There is no evidence that the business cycle has been repealed.
ALAN GREENSPANThere’s an interesting question here because if the gold price broke in that context, the thermometer would not be just a measuring tool. It would basically affect the underlying psychology.
More Alan Greenspan Quotes
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Unfortunately, Senator, nobody knows where the next innovative idea is coming from.
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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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Recent episodes in which Fed officials hinted at a shift toward higher interest rates have unleashed significant volatility in markets.
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If we are to remain preeminent in transforming knowledge into economic value, America’s system of higher education must remain the world’s leader in generating scientific and technological breakthrough, and in meeting the challenge to educate workers.
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The companies could hire the educated workers they need. And those workers would compete with high-income people, driving more income equality.
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Clearly, sustained low inflation implies less uncertainty about the future, and lower risk premiums imply higher prices of stocks and other earning assets.
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Well, you probably will always believe there should be laws against fraud, and I don’t think there is any need for a law against fraud.
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The current financial crisis in the US is likely to be judged in retrospect as the most wrenching since the end of the Second World War.
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There are no easy choices. Easy choices are long gone.
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I made a mistake in presuming that the self-interests of organisations, specifically banks and others, were such that they were best capable of protecting their own shareholders and their equity in the firms.
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But rules cannot substitute for character.
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This is the reason that history has not dealt kindly with the aftermath of protracted periods of low risk premiums.
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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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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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The free lunch has still to be invented.
ALAN GREENSPAN