Bubble
in sentence
914 examples of Bubble in a sentence
Letting some of the air out of this housing bubble, before too much pressure builds up, will require improved management of China’s rapid urbanization – and not just in the four first-tier cities.
But if central banks don’t find a clear exit strategy from policies that double or triple the monetary base, eventually either goods-price inflation or another dangerous asset and credit
bubble
(or both) will ensue.
Low rates, in turn, provided the lubrication needed to finance the asset
bubble
in the US and elsewhere.
But Japan’s wealthiest people, such as entrepreneurs, medical doctors, and lawyers, are nowadays less willing or financially able to continue patronizing the sport, particularly since the collapse of Japan’s asset
bubble
in the early 1990’s.
The decline in the WES indicator during the last two quarters was the sharpest since 2001, when the stock market
bubble
burst.
But then the US Federal Reserve hid these weaknesses by engineering a housing
bubble
that led to a consumption boom.
But the recent price surge looks suspiciously like a bubble, with the increase only partly justified by economic fundamentals.
Even that rise was partly a bubble, which collapsed in the second half of 2008, when – after oil reached $145, killing global growth –the world economy fell into recession.
Another downside risk is that the dollar-funded carry trade may unravel, crashing the global asset
bubble
that it, together with the wave of monetary liquidity, has caused.
And, since the carry trade and the wave of liquidity are causing a global asset bubble, some of gold’s recent rise is also bubble-driven, with herding behavior and “momentum trading” by investors pushing gold higher and higher.
The bigger the bubble, the greater the collapse.
Yet, because the usual response – socialization of bank losses, with a privileged few keeping the profits and bonuses they accrued while the
bubble
was growing – creates moral hazard, the cycle is likely to be repeated.
Understandably, Chinese officials worry about
bubble
trouble.
The test might come from a shock – especially in view of the rising risk of a hot war (with North Korea) or a trade war (between the US and China) or a collapsing asset
bubble
(think Bitcoin).
The recent market turmoil has started the deflation of the global asset
bubble
wrought by QE, though the expansion of unconventional monetary policies may feed it for a while longer.
For more than half that time – say, 85 years – it has been accepted doctrine that markets are also not to be trusted even in normal times, lest doing so lead to a liquidity squeeze or to an inflationary
bubble.
The real estate
bubble
inflated and collapsed partly because millions of Americans borrowed more than they could afford to repay – and knew it.
A quarter of the labor force and half of Spain’s youth are unemployed, reflecting the country’s loss of competitiveness in the wake of the real-estate
bubble
inflated by cheap euro credit in the pre-crisis period.
But the comparison is misleading, because 2007 was the peak of a credit
bubble
that led to a lot of wasteful investment.
But by the spring of 2015, the market’s boom was looking a lot like a credit-fueled
bubble.
These factors have inspired some China watchers to regard the country’s economy as a bubble, if not to predict a hard landing in 2010.
But a tendency toward a
bubble
need not become a reality.
In any case, the new policies should reassure those who feared that China’s central government either would simply watch the
bubble
inflate or that it lacked a sufficiently independent macroeconomic policy to intervene.
As such, they will not fuel a
bubble
by leading to immediate over-capacity in industry.
So is a Chinese
bubble
still possible?
The current combination of exceptionally low yields and high prices suggests that much of the world is in a bond-market bubble, and when it bursts in coming years, a period of higher long-term interest rates and lower long-term bond prices will follow.
The Anti-History BoysBERKELEY – If you asked a modern economic historian like me why the world is currently in the grips of a financial crisis and a deep economic downturn, I would tell you that this is the latest episode in a long history of similar bubbles, crashes, crises, and recessions that date back at least to the canal-building
bubble
of the early 1820’s, the 1825-1826 failure of Pole, Thornton ampamp;Co, and the subsequent first industrial recession in Britain.
The economic crisis in southern Europe stemmed from an inflationary credit
bubble
that resulted from the absence of interest-rate premiums, and that robbed the afflicted countries of their competitiveness.
Officials would liquidate the low-return investments that form the legacy of the late-1980s asset-price
bubble
and then clear away the wreckage left behind in the financial system.
The puncturing of Japan's asset
bubble
of the late 1980s merely brought these chickens home to roost.
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