I always believed in animal spirits. It's not their existence

Hear the words of Alan Greenspan, master of markets and interpreter of human will: “I always believed in animal spirits. It’s not their existence that is new. It’s the fact that they are not random events, but actually replicate in-bred qualities of human nature which create those animal spirits.” At first, these words may seem confined to the world of finance, yet in truth they touch the very core of what drives men and women in all their endeavors: the restless, instinctive forces that lie beneath reason, shaping choices, fueling ambition, and at times plunging entire nations into triumph or into ruin.

The phrase animal spirits is not of Greenspan’s invention. It echoes from the writings of John Maynard Keynes, who described it as the surge of optimism and fear, of confidence and despair, that guides economic activity beyond the reach of logic alone. Yet Greenspan gives it deeper weight: these forces are not random storms, but patterns arising from human nature itself. They are part of the same instincts that guided our ancestors to hunt, to gather, to build, to fear, and to hope. They are the primal undercurrents that flow through the heart of civilization.

To say they are “not random” is to declare that history itself is shaped by recurring cycles of emotion: waves of greed, tides of panic, surges of ambition, and crashes of despair. Consider the stock market booms and busts across the centuries. The South Sea Bubble of the 18th century, when men poured fortunes into a scheme destined for collapse, was not merely a failure of mathematics but a triumph of desire and illusion. The Great Depression, too, was magnified by fear that fed upon itself, pulling men into despair even when reason might have counseled otherwise. These were not accidents—they were the faces of animal spirits, reflections of the human nature that dwells within us all.

And yet, these same animal spirits are not only destructive. They also kindle creation. The daring that builds empires, the faith that launches new inventions, the courage that moves explorers into uncharted seas—these too arise from the same primal fire. Without such instinct, humanity would stagnate, bound by logic that seeks only safety. It is the balance of reason and spirit, of calculation and passion, that drives both the markets of gold and the markets of dreams. Greenspan’s words remind us: do not despise these forces, for they are woven into the very fabric of our being.

History gives us noble examples. When Thomas Edison pursued the light bulb, reason told him of a thousand failures. Yet it was not pure logic that kept him pressing forward, but an inner flame, a conviction beyond numbers. This was his animal spirit—the drive to achieve what had not yet been proven possible. Likewise, the Wright brothers faced ridicule and doubt, yet their confidence, born not of charts but of vision, lifted humanity into the skies. Here we see the dual truth: the same force that can fuel speculative frenzy can also inspire greatness that reshapes the world.

The lesson, then, is clear: acknowledge the animal spirits within you. Do not deny them, for they are part of your human nature. But neither let them rule unchecked, for their energy, left untamed, can destroy as easily as it can build. The wise are those who can harness passion with reason, who can feel the fire yet guide it with discipline. Just as a rider must not kill the horse’s spirit but must master it to reach his destination, so too must man learn to govern his own instincts.

Practical actions follow from this truth: when confidence surges, temper it with caution; when fear grips, steady yourself with reason. In every decision, look within and ask: Is this choice guided by wisdom, or driven only by the restless spirit of impulse? Learn from history, for the cycles of mankind repeat, and by studying the past you may better master the future.

Remember always: the animal spirits are neither curse nor blessing, but power—power born of human nature. They are the winds that fill our sails and the storms that threaten to sink us. To ignore them is folly; to surrender to them is peril; but to harness them with wisdom is greatness. This is the teaching hidden in Greenspan’s words, a teaching not only for markets, but for all who seek to live with both passion and balance in the journey of life.