There is nothing to guarantee the superior judgment, knowledge, and integrity of an inspector or a bureaucrat-and the deadly consequences of entrusting him with arbitrary power are obvious.
ALAN GREENSPANSignificantly opening up immigration to skilled workers solves two problems.
More Alan Greenspan Quotes
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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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It has been my experience that competency in mathematics, both in numerical manipulations and in understanding its conceptual foundations.
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I must say, I never expected to see the day where I would be talking about anything other than reducing the debt, I’m running into the tyranny of zero, which is where you can’t reduce (the debt) any more
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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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How do we know when irrational exuberance has unduly escalated asset values?
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Market financed withdrawals of home equity in recent years.
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I guess I should warn you, if I turn out to be particularly clear, you’ve probably misunderstood what I’ve said.
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It is this superlatively moral system that the welfare statists propose to improve upon by means of preventative law, snooping bureaucrats, and the chronic goad of fear.
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Such caution seems especially warranted with regard to the sharp rise in equity prices during the past two years. These gains have obviously raised questions of sustainability.
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History has not dealt kindly with the aftermath of protracted periods of low risk premiums.
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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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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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Regulation – which is based on force and fear – undermines the moral base of business dealings. It becomes cheaper to bribe a building inspector than to meet his standards of construction. Protection of the consumer by regulation is thus illusory.
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Credit-default swaps, I think, have serious problems associated with them.
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Since I’ve become a central banker, I’ve learned to mumble with great incoherence.
ALAN GREENSPAN