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Rolf Englund IntCom internetional
But how do we know when irrational exuberance has unduly escalated asset values
Chairman Alan Greenspan
December 5, 1996
We can see that in the inverse relationship exhibited by price/earnings ratios and the rate of inflation in the past. which then become subject to unexpected and prolonged contractions as they have in Japan over the past decade?
The day of the speech, the Dow Jones industrial average closed at 6,437.10 points
Former Fed Chief Greenspan Sees No Bubble in Dow 16,000
"The behavior in what we are observing in the last seven weeks is identical in many respects to what we saw in 1998, what we saw in the stock-market crash of 1987, I suspect what we saw in the land-boom collapse of 1837 and certainly [the bank panic of] 1907," Greenspan said at the event organized by the Brookings Papers on Economic Activity, according to the Journal.
Bernanke’s Sophie's Choice: