Dec 17, 2009

Alan Greenspan on stock market rally as economic stimulus

“When stock prices go up, the market value of common stock or of equity in banks and other financial institutions rises,” he said. “And the market value of liabilities is importantly affected by the size of the equity market value cushion on banks’ balance sheets.”

~Alan Greenspan, "Greenspan Says Stock Rally Means Lower Stimulus Need", December 17, 2009, (link)

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