A Quote by Alan Greenspan

How do we know when irrational exuberance has unduly escalated asset values?

Alan Greenspan

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Asset Exuberance How Irrational Know Values

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Alan Greenspan
American - Economist
Born: March 6, 1926

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?

Alan Greenspan

Clearly, sustained low inflation implies less uncertainty about the future, and lower risk premiums imply higher prices of stocks and other earning assets. We can see that in the inverse relationship exhibited by price/earnings ratios and the rate of inflation in the past. 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?

Alan Greenspan

In the '90s it was irrational exuberance. Now it may be irrational doom and gloom.

Robert Reich

What we need to understand is, one, that there are market failures; and two, that there are things like asset bubbles and irrational exuberance. There are periods of booms, bubbles, and manias. These things, if left to themselves, can lead to crashes, to busts, to panics.

Nouriel Roubini

I can be a tool of torture or an instrument of inspiration. I can humiliate or heal. In all situations, it is my response that decides whether a crisis will be escalated or de-escalated and a child humanized or dehumanized.

Haim Ginott

I have come to the frightening conclusion that I am the decisive element. It is my personal approach that creates the climate. It is my daily mood that makes the weather....In all situations, it is my response that decides whether a crisis is escalated or de-escalated, and a person is humanized or is dehumanized.

Johann Wolfgang von Goethe

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, ... This is the reason that history has not dealt kindly with the aftermath of protracted periods of low risk premiums.

Alan Greenspan

Rule One. You must know the difference between an asset and a liability, and buy assets. If you want to be rich, this is all you need to know. It is Rule No. 1. It is the only rule. This may sound absurdly simple, but most people have no idea how profound this rule is. Most people struggle financially because they do not know the difference between an asset and a liability.

Robert Kiyosaki

I believe, in the stock market - that's one of my fields - that most people are irrational. And to be irrational, you can be irrational in so many different ways that, practically, the result is indeterminate.

Paul Samuelson

It doesn't sound rational for a Klansman to sit down to dinner with a black man. What you're overlooking is, to be racist is to be irrational. So, they are already irrational, and irrational people do irrational things. That's why a Klansman will sit down with me.

Daryl Davis

Well, when I was younger, in high school, I started out smoking pot. Which escalated into taking acid on a regular basis, which escalated into selling acid. And then I started, when I went to college, I started doing opiates.

John Wozniak

Tastes and behavior are important in economics. Nobody denies that. But the question is: How much of behavior is irrational, and how much of the irrational behavior really affects prices? It turns out that's very difficult to answer.

Eugene Fama

It is easy enough to say, Be true to your values. But what if your values are irrational? Or what if the virtues you have committed yourself to are so much against human nature that they cannot be practiced consistently? Be careful of what you accept as your code of morality. Think carefully about whether its tenets serve your life and well being. Exercise critical judgment. Realize how much is at stake-your life, your happiness, your self-esteem.

Nathaniel Branden

I'd been suffering all of my life. I think comedians and artists, we do that. We know how to be the life of the party and enjoy exuberance outside of pain.

Princess Nokia

I know that the dream mind is irrational, but I like to think that if I hear something in a dream that's really good, then it's irrational... but it's not crazy.

Ted Leo

You know, I do not think it is necessarily looks, I do not think I am the prettiest girl... Everyone has something that is their asset, some have the hair, some have the cheekbones, others have the lips. But once you know what is your asset, then you should capitalize on it.

Blu Cantrell

A Quote by Alan Greenspan

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