Bubbles
in sentence
660 examples of Bubbles in a sentence
Still, they do have aspects of bubbles: collectivization was indeed a plan for prosperity with a contagion of popular excitement, however misguided it looks in retrospect.
Yes, there are legitimate technical concerns that QE is distorting asset prices, but bursting
bubbles
simply are not the main risk now.
But if, for whatever reason, the global economy fails to take off, we will have to reconcile ourselves to a long period of mediocre growth in which cheap capital depresses yields, drives up asset prices, inflates bubbles, and seeks out trophy assets.
From asset
bubbles
and a dysfunctional financial system to currency suppression and monetary-policy blunders, Japan has been in many respects the laboratory of our future.
First and foremost, financial authorities must accept responsibility for preventing asset
bubbles
from growing too big.
Former United States Federal Reserve Chairman Alan Greenspan and others have argued that if markets can’t recognize bubbles, neither can regulators.
Second, controlling asset
bubbles
requires control not only of the money supply, but also of the availability of credit.
Similarly, financial authorities should vary the loan-to-value ratio on commercial and residential mortgages for risk-weighting purposes in order to forestall real estate
bubbles.
Bubbles
recur, especially in real estate, because this reflexive relationship is repeatedly ignored.
Creating new
bubbles
is not our government’s idea of development.
Like all bubbles, this one is bound to burst.
That helped Germany and France, but it also inflated real-estate
bubbles
in Spain and Ireland.
The recent collapse of those
bubbles
caused sharp downturns in economic activity and substantial increases in unemployment in both countries.
Meanwhile, two speculative
bubbles
– in the real estate market and in mortgages – have become grafted upon each other and now dominate economic activity in the US.
What US authorities should do is strengthen protections for the overnight money market for US Treasuries, which aren’t subject to panics and bubbles, while rolling back most of the legal advantages enjoyed by short-term, overnight financing of mortgage-backed securities.
As monetary tightening reveals the vulnerabilities in the real economy, the collapse of asset-price
bubbles
will trigger another economic crisis – one that could be even more severe than the last, because we have built up a tolerance to our strongest macroeconomic medications.
This is effective in stemming upward exchange-rate pressure, but it feeds the beast: it exacerbates overheating in already fast-growing emerging markets, causing inflation and leading to excessive credit growth, which can fuel dangerous asset
bubbles.
A sixth option – especially where a country has carried out partially sterilized intervention to prevent excessive currency appreciation – is to reduce the risk of credit and asset
bubbles
by imposing prudential supervision of the financial system.
The crashes that follow financial
bubbles
cause unemployment and suffering among people of all ethnicities and genders.
Housing
bubbles
and investments in dubious projects result in a waste of resources and a misallocation of capital that ultimately dampens potential growth.
With deflating housing bubbles, high oil prices, and a strong euro already impeding growth, the ECB is virtually ensuring a sharp euro-zone slowdown.
Cheap money with limited investment outlets now risks fueling property
bubbles
and industrial overcapacity.
Without fundamental change, China faces slower economic growth, inadequate job creation and innovation, and popping
bubbles.
Each side would rather preach to its own audience, accessible within media
bubbles
where there is little demand for genuine discussion of opposing views.
But the credit flooding into these countries created inflationary bubbles, which burst when the 2008 financial crisis in the United States spread to Europe.
Perhaps technology “experts” could code algorithms that burst such
bubbles.
But, as Summers and others point out, lax monetary policies may trigger asset bubbles, and prolonged fiscal stimulus may end in a debt crisis.
The oversight was not due to the lack of models of bubbles, asymmetric information, distorted incentives, or bank runs.
There is now a serious risk of a systemic meltdown in US financial markets as huge credit and asset
bubbles
collapse.
Unconventional monetary policies like quantitative easing may inflate a new generation of asset bubbles, but the underlying problem – negative returns to new investment – will not have been solved by the time the next crash comes.
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