A Quote by Alan Greenspan
By far the most significant event in finance during the past decade has been the extraordinary development and expansion of financial derivatives.
Quote Topics
Quote Author
Related Quotes
It seems superfluous to constrain trading in some of the newer derivatives and other innovative financial contracts of the past decade. The worst have failed; investors no longer fund them and are not likely to in the future.
The financial crisis involved significant failures in the functioning, regulation, and supervision of OTC derivatives markets.
The use of a growing array of derivatives and the related application of more-sophisticated approaches to measuring and managing risk are key factors underpinning the greater resilience of our largest financial institutions... Derivatives have permitted the unbundling of financial risks.
The underlying principles of sound investment should not alter from decade to decade, but the application of these principles must be adapted to significant changes in the financial mechanisms and climate.
From a long view of the history of mankind, seen from, say, ten thousand years from now, there can be little doubt that the most significant event of the 19th century will be judged as Maxwell's discovery of the laws of electrodynamics. The American Civil War will pale into provincial insignificance in comparison with this important scientific event of the same decade.
From the 1990s onward, the financial sector created a vast array of instruments designed to separate investors from their money, financial derivatives of an ever-increasing level of complexity. At some point, this complexity reached a point where even the creators of the derivatives themselves didn't understand them.
Clever derivatives broke dozens of companies. It killed them. Bankrupt. We don't need these kinds of innovation in finance. It's OK to be boring in finance. What we want is innovation in widgets.
The subprime disaster was a result of financial bombs - derivatives - exploding in financial institutions such as AIG and Lehman Brothers, as well as banks and financial institutions throughout the world.
People far too often associate derivatives markets with mere speculation, but there are very legitimate businesses that need derivatives to protect themselves against risk.
The most significant moment will be when we stop referring to the hiring of qualified women (and racial, ethnic and religious minorities) as significant. In other words, when qualified people are hired without regard to race, gender, ethnicity, religious or other differentiating characteristics, that will be the most significant, indeed momentous, event of all.
If the past decade was the decade of searching and finding and looking for stuff, this coming decade is going to be the decade of filtering and going to your friends for recommendations.
The math you need for most of finance is ninth-grade algebra, and most people feel reasonably comfortable with that. But I think the financial world there has been - I don't know if it's by design, or this is how it's evolved - there are bad actors who have wanted to obfuscate because you can benefit from the lack of transparency.
The beauty of a financial institution is that there are a lot of ways to go to hell in a bucket. You can push credit too far, do a dumb acquisition, leverage yourself excessively - it's not just derivatives [that can bring about your downfall].
There is no significant man-made global warming at this time, there has been none in the past and there is no reason to fear any in the future. Efforts to prove the theory that carbon dioxide is a significant 'greenhouse' gas and pollutant causing significant warming or weather effects have failed. There has been no warming over 18 years.
Perhaps the most significant event in the evolution of the liberated mind arrives with the realization that most people, even in their deepest convictions, are blind to most truths.
Inappropriate macro economic policies in some economies, characterised by [a] low savings rate and high consumption [and] failure of financial supervision and regulation to keep up with innovation which allowed financial derivatives to spread.
Related Authors
Adam Smith Quotes
Scottish
Economist
Benjamin Graham Quotes
American
Economist
Friedrich August von Hayek Quotes
Austrian
Economist
John Kenneth Galbraith Quotes
American
Economist
John Maynard Keynes Quotes
English
Economist
Joseph Stiglitz Quotes
American
Economist
Ludwig von Mises Quotes
Austrian
Economist
Milton Friedman Quotes
American
Economist
Muhammad Yunus Quotes
Bangladeshi
Economist
Murray Rothbard Quotes
American
Economist
Paul Craig Roberts Quotes
American
Economist
Paul Krugman Quotes
American
Economist
Richard Thaler Quotes
American
Economist
Robert Reich Quotes
American
Economist
Thomas Sowell Quotes
American
Economist
Walter E. Williams Quotes
American
Economist