But 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?
ALAN GREENSPANI guess I should warn you, if I turn out to be particularly clear, you’ve probably misunderstood what I’ve said.
More Alan Greenspan Quotes
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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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Then fear hits, and it comes down very sharply. When I started to look at that.
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I didn’t believe in absolutes, moral or otherwise. If I couldn’t prove a proposition with facts and figures, it was without merit.
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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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Productivity is notoriously difficult to predict.
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Those of us who have looked to the self-interest of lending institutions to protect shareholders’ equity are in a state of shocked disbelief.
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As long as we issue fiat currency, I see no alternative to a legal tender law.
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The process of innovation is, of course, never ending.
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It is regrettably the way human nature functions, whether we like it or not. What successful economies do is keep it to a minimum.
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What an ideology is is a conceptual framework with the way people deal with reality.
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I am saddened that it is politically inconvenient to acknowledge what everyone knows: the Iraq war is largely about oil.
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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.
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I’ve always argued that this country has benefited immensely from the fact that we draw people from all over the world.
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Greenspan, who knew so much more than most, knew far less than most supposed.
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In general, corruption tends to exist whenever governments have favors to extend, or something to sell.
ALAN GREENSPAN