From BL archives:
Alan Greenspan, during his speech in 1996 at the American Enterprise Institute for Public Policy Research said: “Clearly, sustained low inflation implies less uncertainty about the future, and lower risk premiums imply higher prices of stocks and other earning assets. We can see that in the inverse relationship exhibited by price/earnings ratios and the rate of inflation in the past. But how do we know when - - has unduly escalated asset values, which then become subject to unexpected and prolonged contractions as they have in Japan over the past decade?” Fill in the blanks with a two-word phrase, which has now become famous among investors.
5 comments:
'sub prime'
- Kunal
No Kun'l! Clue is it's the title of a Robert Shiller book too!
'Irrational Exuberance' (Powered by Google).
My first guess was 'subprime mortgage', since that seems to be the cause of every cough and collapse. I really have to improve my GK and quizzing elan. BTW, my supercomputing story comes out this week. Brickbats awaited.
- Kunal
Correct Kunal.
Don't worry, my question was also powered by Google!!
Will check out your story. Btw, my story's also there. So, I guess we could start a mutual admiration society. I prefer cricket bats to brickbats anyday!!!
(from The Onion)
Mountaintop Retreat With Maharishi Leaves Greenspan Obsessed With Rupee
April 12, 2000 | Issue 36•13
WASHINGTON, DC–Returning from a two-week retreat at the top of Nanda Devi in the Indian state of Himachal Pradesh with mentor Maharishi Mahesh Yogi, Fed Chair Alan Greenspan announced Monday that all currency flows organically from India's rupee. "Just as water, which ordinarily flows downhill, will leap up to cover a rock, so do the currencies of the seven major industrialized nations adapt their direction and flow to the rupee, the one constant in an ever-changing economy," said Greenspan, clad in a traditional Indian sherwani and sandals. "The metafiscal ramifications are simultaneously overwhelming and calming.
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