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 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.
More Alan Greenspan Quotes
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And whatever their publicized angst over Saddam Hussein’s ‘weapons of mass destruction.
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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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This is the reason that history has not dealt kindly with the aftermath of protracted periods of low risk premiums.
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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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Amateurs want to be right. Professionals want to make money.
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The process of innovation is, of course, never ending.
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To succeed, you will soon learn, as I did, the importance of a solid foundation in the basics of education – literacy, both verbal and numerical, and communication skills.
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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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Whatever you tax you get less of.
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It is decidedly not true that “nice guys finish last,” as that highly original American baseball philosopher, Leo Durocher, was alleged to have said.
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I was a good amateur but only an average professional. I soon realized that there was a limit to how far I could rise in the music business, so I left the band and enrolled at New York University.
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Significantly opening up immigration to skilled workers solves two problems.
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Productivity is notoriously difficult to predict.
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Many of those who purchased their residence more than a year ago have equity buffers in their homes adequate to withstand any price decline other than a very deep one.
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In an economy that already has lost some momentum, one must remain alert to the possibility that greater caution and weakening asset values in financial markets could signal or precipitate an excessive softening in household and business spending.
ALAN GREENSPAN