Bubble
in sentence
914 examples of Bubble in a sentence
Many firms during the
bubble
had no hope of making enough money in the short run to justify their sky-high stock prices.
Both suffered massive financial crises – rooted in egregious economic mismanagement in Greece and a massive asset-price
bubble
in Ireland – which were amplified by the eurozone’s structural shortcomings.
In Ireland and Spain, private savings collapsed, and a housing
bubble
fueled excessive consumption, while in Greece, Portugal, Cyprus, and Italy, it was excessive fiscal deficits that exacerbated external imbalances.
But that discontent continues to
bubble
beneath the surface – manifested on social media and in political absenteeism – and it shows no signs of waning.
Except for the interlude following the collapse of the dot-com
bubble
in 2001, growth in the UK and continental Europe was supercharged by the oodles of paper assets, functioning as quasi-money, produced by banks.
It was only then, once the
bubble
had burst, that the eurozone’s draconian constraints began to bite.
European economies – including Germany – were riding a giant global economic and financial
bubble.
It’s been three years since the
bubble
broke, and more than two since Lehman Brothers’ collapse.
If there is pain to be borne, the brunt of it should be felt by those responsible for the crisis, and those who benefited most from the
bubble
that preceded it.
But if the idea of the countercyclical buffer is now generally accepted, what of the “nuclear option” to prick a bubble: Is it justifiable to increase interest rates in response to a credit boom, even though the inflation rate might still be below target?
In fact, a telltale sign of a
bubble
is that second-rate developers suddenly are able to earn billions.
In January 2015, the central bank sought to protect financial institutions from another catastrophic
bubble
by restricting their lending to high-risk borrowers.
Would-be borrowers do indeed face genuine challenges as a result of these regulations; but that is nothing compared to the pain that a collapsing
bubble
would cause.
France’s basic problem, like that of the countries most affected by the crisis, is that the wave of cheap credit that the euro’s introduction made possible fueled an inflationary
bubble
that robbed it of its competitiveness.
The occasion was Brazil’s decision to impose a 2% tax on short-term capital inflows to prevent a speculative
bubble
and further appreciation of its currency.
Two years ago, when shockwaves from the collapse of the US housing
bubble
crashed onto European shores, these political leaders reacted with apparent vigor, making themselves rather popular for a while.
Even when things look more difficult in the US, as when inflation began to run higher recently and productivity growth lowered, the stock market sell-off that followed did not burst the overall market
bubble.
In the United States, newspapers and magazines are trumpeting reports in the last few months that the decade-long boom in home prices may be at an end, and that the
bubble
may be bursting.
This was and is the result of an asset
bubble
fueled by excessive leverage and by the massive transparency issues associated with complex securities and derivatives that were supposed to spread risk, but instead mainly increased the systemic risk already present with excess debt.
Absent the willingness of large developing countries to run trade surpluses and high savings rates relative to investment, the asset
bubble
in the US – leading to a rise in domestic consumption and a fall in the savings rate – would have triggered inflation and higher interest rates.
In 1996, after then-Fed Chair Allan Greenspan raised the possibility that investors were suffering from “irrational exuberance,” he was criticized so sharply that he never dared to say anything like that again, even in the middle of the Internet
bubble.
Savings in the household sector declined and leveled off at about zero, as low interest rates led to over-leveraging, an asset bubble, and an illusory increase in wealth.
They do not have a corresponding name for the behavior of the housing market, because, historically, its prices (correcting for inflation) have not generally gone up very much on average, until the post-2000
bubble.
But the subsequent increase in official fixed-asset investment – which rose by 32% in 2009 alone – delayed structural reforms, while over-capacity and a real-estate
bubble
became even larger and more deeply entrenched problems.
National leaders must speak out, and they must match their words with concrete actions, to help signal to the public that the speculative
bubble
cannot be expected to continue.
Is it a speculative
bubble?
Bitcoin and its ecosystem are still maturing, and only time will tell if current price levels reflect a speculative
bubble.
The same incompetence is at the root of his failure to deflate the property
bubble.
After all, Hong Kong is facing a clear and present danger that the property
bubble
will end in tears for many.
Big data and artificial intelligence allow micro-targeting of communication so that the information people receive is limited to a “filter bubble” of the like-minded.
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