Stanley Druckenmiller Quotes

The way you create deflation is you create an asset bubble.

Deflation can be particularly dangerous when a financial system is shaky, with household and corporate balance sheets in poor shape and banks undercapitalized and heavily burdened with bad loans.

The stress on the financial system in the fall of 2007 was significant, but not so significant as to threaten the overall stability of the U.S. economy, although it did lead to the beginning of a recession at the end of 2007.

We had a booming stock market in 1929 and then went into the world's greatest depression. We have a booming stock market in 1999. Will the bubble somehow burst, and then we enter depression? Well, some things are not different.

The euphoria around economic booms often obscures the possibility for a bust, which explains why leaders typically miss the warning signs.

The Nasdaq bubble and crash were followed by the real estate bubble then subprime crash, which led to the unprecedented printing of trillions of dollars in an attempt to prevent a global depression.

At many points during our nation's history, there have been times - known in our history textbooks as 'panics' - when adverse conditions affecting the financial and economic sectors of the country have caused individuals to hoard more than they need.

Nothing would assure a recession more than a significant drop in housing prices.

I have 13 bankers in my office, and they say that if you go forward with this you will cause the worst financial crisis since World War II.

Britain was set to repeat the boom-bust cycle that led to 15 per cent. interest rates for one whole year in the early 1990s.

The Mexican debt crisis, Latin American debt crisis, the crises of the 1990s, the Wall Street stock market crash, and other events should have reminded us, and did remind us, that financial instability remains a concern, remains a problem.

Cause and effect, the riddle of all history, is a particular devil in financial history; and never more so than today, where entire classes of security are collapsing not on public exchanges and stock-tickers but because there are no markets to establish prices this side of nothing.

I don't know what a credit bubble means. I don't even know what a bubble means. These words have become popular. I don't think they have any meaning.

There was, of course, a global financial crisis. But our Labour predecessors left Britain exceptionally vulnerable and damaged: more personal debt than any other major economy; a dangerously inflated property bubble; and a bloated banking sector behaving as masters, not the servants of the people.

There's a loss of faith in the banking system that for so long has been the backbone of prosperity and growth.

Financial crises are an unfortunate but necessary consequence of modern capitalism.

There are different flavors of recession. You can get into some pretty dark scenarios pretty quickly.

Should that worse scenario materialize, then most probably our propensity to increase interest rates will be weaker.

The reality for us in America is that we will never get out of debt with more than 15 million people out of work.

Within a few months in 2008, household finances were crushed as asset values fell, millions of jobs were lost, countless credit cards were canceled, and thousands of homes were foreclosed on.

The world is still in deleveraging.

What we need to understand is, one, that there are market failures; and two, that there are things like asset bubbles and irrational exuberance. There are periods of booms, bubbles, and manias. These things, if left to themselves, can lead to crashes, to busts, to panics.

If the banks become unreliable lenders, apartment prices will drop dramatically.

People aren't as impressed by homes anymore after they saw how they collapsed in price with the financial crisis.

If the Fed is omniscient, why didn't they pull back on the excess money supply that inflated the massive housing bubble that popped so disastrously back in 2008?