Without calling the overall national issue a bubble, it’s pretty clear that it’s an unsustainable underlying pattern.
ALAN GREENSPANWhatever you tax you get less of.
More Alan Greenspan Quotes
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Improvements in lending practices driven by information technology have enabled lenders to reach out to households with previously unrecognized borrowing capacities.
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I came to a stark realization: chronic surpluses could be almost as destabilizing as chronic deficits.
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Then fear hits, and it comes down very sharply. When I started to look at that.
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The economy is turning, and credit comes in with a lag, .. To the extent that a number of small firms are finding it difficult to get the credit they need at a price they can afford, that’s likely to change for the better.
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It seems superfluous to constrain trading in some of the newer derivatives and other innovative financial contracts of the past decade.
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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?
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We need, in effect, to make the phantom ‘lock-boxes’ around the trust fund real.
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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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We will have more crises and none of them will look like this because no two crises have anything in common except human nature.
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You can’t have the capitalist system if an increasing number of people think it is unjust.
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In general, corruption tends to exist whenever governments have favors to extend, or something to sell.
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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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I cannot conceive of a politically feasible solution to this problem which will overdo cutting the deficit, where overdoing means harming the economy. It might be technically possible, but it is not realistic.
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Fear and euphoria are dominant forces, and fear is many multiples the size of euphoria. Bubbles go up very slowly as euphoria builds.
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If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard.
ALAN GREENSPAN