Believe Quote by Alan Greenspan
![“I believe that the general growth in large [financial] institutions have occurred in the context of an underlying structure of markets in which many of the larger risks are dramatically -- I should say, fully -- hedged.” quote by Alan Greenspan](https://sms4smile.com/quotes/img-quotes/c3d/alan-greenspan-1834_believe_i-believe-that-the-general-growth-in-lar_267082.jpg)
“I believe that the general growth in large [financial] institutions have occurred in the context of an underlying structure of markets in which many of the larger risks are dramatically -- I should say, fully -- hedged.”
About This Quote
Source Speech: Remarks on Financial Stability, Alan Greenspan, 2005
He argues that large financial institutions have become largely protected against major risks due to comprehensive hedging structures.
In simple terms: Big banks are now well‑hedged against big risks.
Key Takeaway
Recognize the limits of risk protection.
Themes
finance
risk management
regulation
Mood
cautious
analytical
Type
analytical
critical
When to use this quote
- investment strategy
- policy making
- corporate risk assessment
Key Concepts
hedging
systemic risk
market structure
Questions to Reflect On
- Are current hedging practices sufficient for future crises?
- What risks remain unhedged?
A Different Perspective
Even with hedging, unexpected shocks can still cause crises.
![“Skilled shortages in America exist because we are shielding our skilled labor force from world competition. [Visa quotas] have been substituted for the wage pricing mechanism. In the process we have created [a] privileged elite whose incomes are being supported at non-competitively high levels by…” quote by Alan Greenspan](https://sms4smile.com/quotes/img-quotes/e7f/alan-greenspan-1834_america_skilled-shortages-in-america-exist-becau_52819.jpg)
