【Financial Celebrity】Alan Greenspan：Invest regularly and systematically.

Greenspan has been named by many US presidents to serve as the chairman of the Federal Reserve and has served a record-breaking 18 years. He is recognized as the most outstanding Fed chairman in economics, and even Fulimin, an economist who has never received praise for this position, praises him. What is the reason that the successive presidents value him, even after leaving office, all walks of life still value his opinions?

Contribution to the U.S. Economy

Since Greenspan became chairman of the Federal Reserve in 1987, the US economy has experienced two recessions, a stock market bubble, and the longest period of growth in history. During his tenure, he gradually lowered the federal funds rate to 1%, and then gradually rose back to 5.25%. Stable economic development by adjusting interest rates is his characteristic.

Therefore, during these eighteen years, American prices have been very stable, and the inflation rate has hovered between two to three percent. This is because he has a thorough grasp of economic data and can often take precautions. When he anticipates excessive inflation, he will raise the fund interest rate, and lower it when the unemployment rate or output index is unfavorable. Almost no central bank chairman in history can effectively control inflation or deflation by adjusting interest rates like Greenspan.

From clarinet performer to economist

In fact, Greenspan was not an economist at first, but a professional clarinet player. Later, he gave up music to study economics, and obtained a bachelor and master degree in economics from New York University in 1948 and 1950, respectively. After graduation, he studied at Columbia University, but dropped out afterwards. He is a friend of the philosopher Ayn Rand, influenced by the other side, and his position focuses on the market system.

In 1954, he co-founded "Townsend-Greenspan & Co." (Townsend-Greenspan & Co.) with Towson. He has also worked in various government consulting agencies as an economic consultant. His first high-profile job appointment in his life was from 1974 to 1977, serving as the chairman of the "Economic Advisory Council" during Ford's presidency. How has the result been in the past few years? The results are surprising.

He also made frequent mistakes

On January 7, 1973, Greenspan made a bold prediction in the New York Times, describing the economy at that time as "the situation has never been so optimistic." In fact, he was so wrong. Four days later, the Dow Jones Industrial Index reached its peak of 1051 points. However, following the severe economic recession in the United States after the "Great Depression", the Dow Jones Industrial Average fell 46% in the following two years.

On September 5, 1974, on the second day of his first appointment as Chairman of the "Economic Advisory Council", he announced that there will be no major economic downturn in our economy. However, as we all know, from mid-1974 to mid-1975, the US economy shrank by 5.8%.

Greenspan predicted in 1978 that the ending interest rate of short-term Treasury bills would be 4.4%, but in fact it was 9.8%. As for the inflation rate of the year, his forecast was 4.5%, but the annual inflation rate rose to 9.2%.

In 1977, Greenspan returned to campus and received his doctorate from New York University. In the mid-1980s, Greenspan became a member of the Alcoa Board of Directors.

On August 11, 1987, Greenspan assumed the chairmanship of the Federal Reserve Committee. During his tenure, he gradually lowered the federal funds rate to 1%, and then gradually rose back to 5.25%. He was nominated and appointed many times by Reagan, Bush Sr. and Clinton. On May 18, 2004, President Bush nominated him as his successor to the chairman of the Federal Reserve. This was his fifth re-election to the position, unprecedented in American history.

In 2002 he was awarded the honour of KBE and Officer of the French Legion of Honor. In 2004, he was awarded an honorary doctorate by Prince Philip (Duke of Edinburgh, Honorary Chancellor of the University of Edinburgh, husband of Queen Elizabeth II) at McEwen Hall, University of Edinburgh.

In 2006, Greenspan ended his Fed career. He was later appointed as the Honorary Advisor to the British Chancellor of the Exchequer, and he plans to continue to write works.

In 2007, he was hired as a senior consultant by PIMCO, the world's largest bond investment management company.

Greenspan Quotes:
1.     I know you think you understand what you thought I said but I'm not sure you realize that what you heard is not what I meant.
2.    Government regulation cannot substitute for individual integrity.
3.    Protectionism will do little to create jobs and if foreigners retaliate, we will surely lose jobs
4.    Any informed borrower is simply less vulnerable to fraud and abuse.
5.    Whatever you tax, you get less of.
6.    Anything that we can do to raise personal savings is very much in the interest of this country.