Assets Quote by Alan Greenspan
“But how do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions as they have in Japan over the past decade?”
About This Quote
Source Speech: Economic outlook, 2010
Identifying irrational exuberance requires recognizing unsustainable asset price spikes and potential prolonged downturns.
In simple terms: Spotting irrational exuberance involves seeing overvalued assets and possible long declines.
Monitor market signs for unsustainable growth.
Themes
Mood
Type
When to use this quote
- investment decisions
- policy planning
- risk assessment
Key Concepts
Questions to Reflect On
- How can you detect early bubbles?
- What safeguards mitigate prolonged contractions?
Predicting timing is difficult.