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  • Any onset of increased investor caution elevates risk premiums and, as a consequence, lowers asset values and promotes the liquidation of the debt that supported higher asset prices, ... This is the reason that history has not dealt kindly with the aftermath of protracted periods of low risk premiums.

    "Greenspan Chides Investors". Speech at a Fed symposium, www.nytimes.com. August 27, 2005.
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