Raghuram Rajan Quotes

The markets don't like instability and they don't like uncertainty.

Most business people today are not going to invest in the uncertainty that exists in America.

The reality is that the institutional framework in which Wall Street operates is fundamentally inappropriate, and it inevitably generates violent fluctuations of the market.

Economies are risky. Some industries rise, and others implode, like housing. Some places get richer, and others drop, like Atlantic City. Some people get new jobs that pay better, many lose their jobs or their wages.

I put forward a pretty general theory that financial markets are intrinsically unstable. That we really have a false picture when we think about markets tending towards equilibrium.

We say, 'The market plummets,' like it's some roaring creature.

It was always tough, but today we are in the throes of something we have never seen in our history. It's clear in recent times the market is looking for a bottom.

Investors have few spare tires left. Think of the image of a car on a bumpy road to an uncertain destination that has already used up its spare tire. The cash reserves of people have been eaten up by the recent market volatility.

Investors are impatient and they are also desperate for the 'next big thing,' and they are not paying attention to the fact that the 'next big thing' can be an economic crisis that they have created by being very irresponsible with their power.

As long as there's political uncertainty around the energy space, stock prices will come down.

Because in the New Normal you are more worried about the return of your capital, not return on your capital.

The global economy is unruly.

When wealth concentrates at the very top, it can inflate unstable bubbles that threaten the economy.

Unregulated derivatives like credit default swaps threaten our regulated markets, or indeed our economy without any Federal agency knowing about it.

The rise in the price of gold is a sign that capitalism has stumbled.

Markets don't like instability, investors shy away from uncertainty, and consumer confidence goes down in difficult times.

The consumer is going through a period around the world of uncertainty - whether geopolitical uncertainty, economic uncertainty - and that makes them a little nervous as well.

Uncertainty is bad for business.

I just don't trust any of it. Every time I read something about how there's been another ridiculous climb of the Dow Jones, there's a part of me that goes, “This can't be good.” None of this is real money. You know what I mean? It's not like there's actually more of anything. It's just ideas. When people are getting richer and richer but they're not actually producing anything, it can't end well.

Who would you trust right now? Which bank would you trust? Which investment would you trust? Do you really want to put your money; do you want to suffer more of these losses that we just had? You know, these volatility that we see is just unexplainable by any rational standards. Nobody has any clue about how to explain this, and nobody wants to experience that. So, we hold more money back, we don't necessarily want to invest in the market and by default, people are saving more.

The inborn instability of capitalism has been part of the history of the system for several hundred years, including recurrent speculative episodes. There should be no doubt in anyone's mind that we're now having another one of those speculative episodes.

I'm not sure that the current value of the NASDAQ is justified, but I'm not sure that it isn't.

The short-term international capital market is shrunken and erratic, and cannot be relied upon to cushion the effects of tendencies to disequilibrium in the balance of payments.

Nobody really knows what the market is going to do, but it sure looks like we are going to have a lot more volatility.

Capitalism is chronically unstable.Boom and bust has always marked capitalism in the United States. There were panics in 1785, 1791, 1819, 1857, 1869, 1873, 1907, 1929 and 1987.In economies and politics, as in war, an astonishing number of people die, like the man on the railway crossing, defending their right of way. This is a poorly developed instinct in Switzerland. No country so firmly avows the principles of private enterprise but in few have the practical concessions to socialism been more numerous and varied.