Alan Greenspan Effect Quotations

The fact of the matter is, we do not have an unlimited amount of labor, ... the wealth effect cannot persist indefinitely.

With regard to margin requirements, studies suggest that changes in such requirements have no appreciable and predictable effect on stock prices, ... Nonetheless, the Federal Reserve recognizes that considerable risks can be involved in the purchase of equity on margin, especially in volatile markets, and believes lenders and borrowers need to assess carefully the risks they are assuming through the use of margin.

Technology is also damping upward price pressures through its effect on international trade,

The bottom line, however, is that, while immigration and imports can significantly cushion the consequences of the wealth effect and its draining pool of unemployed workers for awhile, there are limits,