I've always argued that this country has benefited immensely from the fact that we draw people from all over the world.
Alan GreenspanRead
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.
Interpretation
What this quote means
Finance relies on leverage to generate profits, which also increases the risk of failure through debt.
In this quote, Alan Greenspan emphasizes the dual nature of finance, where profitability often hinges on taking on significant leverage. This leverage, while potentially leading to substantial gains, also carries the inherent risk of debt-related failures and repercussions that can spread across the financial system, illustrating the precarious balance between risk and reward in financial operations.
Themes
FinanceLeverageDebtRiskProfitabilityContagion
In practice
Example use cases
This quote serves as a warning when discussing financial strategies at a business conference.
More from Alan Greenspan
All quotes βThere'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
In other words, the percentage change in book value in any given year is likely to be reasonably close to that year's change in intrinsic value.
Warren BuffettRead
It isn't as important to buy as cheap as possible as it is to buy at the right time.
Jesse LivermoreRead
Credit worthiness is like virginity, it can be preserved but not restored very easily, so it is crazy to play around with it.
Warren BuffettRead
If you're trading individual securities, you're almost certainly making a mistake. Because most professional managers can't outperform their benchmarks, and there's little reason to think that individuals can.
Richard ThalerRead
Short term volatility is greatest at turning points and diminishes as a trend becomes established
George SorosRead
The miracle of compounding returns has been overwhelmed by the tyranny of compounding costs.
John C. BogleRead