What did Greenspan say?

What did Greenspan say?

“Irrational exuberance” is the phrase used by the then-Federal Reserve Board chairman, Alan Greenspan, in a speech given at the American Enterprise Institute during the dot-com bubble of the 1990s. The phrase was interpreted as a warning that the stock market might be overvalued.

When did Greenspan say irrational exuberance?

1996
Irrational exuberance is unfounded market optimism that lacks a real foundation of fundamental valuation, but instead rests on psychological factors. The term was popularized by former Fed chair Alan Greenspan in a 1996 speech addressing the burgeoning internet bubble in the stock market.

What was Greenspan’s role in 2008 financial crisis?

Alan Greenspan is an American economist and former chair of the Federal Reserve. The expansionary monetary policy of “easy money” attributed to Greenspan’s tenure has been blamed in part for stoking the 2000 dot-com bubble and the 2008 financial crisis.

When was Greenspan appointed?

August 11, 1987
Appointed by U.S. Pres. Ronald Reagan to fill Paul A. Volcker’s term as chairman of the Federal Reserve Board, Greenspan took office on August 11, 1987.

How was Greenspan wrong?

In congressional hearings in 2008 before a House committee chaired by Henry Waxman, Greenspan testified that he “made a mistake in presuming that the self- interest of organizations, specifically banks and others, were [sic] such that they were best capable of protecting their own shareholders and their equity in the …

What did Greenspan do in response to the crash?

Two months after his confirmation, Greenspan said immediately following the 1987 stock market crash that the Fed “affirmed today its readiness to serve as a source of liquidity to support the economic and financial system”.

What is an example of irrational exuberance?

Examples of Irrational exuberance US house prices boomed in mid 2000s. In 2003-05, the growth in sub-prime mortgage lending was based on irrational exbuerance. The period leading up to stock market crash in 1929. Credit bubble and credit crisis of the 2000s.

Who said the phrase irrational exuberance?

Nobel laureate economist Robert Shiller, who may have coined the term, cemented its renown with the publication in 2000 of his now-classic book, “Irrational Exuberance.”

Why did Greenspan raise rates in 2000?

In response to questions from the committee, Greenspan told the committee that he was concerned about the recent rise in oil prices, which have pushed the per-barrel price above $30 for the first time since the Persian Gulf War in 1991. Greenspan also issued the Fed’s new economic forecast for 2000.

What are asset bubbles?

An asset bubble occurs when the price of an asset, such as stocks, bonds, real estate, or commodities, rises at a rapid pace without underlying fundamentals, such as equally fast-rising demand, to justify the price spike.

What is Alan Greenspan’s quote from 1 20 20?

Alan Greenspan quotes Showing 1-20 of 20 “ I know you think you understand what you thought I said but I’m not sure you realize that what you heard is not what I meant” ― “I know that you believe you understand what you think I said, but I’m not sure you realize that what you heard is not what I meant.” ― “There are errors in this book.

What did Alan Greenspan do wrong?

A long-time cheerleader for deregulation, Greenspan admitted to a congressional committee yesterday that he had been “partially wrong” in his hands-off approach towards the banking industry and that the credit crunch had left him in a state of shocked disbelief. “I have found a flaw,” said Greenspan, referring to his economic philosophy.

What did Greenspan say about his economic philosophy?

“I have found a flaw,” said Greenspan, referring to his economic philosophy. “I don’t know how significant or permanent it is. But I have been very distressed by that fact.”

How do I start a conversation with Alan Greenspan?

Start by following Alan Greenspan. “I know that you believe you understand what you think I said, but I’m not sure you realize that what you heard is not what I meant.” “There are errors in this book. I do not know where they are.

Begin typing your search term above and press enter to search. Press ESC to cancel.

Back To Top