Market financed withdrawals of home equity in recent years.
ALAN GREENSPANTo 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.
More Alan Greenspan Quotes
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Fiat money in extremis is accepted by nobody. Gold is always accepted.
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History has not dealt kindly with the aftermath of protracted periods of low risk premiums.
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How do we know when irrational exuberance has unduly escalated asset values?
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Unfortunately, Senator, nobody knows where the next innovative idea is coming from.
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…our market system depends critically on trust-trust in the word of our colleagues and trust in the word of those with whom we do business.
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The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit.
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The number one problem in today’s generation and economy is the lack of financial literacy.
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Gold still represents the ultimate form of payment in the world.
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Productivity is notoriously difficult to predict.
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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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It’s hard to overemphasize how important Ford’s deregulation was. True, most of the benefits took years to unfold-rail freight rates, for example hardly budged at first.
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We may be in a rapidly evolving international financial system with all the bells and whistles of the so-called new economy. But the old-economy rules of prudence are as formidable as ever. We violate them at our own peril.
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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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This is the reason that history has not dealt kindly with the aftermath of protracted periods of low risk premiums.
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So there is no reason to suspect that the actual process of boosting rates would be any different.
ALAN GREENSPAN