OT ... Mucho, re your Greenspan quote
i can quote what i want. if you really want to read the whole passage, why don't you find the speech and read it yourself?
Yes, you can quote what you want. Everyone can. But IMHO, a link to the source should accompany a quote when possible. That's just common courtesy.
The entire paragraph (from the September 24, 1996 FOMC meeting) attributed to Alan Greenspan:
"I recognize that there is a stock market bubble problem at this point, and I agree with Governor Lindsey that this is a problem that we should keep an eye on. We have very great difficulty in monetary policy when we confront stock market bubbles. That is because, to the extent that we are successful in keeping product price inflation down, history tells us that price-earnings ratios under those conditions go through the roof. What is really needed to keep stock market bubbles from occurring is a lot of product price inflation, which historically has tended to undercut stock markets almost everywhere. There is a clear tradeoff. If monetary policy succeeds in one, it fails in the other. Now, unless we have the capability of playing in between and managing to know exactly when to push a little here and to pull a little there, it is not obvious to me that there is a simple set of monetary policy solutions that deflate the bubble. We do have the possibility of raising major concerns by increasing margin requirements. I guarantee that if you want to get rid of the bubble, whatever it is, that will do it. My concern is that I am not sure what else it will do. But there are other ways that one can contemplate."
federalreserve.gov, document page 31.
Ron |
