Alan Greenspan
Alan Greenspan
Alan Greenspanis an American economist who served as Chairman of the Federal Reserve of the United States from 1987 to 2006. He currently works as a private adviser and provides consulting for firms through his company, Greenspan Associates LLC. First appointed Federal Reserve chairman by President Ronald Reagan in August 1987, he was reappointed at successive four-year intervals until retiring on January 31, 2006, after the second-longest tenure in the position...
NationalityAmerican
ProfessionEconomist
Date of Birth6 March 1926
CityNew York City, NY
CountryUnited States of America
bonds companies cut equity halt virtually
Issuance of equity and of bonds by lower-rated corporations has come virtually to a halt -- even investment-grade companies have cut back substantially on their borrowings,
consumer continue demand equity fixed fuel housing levels low mortgage rates reasonably remain spending strong support thus
Fixed mortgage rates remain at historically low levels and thus should continue to fuel reasonably strong housing demand and, through equity extraction, to support consumer spending as well,
aversion business cautious costs equity financing greater higher household lead lower prices risk spending
Lower equity prices and higher financing costs should damp household and business spending, and greater uncertainty and risk aversion may also lead to more cautious spending behavior,
assess assuming believes borrowers carefully changes effect equity federal involved margin purchase recognizes regard reserve risks stock studies suggest volatile
With regard to margin requirements, studies suggest that changes in such requirements have no appreciable and predictable effect on stock prices, ... Nonetheless, the Federal Reserve recognizes that considerable risks can be involved in the purchase of equity on margin, especially in volatile markets, and believes lenders and borrowers need to assess carefully the risks they are assuming through the use of margin.
almost appears attacks blows business cycles declines economy equity induced investment last major previous september severe sharp surely terrorist tragic
The U.S. economy appears to have withstood a set of blows -- major declines in equity markets, a sharp retrenchment in investment spending, and the tragic terrorist attacks of last September -- that in previous business cycles almost surely would have induced a severe contraction,
cannot decline direct equity expansion function good
A good part of this expansion is a direct function of the decline in real equity premiums. That cannot go on indefinitely.
appear envision equity greater growth level prices profits
The level of equity prices would appear to envision substantially greater growth of profits than has been experienced of late,
gradual slowly test
We have to do it in a cautious, gradual way. ... (We) should go slowly and test the waters.
fall few inflation next pickup though unwelcome
The probability of an unwelcome substantial fall in inflation over the next few quarters, though minor, exceeds that of a pickup in inflation.
america creation education higher knowledge research scale scope shaped teaching training
The scale and scope of higher education in America was being shaped by the recognition that research -- the creation of knowledge --complemented teaching and training -- the diffusion of knowledge,
asset assisted boost businesses earlier economic environment households improved left prices
These changes, assisted by improved prices in asset markets, have left households and businesses better positioned than they were earlier to boost outlays as their wariness about the economic environment abates,
exposed service
these borrowers, and the institutions that service them, could be exposed to significant losses.
degree future potential raising september shock
The shock of September 11, by markedly raising the degree of uncertainty about the future, has the potential to result, for a time, in pronounced disengagement from future commitments,
currently despite economic emerging exemplary growth inflation labor lower nearly ninth obvious output remained signs states thirty united year
The United States is currently in its ninth year of economic expansion, an exemplary accomplishment by any standard. Growth of output has remained vigorous, unemployment is lower than it has been in nearly thirty years, and yet, despite the tautness in labor markets, there have been no obvious signs of emerging inflation pressures,