I've always argued that this country has benefited immensely from the fact that we draw people from all over the world.
Alan GreenspanRead
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?
Interpretation
What this quote means
The quote questions how to recognize when market enthusiasm has inflated asset prices, warning of potential downturns.
Alan Greenspan's quote addresses the challenge of identifying when investment excitement leads to overvalued assets. He reflects on Japan's economic circumstances over the past decade, highlighting the difficulty in predicting when such exuberance might turn into significant market corrections and the implications of such events on the economy.
Themes
ExuberanceAsset ValuesMarket CorrectionInvestmentsEconomy
In practice
Example use cases
Using this quote in a discussion about market volatility during a financial seminar.
More from Alan Greenspan
All quotes →There's no other job in public life that is like chairman of the Fed.
Alan GreenspanRead
Since 1948 I have spent every single day thinking how the economic and political worlds have changed.
Alan GreenspanRead
Most high-income people in our country do not realize that their incomes are being subsidized by their protection from competition from highly skilled people who are prevented from immigrating to the United States. But we need such skills in order to staff our productive economy, so that the standard of living for Americans as a whole can grow.
Alan GreenspanRead
I 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.
Alan GreenspanRead
Every economy exists, no matter what the level of democracy, has elements of crony capitalism. It's - given human nature and given the democratic structures, which we all, I assume, adhere to, that is an inevitable consequence.
Alan GreenspanRead
Similar quotes
Spend less than you make; always be saving something. Put it into a tax-deferred account. Over time, it will begin to amount to something. This is such a no-brainer.
Charlie MungerRead
The [stock] market,like the Lord, helps those who help themselves. But, unlike the Lord, the market does not forgive those who know not what they do.
Warren BuffettRead
Banks are run by executives, and executives protect themselves, and that does not always mean that banks are going to behave rationally.
Daniel KahnemanRead
At long as a stock is acting right, and the market is right, do not be in a hurry to take profits. One should never permit speculative ventures to run into investments.
Jesse Lauriston LivermoreRead
You've got to tell your money what to do or it will leave.
Dave RamseyRead
There is always something to worry about. Avoid weekend thinking and ignoring the latest dire predictions of the newscasters. Sell a stock because the company's fundamentals deteriorate, not because the sky is falling.
Peter LynchRead