"If one regards inflation as an evil, then one has to stop inflating. One has to balance the budget of the government."
-Ludwig von Mises
"We must fight all that we dislike in public life. We must substitute better ideas for wrong ideas."
-Ludwig von Mises
"Which brings me to the point: In order to lose momentum, the U.S. economy has to have momentum to begin with. If it had any, I missed it. What we had was a government-prescribed course of amphetamines (to keep it up), antibiotics (to prevent infection) and antidepressants (to make it feel better). It endured regular steroid injections from both monetary and fiscal authorities. And it still has no real muscle."
-Caroline Baum, Bloomberg
"We must refrain from over-reacting to every piece of minutia in the economic data; know the fundamental trends and ignore the noise around the trend"
-Dave Rosenburg, Chief Economist & Strategist at Gluskin Sheff
"Unfortunately, a wide range of possible outcomes necessarily implies, well, a wide range of possible outcomes. Some of those can be quite bad, but some can be quite good. Still, if theaverage expected outcome is poor, we'll forego the possibility of those quite good outcomes in order to avoid the quite bad ones. That can be difficult during periods when speculative (and even dangerous) risk is temporarily working out nicely, while we're standing defensive. But long-term returns are based on repeated discipline, not single hits or misses (except for investors who take excessive risks that wipe them out)."
-John P. Hussman Ph. D.
As bankers demanded that new regulation should not stifle innovation, a clearly irritated Mr Volcker said that the biggest innovation in the industry over the past 20 years had been the cash machine. He went on to attack the rise of complex products such as credit default swaps (CDS).
"I wish someone would give me one shred of neutral evidence that financial innovation has led to economic growth-one shred of evidence."
-Paul Volcker -12/9/09
"Unfortunately we just saw who is behind the curtain, it was Tim Geithner, and what we saw what Tim Geithner did with AIG, it failed, it was wrong, it was a disaster. We need that scrutiny of the Fed. There is a way to do what Paul Volcker says which is to protect the information about individual institutions but still bare to the world what the Fed is thinking. They have been wrong, other than when Paul Volcker was there, understand that Alan Greenspan got it fundamentally wrong over and over again. That's why they don't want us to see what they've been doing. The bailouts have been wrong, the macro policies have been wrong, until we put this on the table, we can't correct it."
"Instruct regulators to look for the newest fad in the industry and examine it with great care. The next mistake will be a new way to make a loan that will not be repaid."
-Bill Seidman, Chairman FDIC 1985-1991
"A major problem with the 'stress test' is it depends on modelling and it's the precise practice responsible for much of this economic and financial mess. It's extraordinary that so many people believe that the Fed and Treasury, after missing the financial disaster, housing debacle, recession and derivative implosion, can now extrapolate economic conditions and resultant financial effects from its models. How did all that rocket-science modelling for sub-prime defaults and securitization workout? Yet many people forget and ignore this reality."
"If you put the federal government in charge of the Sahara Desert, in 5 years there would be a shortage of sand. "
"Most of the time common stocks are subject to irrational and excessive price fluctuations in both directions as the consequence of the ingrained tendency of most people to speculate or gamble... to give way to hope, fear and greed."
"It is the mark of an educated mind to be able to entertain a thought without accepting it."
"It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently."
- Warren Buffett
"Only when the tide goes out do you discover who's been swimming naked."
"Risk comes from not knowing what you're doing."
"Diversification is a protection against ignorance. It makes very little sense for those who know what they're doing."
"An investor needs to do very few things right as long as he or she avoids big mistakes."
"Efficient Market Hypothesis: I'd be a bum on the street with a tin cup if the markets were always efficient."
"We will only do with your money what we would do with our own."