Alan Greenspan: Price

“It was the failure to properly price such risky assets that characterized the crisis.”

Alan Greenspan

"Epilogue", p. 512.
2000s, The Age of Turbulence (2008)
Context: Much of the securitization took the form of collateralized debt obligations (CDOs) with senior credit tranches certified by rating agencies as AAA. It was the failure to properly price such risky assets that characterized the crisis.

Failure

“A decline in the national housing price level would need to be substantial to trigger a significant rise in foreclosures, because the vast majority of homeowners have built up substantial equity in their homes despite large mortgage-market financed withdrawals of home equity in recent years.”

Alan Greenspan

July 2005 http://www.startribune.com/nation/12598281.html, in testimony to the House Financial Services Committee.
2000s

Home , Housing

“That said, there can be little doubt that exceptionally low interest rates on ten-year Treasury notes, and hence on home mortgages, have been a major factor in the recent surge of homebuilding and home turnover, and especially in the steep climb in home prices. Although a 'bubble' in home prices for the nation as a whole does not appear likely, there do appear to be, at a minimum, signs of froth in some local markets where home prices seem to have risen to unsustainable levels.”

Alan Greenspan

Greenspan on June 9, 2005 http://www.federalreserve.gov/boarddocs/testimony/2005/200506092/default.htm.
2000s

Home , Appearance

“[There are] signs of froth in some local markets where home prices seem to have risen to unsustainable levels.”

Alan Greenspan

July 2005 http://www.startribune.com/nation/12598281.html, in testimony to the House Financial Services Committee.
2000s

Home

“Nor can private counterparties restrict supplies of gold, another commodity whose derivatives are often traded over-the-counter, where central banks stand ready to lease gold in increasing quantities should the price rise.”

Alan Greenspan

Testimony Before the Committee on Banking and Financial Services, U.S. House of Representatives July 24, 1998 http://www.federalreserve.gov/boarddocs/testimony/1998/19980724.htm.
1990s

“Once stock prices reach the point at which it is hard to value them by logical methodology, stocks will be bought as they were in the late 1920s not for investment but to be unloaded at a still higher price. The ensuing break could be disastrous because panic psychology cannot be summarily altered or reversed by easing money policies.”

Alan Greenspan

Greenspan in 1959. http://www.safehaven.com/article-171.htm.
1950–60s

Money

“While local economies may experience significant price imbalances, a national severe price distortion seems most unlikely in the United States, given its size and diversity.”

Alan Greenspan

October 19, 2004 http://www.federalreserve.gov/boarddocs/speeches/2004/20041019/default.htm, playing down the threat of a national housing bubble.
2000s