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.
ALAN GREENSPANI don’t know where the stock market is going, but I will say this, that if it continues higher, this will do more to stimulate the economy than anything we’ve been talking about today or anything anybody else was talking about.
More Alan Greenspan Quotes
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What an ideology is is a conceptual framework with the way people deal with reality.
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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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Corruption, embezzlement, fraud, these are all characteristics which exist everywhere.
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If you get beyond the political rhetoric [and assembled a group to solve Social Security] it would take them 15 minutes. It would take them 15 minutes only because 10 minutes was used for pleasantries.
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I believe that the general growth in large [financial] institutions have occurred in the context of an underlying structure of markets in which many of the larger risks are dramatically — I should say, fully — hedged.
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Indeed, better risk management may be the only truly necessary element of success in banking.
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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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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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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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And the percentage changes in wage rates would be the same for all job grades.
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Unfortunately, Senator, nobody knows where the next innovative idea is coming from.
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No matter how skillful the trading scheme, over the long haul, abnormal returns are sustained only through abnormal exposure to risk.
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Anyone willing to do what is required to become president of the United States is thereby barred from taking that office. I’m only half joking
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Productivity is notoriously difficult to predict.
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We cannot rule out a situation in which a preemptive policy tightening becomes necessary.
ALAN GREENSPAN






