asset prices.
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If prices go down, we will have problems – problems in the sense of spillover to other areas.
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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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The worst have failed; investors no longer fund them and are not likely to in the future.
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They then need to reach a judgment about the probabilities, costs, and benefits of the various possible outcomes under alternative choices for policy.
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In the absence of the gold standard, there is no way to protect savings from confiscation through inflation.
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The number one problem in today’s generation and economy is the lack of financial literacy.
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Any informed borrower is simply less vulnerable to fraud and abuse.
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If I say something which you understand fully in this regard, I probably made a mistake.
ALAN GREENSPAN