"Most of the time common stocks are subject to irrational and excessive price fluctuations in both directions as the consequence of the ingrained tendency of most people to speculate or gamble... to give way to hope, fear and greed."
"The volume of credit depends upon three factors: the desire to borrow, the ability to lend and the desire to lend."
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Source: Storage and Stability. Book by Benjamin Graham, Part III, Chapter XIII, The Reservoir Plan and Credit Control, p. 154, 1937.
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