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
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,
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,
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.
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,
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,
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,
good moving pressures reasonably
Inflationary pressures will be reasonably well contained, so long as productivity is moving at a reasonably good clip,
benefits continuing derived distinct existing extent far growth high increase plus potential rates remain support technology total
Indications that the extent of the application of existing technology is still far from complete, plus potential benefits derived from continuing synergies, support a distinct possibility that total productivity growth rates will remain high or even increase further,
avoiding business complete complexity containing current economic expansion extend recession responding
Indeed, our goal, in responding to the complexity of current economic forces, is to extend the expansion by containing imbalances and avoiding the very recession that would complete a business cycle,
consistent financial government highly indeed liquid market mission mortgage primary providing
Indeed only such highly liquid portfolios would be consistent with (government-sponsored enterprises') mission of providing primary mortgage market liquidity during a crisis, particularly a financial crisis,
consistent financial highly liquid market mission mortgage primary providing
Indeed, only such highly liquid portfolios would be consistent with (government-sponsored enterprises') mission of providing primary mortgage market liquidity during a crisis, particularly a financial crisis,
cost countries deter guarantee likely might principal vulnerable
in more vulnerable countries where (the principal bank's) guarantee is more likely to be called upon and (where) cost might deter some aberrant borrowing.
create creates economy economy-and-economics enhance growth higher modest quantities rate serious standards
in modest quantities does enhance the rate of growth of the economy and does create higher standards of living, but in excess, creates very serious problems.