It is always advisable to acquire new knowledge and a good way to do this is to have an open mind and pay attention to what the experts say. Thus, Alan Greenspan's quotes can be very useful in the world of finance. He is an economist born in 1926 in New York, specifically in Manhattan. With a Jewish family of both Hungarian and Romanian origin, Greenspan already showed a great interest in music and mathematics at a very young age. However, he chose to dedicate himself professionally to numbers.
Despite his academic achievements, Alan Greenspan is known especially for his career at the United States Federal Reserve, where he was in charge from 1987 to 2006. Apart from quoting the forty most famous phrases of Alan Greenspan, we will also talk a little about his biography and his achievements as chairman of the Federal Reserve.
The 40 best phrases of Alan Greenspan
Although this economist was not always right with the events during crises, he does have many years of experience in the world of finance, being nothing more and nothing less than the president of the United States Federal Reserve. In that position, one of its functions was banking and monetary policy supervision. Therefore, his sentences are not wasted.
- “In the absence of the gold standard, there is no way to protect savings from being confiscated due to inflation. There is no safe store of value. "
- "Unless you are willing to compromise, society cannot coexist."
- "We can't really forecast everything right, and yet we pretend we can, but we really can't."
- "The nature of finance is that it cannot be profitable if it is profitable significantly ... and since there is no debt, it can be lack and contagion."
- "Chinese productivity is the highest in the world, but the way they do it is by borrowing technology from abroad, through joint ventures or other means."
- "The United States can pay off any debt because it can always print money to do so. So there is zero probability of non-payment. "
- "The true measure of a career is to be able to be glad, even proud, that you made it through your own efforts without leaving a trail of victims in your wake."
- "Markets do very strange things because they react to people's behavior, and sometimes people are a bit off."
- "Protectionism will do little to create jobs and if foreigners retaliate, we will surely lose jobs."
- "The culture of Greece is not the same as the culture of Germany, and merging it into a single unit is extremely difficult."
- "I think I must warn you, that if I turn out to be particularly clear, you have probably misinterpreted what I said."
- "There is a limit to how much the United States treasury can borrow."
- "Any informed borrower is simply less vulnerable to fraud and abuse."
- "I do not deny that monopolies are terrible things, I deny that it is something very easy to solve through legislation of that nature."
- "Fear is a much more dominant force in human behavior than euphoria - I would never have expected that or given a moment's thought before, but it shows up in the data in many ways."
- "Anything we can do to increase personal savings is in the best interest of this country."
- "Finance is totally different from the rest of the economy."
- “He was a pretty good amateur musician, and he was an average professional. But all I saw was that the gang business was disappearing. "
- “The person I liked the most was Gerald R. Ford. He was the most decent man in politics that I have ever interacted with. "
- "History has not been kind to long-term low-risk premiums."
- "If you tax it, you will get less."
- “When you go back and look at American history, it is not very different from Canadian history. If you weren't self-sufficient from the prairie, you wouldn't survive. "
- "In effect, we have to make the ghost payment receiving system built around the trust look real."
- "Revolutions are something you see only in hindsight."
- "I get so involved when I have a problem that can't be solved that I just can't let go of what I'm doing - I keep thinking and thinking and I can't stop."
- "I have always considered myself more of a mathematician than a psychologist."
- «We are a democratic society. Shutting down the government should not be on the order of the day. "
- "It is very difficult to predict when a bond crisis could occur."
- “It is difficult to know which assets will be toxic. The best way is to make sure that only banks and shareholders feel it is to have adequate capital. "
- “You have to really stretch your imagination to figure out what the intrinsic value of Bitcoin is. I could not do it. Maybe someone else can.
- "Within Russia, diplomacy is actually much less important than movements of market stocks."
- "Buddy capitalism is essentially a condition in which public officials are giving favors to people in the private sector as payment for political favors."
- "One of the main problems with China is that its innovation is largely borrowed technology."
- "The problem is that there can be no global free trade with highly restrictive and regulated domestic markets."
- "I am a free market economist for years and years, and I have never deviated from that."
- "Fear invariably and universally induces lack of commitment, and lack of commitment is a negative division of labor."
- "There is no other job in public life quite like Fed Chairman."
- "Since 1948 I have spent every day thinking about how the economic and political worlds have changed."
- «The purpose of a politician is to be a leader. A politician has to lead. Otherwise he is simply a follower. "
- "The central focus of what we are doing in the federal government is to keep inflation from accelerating - and preferably slowing down."
Who is Alan Greenspan?
As we have already mentioned, Alan Greenspan is a New York economist. But to understand his phrases, let's talk a little about his academic career. Thanks to his great skill with figures and data, Greenspan received a degree in economics in 1948 from New York University. In the same place he obtained a doctorate in the same subject, 29 years later, in 1977. His thesis covered different issues, such as the increase in house prices and the effect this had on consumption, or the appearance of a growing housing bubble.
It should also be noted that he first tried getting his Ph.D. at Columbia University before trying it at New York University, but gave up. However, this period was of utmost importance to him, since he coincided with very notable economists such as Benjamin Graham, who was teaching at that time, and Warren Buffet, who was a student at the time. In addition, he received other influences during this time, of which the ideas of Arthur Burns stand out above all. These were based on a radical opposition to the budget deficit because of its relationship to inflation.
Chairman of the Federal Reserve
In 1987, Alan Greenspan replaced Paul Volcker as Chairman of the United States Federal Reserve. Fortunately or unfortunately, a short time later the great crisis of '87 began. Thanks to this event, Greenspan gained a lot of fame and importance since its role was considered essential to achieve financial consolidation in the United States. He managed to reach certain agreements with both the American Republican Party and the Democratic Party. This helped Greenspan end up running banking and monetary policy supervision. What's more, acquired the ability to modify interest rates. As you can see, Alan Greenspan's phrases are full of various experiences.
When the Wall Street stock market plummeted 20% shortly after his appointment as chairman of the Federal Reserve, Alan Greenspan had to react quickly, as the financial system ran the risk of collapsing. The New York economist responded to this event with great speed and stated that the United States Federal Reserve would provide the necessary liquidity to be able to guarantee the maintenance of the financial system.
Still, Alan Greenspan's decisions about interest rates they always used to have major repercussions on the markets. For this reason, the impact of the decisions that this man made regarding the bags used to be very valuable.
With 19 years of experience as president of the Federal Reserve of the United States, andThis New York economist meets all the requirements to be a prominent person in the world of finance. Now that you know the great phrases of Alan Greenspan and his career, I hope you know how to get some benefit and inspiration from them. Remember that acquiring more knowledge will always be enriching and useful in any field.