The very nature of finance is that it cannot be profitable unless it is significantly leveraged... and as long as there is debt, there can be failure and contagion. Alan Greenspan More Quotes by Alan Greenspan More Quotes From Alan Greenspan People dont realize that we cannot forecast the future. What we can do is have probabilities of what causes what, but thats as far as we go. And Ive had a very successful career as a forecaster, starting in 1948 forward. The number of mistakes I have made are just awesome. There is no number large enough to account for that. Alan Greenspan careers successful mistake If all currencies are moving up or down together, the question is: relative to what? Gold is the canary in the coal mine. It signals problems with respect to currency markets. Central banks should pay attention to it. Alan Greenspan gold together moving 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. Alan Greenspan protection regulation moral No matter how skillful the trading scheme, over the long haul, abnormal returns are sustained only through abnormal exposure to risk. Alan Greenspan abnormal risk long 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. Alan Greenspan law believe thinking Fear and euphoria are dominant forces, and fear is many multiples the size of euphoria. Bubbles go up very slowly as euphoria builds. Then fear hits, and it comes down very sharply. When I started to look at that, I was sort of intellectually shocked. Contagion is the critical phenomenon which causes the thing to fall apart. Alan Greenspan causes looks fall You can't have the capitalist system if an increasing number of people think it is unjust. Alan Greenspan numbers people thinking We as central bankers need not be concerned if a collapsing financial asset bubble does not threaten to impair the real economy, its production, jobs and price stability. Alan Greenspan real jobs bankers Cash is available and we should use that in larger amounts, as is necessary, to solve the problems of the stress of this. Alan Greenspan cash stress use Without calling the overall national issue a bubble, it's pretty clear that it's an unsustainable underlying pattern. Alan Greenspan patterns issues calling While local economies may experience significant price imbalances, a national severe price distortion seems most unlikely in the United States, given its size and diversity. Alan Greenspan imbalance size diversity History demonstrates that participants in financial markets are susceptible to waves of optimism. Excessive optimism shows the seeds of its own reversal in the form of imbalances that tend to grow over time. Alan Greenspan imbalance optimism financial 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 Greenspan arbitrary guarantees integrity There is no evidence that the business cycle has been repealed. Alan Greenspan cycles evidence has-beens 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. Alan Greenspan cutting might mean I love facts and figures. It's like following a detective story, piecing together what's going on in the economy. Alan Greenspan detectives stories together I love to play tennis and golf, listen to music, watch baseball and root for the Redskins. Alan Greenspan baseball play golf I'm a better economist than I was a sax player. Alan Greenspan economist player Now, I only play very occasionally, and in fact, more piano than clarinet or sax. Alan Greenspan piano play facts The tub helps me relax, and it's a great place to read. Alan Greenspan tubs relax helping
