History demonstrates that participants in financial markets are susceptible to waves of optimism.
ALAN GREENSPANBut how do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions as they have in Japan over the past decade?
More Alan Greenspan Quotes
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I love to play tennis and golf, listen to music, watch baseball and root for the Redskins.
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Credit-default swaps, I think, have serious problems associated with them.
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[Republicans] swapped principle for power. They ended up with neither. They deserved to lose.
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Derivatives have permitted the unbundling of financial risks.
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Yet deregulation set the stage for an enormous wave of creative destruction in the 1980s.
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American and British authorities were also concerned about violence in an area that harbors a resource indispensable for the functioning of the word economy.
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Regulators have not been able to achieve the level of future clarity required to act pre-emptively.
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And she always has so much fun doing it. We make a good team.
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How do we know when irrational exuberance has unduly escalated asset values?
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It keeps interest rates lower than they otherwise would be and frees savings to finance increases in the capital stock, thereby boosting productivity and real incomes.
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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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In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value.
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I have long argued that paying down the national debt is beneficial for the economy.
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The need for values is inbred. Their content is not.
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I was a fairly good amateur musician, and I was an average professional. But the one thing I saw was that the big band business was fading.
ALAN GREENSPAN