Bubble
in sentence
914 examples of Bubble in a sentence
As he put it in a 2010 interview with John Cassidy for The New Yorker, “I don’t even know what a
bubble
means.
In the second edition of my book Irrational Exuberance, I tried to give a better definition of a
bubble.
A “speculative bubble,” I wrote then, is “a situation in which news of price increases spurs investor enthusiasm, which spreads by psychological contagion from person to person, in the process amplifying stories that might justify the price increase.”
Implicit in this definition is a suggestion about why it is so difficult for “smart money” to profit by betting against bubbles: the psychological contagion promotes a mindset that justifies the price increases, so that participation in the
bubble
might be called almost rational.
That is a good enough story to drive a housing
bubble.
One problem with the word
bubble
is that it creates a mental picture of an expanding soap bubble, which is destined to pop suddenly and irrevocably.
Similarly, a new speculative
bubble
can appear anywhere if a new story about the economy appears, and if it has enough narrative strength to spark a new contagion of investor thinking.
It may be too soon to say that many risky assets have reached
bubble
levels, and that leverage and risk-taking in financial markets is becoming excessive.
But a slow exit risks creating a credit and asset
bubble
as large as the previous one, if not larger.
Either the Fed pursues the first goal by keeping rates low for longer and normalizing them very slowly, in which case a huge credit and asset
bubble
would emerge in due course; or the Fed focuses on preventing financial instability and increases the policy rate much faster than weak growth and high unemployment would otherwise warrant, thereby halting an already-sluggish recovery.
The exit from the Fed’s QE and zero-interest-rate policies will be treacherous: Exiting too fast will crash the real economy, while exiting too slowly will first create a huge
bubble
and then crash the financial system.
The run-up in stock market prices in recent years was partly a financial bubble, and there may be a price to pay for it.
Following the onset of the recession that followed the 2008 global financial crisis, China’s policymakers spent seven years replacing waning demand for their country’s net exports with a homegrown investment bubble, inflated by local governments’ aggressive land sales.
In the US, the collapse of the tech
bubble
in 2000 entailed a $4 trillion loss in market capitalization.
In the US, for example, new securities laws were passed following the stock market crash of 1929, and the Sarbanes-Oxley Act was adopted in 2002, in the immediate aftermath of the collapse of the Internet
bubble
and the Enron and WorldCom scandals.
Even if Japan had never experienced a real-estate and stock-market bubble, the meteoric rise of its giant neighbor China would have been a huge challenge.
But Syriza’s inability to escape its radical
bubble
does not explain why it formed a coalition with the far-right Independent Greeks, when it could have governed with one of the centrist pro-European parties.
Singapore’s social-media startup
Bubble
Motion (recently rebranded as Bubbly) generated more than 20 million users in its first two years – nearly double the number that Facebook or Twitter accrued in the same period in their history.
Talk about a
bubble
mentality.
The finance sector did not look kindly on those who pointed out that the New Economy
bubble
of the late 1990s, or the credit expansion that preceded the 2008 global financial crisis, had created a large febezzle.
Such practices, illegal as practiced by Bernard Madoff, are functionally equivalent to what happens during an asset-price
bubble.
In the developed world, mechanical ventilators provide the respiratory support of
bubble
CPAP.
But mechanical ventilators are far too expensive for developing-country health systems, leaving millions of patients in much of the Global South without access to life-saving
bubble
CPAP.
But with a combination of medical expertise and inventive thinking, Jobayer Chisti, my colleague at the health research organization icddr,b, has developed a simple and affordable alternative to
bubble
CPAP using materials that are readily available even in poor countries, such as empty shampoo bottles and plastic tubing.
In fact, just 4% of infants died when treated with the improvised
bubble
CPAP device, compared with 15% of those receiving low-flow oxygen therapy.
The case for further testing of Chisti’s alternative
bubble
CPAP delivery system – not to mention its implementation in places where alternative treatments are not available – is clear.
If future trials demonstrate similar high efficacy, low-cost
bubble
CPAP could become the standard of care for pneumonia in resource-deprived settings, potentially saving thousands of lives every year.
But when the
bubble
bursts, the NINJAs cannot service their debt and builders go into bankruptcy.
The result has not been investment in productive assets that boost employment in the US, as the Fed intended, but rather a run-up in global commodity prices and a growing
bubble
in the housing markets of the major emerging economies.
Indeed, the intermittent over-valuation of entire economic sectors – recall the dot-com
bubble
from a decade ago – indicates that financial markets are often excessively focused on the long term.
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