Irrational exuberance is a state of mania. This mechanism has been termed “irrational exuberance,” a phrase often attributed to former Federal Reserve chairman Alan Greenspan.
Former Federal Reserve chairman Alan Greenspan on stock prices and the current state of the economy. Last Friday on CNBC, former Fed Chairman Alan Greenspan said that it's fair to characterize the current bond bubble as an "irrational exuberance" type of forecast.He did hedge the statement by saying that he has "no time frame on the forecast." Also note that he started making this bond bubble call in 2015.. Clearly, sustained low inflation implies less … In the stock market, it's when investors are so confident that the price of an asset will keep going up, they lose sight of its underlying value.
Twenty years ago today, former Fed Chief Alan Greenspan gave the now-infamous "irrational exuberance" speech. “The concept of irrational exuberance came to me in the bathtub one morning,” Alan Greenspan recalled. The stock market ignored him. That’s when you get the “irrational exuberance” that former Federal Reserve chair Alan Greenspan first referred to in December of 1996. Irrational exuberance" is the phrase used by the then-Federal Reserve Board chairman, Alan Greenspan, in a speech given at the American Enterprise Institute during the dot-com bubble of the 1990s. The Internet and related technologies made their first broad penetrations into the economy, prompting a Wall Street technology-driven bubble, which Federal Reserve chairman Alan Greenspan described in 1996 as "irrational exuberance". He said “irrational exuberance” to describe tech investors in the late 1990s. The stock market kept going up anyway. The stock market kept going up anyway. REUTERS Friday saw a blowout jobs report.
Simply stated, the fact that so many people seem to be making big profits on the investment, and telling others about their good fortune, makes the investment seem safe and too good to pass up. Simply stated, the fact that so many people seem to be making big profits on the investment, and telling others about their good fortune, makes the investment seem safe and too good to pass up. Irrational Exuberance: Alan Greenspan’s Call, 20 Years Later The former Fed chairman’s phrase has since transcended Wall Street, Main Street and even the best-seller list “The concept of irrational exuberance came to me in the bathtub one morning,” Alan Greenspan recalled. Alan Greenspan, the former Federal Reserve chief who called out the tech-fueled rally of the mid-1990s as "irrational exuberance," is now giving investors a new warning. Irrational Exuberance: Audiences Love Broadway Hit 'Greenspan' A musical inspired by the Broadway hit about Alexander Hamilton tells the story of former Fed Chairman Alan Greenspan. The phrase was coined by once-upon-a-time Federal Reserve Board chairman, Alan Greenspan, when discussing the dot-com bubble in December 1996. Last Friday on CNBC, former Fed Chairman Alan Greenspan said that it's fair to characterize the current bond bubble as an "irrational exuberance" type of forecast.He did hedge the statement by saying that he has "no time frame on the forecast."
By 1998, the economy was booming and unemployment below 5%. Irrational exuberance is the point where people invest in things where they cannot reasonably justify the price that they are paying. Twenty years ago today, former Fed Chief Alan Greenspan gave the now-infamous "irrational exuberance" speech. The phrase was interpreted as a warning that the stock market might be overvalued.