I've always argued that this country has benefited immensely from the fact that we draw people from all over the world.
Alan GreenspanRead
The very nature of finance is that it cannot be profitable unless it is significantly leveraged... and as long as there is debt, there can be failure and contagion.
Interpretation
What this quote means
Finance relies on leverage to generate profits, which also increases the risk of failure through debt.
In this quote, Alan Greenspan emphasizes the dual nature of finance, where profitability often hinges on taking on significant leverage. This leverage, while potentially leading to substantial gains, also carries the inherent risk of debt-related failures and repercussions that can spread across the financial system, illustrating the precarious balance between risk and reward in financial operations.
Themes
FinanceLeverageDebtRiskProfitabilityContagion
In practice
Example use cases
This quote serves as a warning when discussing financial strategies at a business conference.
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