Once stock prices reach the point at which it is hard to value them by logical methodology, stocks will be bought as they were in the late 1920s not for investment but to be unloaded at a still higher price. The ensuing break could be disastrous because panic psychology cannot be summarily altered or reversed by easing money policies.
Alan GreenspanRelated topics
bought break easing hard late methodology money once panic point psychology reach value 1920s higherRelated quotes
Sir, money, money, the most charming of all things money, which will say more in one moment than the most elegant lover can in years. Perhaps you will say a man is not young I answer he is rich. He is not genteel, handsome, witty, brave, good-humored, but he is rich, rich, rich, rich, rich that one word contradicts everything you can say against him.
Henry Fielding
There are people who strictly deprive themselves of each and every eatable, drinkable, and smokable which has in any way acquired a shady reputation. They pay this price for health. And health is all they get for it. How strange it is. It is like paying out your whole fortune for a cow that has gone dry.
Mark Twain
Finance came to be viewed as a productive activity itself rather than a means to promote production. The public was no longer buying stock to invest in enterprises that would pay dividends over time, but merely because one could get rich from buying and selling stocks. As more people bought in, stock prices climbed still higher-a dangerous positive feedback loop.
James Howard Kunstler
What an economy really wants, after all, is not more investment per se but better investment. It wants capital to flow to companies that will create value - not in the form of a rising stock price but in the form of more goods for less cost, more jobs, and rising wages - by enhancing productivity.
James Surowiecki
I don't know of any other form of life that gathers up all the food it needs in the first two-thirds of its life in order to do nothing in its last third of life. In a utopian presentist society, instead of working extra hard to put money in the bank, you'd be working to provide value for the people around you.
Douglas Rushkoff