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Bubbles in sentence

660 examples of Bubbles in a sentence

But all bubbles eventually burst.
As households and investors borrow cheaply to invest in rapidly appreciating housing and fixed assets, bubbles form and then burst, spurring crises.
A relatively tight monetary policy, strengthened financial supervision, and regulation aimed at supporting a broader deleveraging drive and containing housing prices also stoke concern that real-estate and other asset bubbles will soon burst, though the PBOC adjusted its policy stance toward loosening a bit.
Extended periods without new data facilitate – indeed, foster – the unrestrained growth of speculative-theory bubbles.
The challenge for China is to manage prudently the growth in housing supply needed to satisfy the demand requirements of urbanization, without fostering excessive speculation and dangerous asset bubbles.
The asset bubbles that broke Japan and the United States are widely presumed to pose the same threat in China.
But this has undermined productivity, encouraged speculative activity, fueled asset bubbles, and exacerbated income and wealth inequality.
To be sure, China may have a strong tendency to create bubbles, partly because people in a fast-growing economy become less risk-averse.
Thirty years of stable growth without serious crises have made people less aware of the negative consequences of overheating and bubbles.
There are also several special factors that may make China vulnerable to bubbles.
The good news is that Chinese policymakers are vigilant and prepared to bear down on incipient bubbles – sometimes with unpopular interventions such as the recent monetary moves.
The consequences of burst bubbles in Japan in the 1980’s and in the United States last year are powerful reasons why China’s government has acted with such determination, while the legacy of a functioning centralized system may explain why it has proven capable of doing so decisively.
No one has proven able to eliminate bubbles in economies where markets are allowed to function.
And bubbles in other markets (for example, China, Hong Kong, Singapore, Canada, Switzerland, France, Sweden, Norway, Australia, New Zealand) pose a new risk, as their collapse would drag down home prices.
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.
Sadly, nowadays, things as disparate as highly paid executives, the Enron and Parmalat scandals, contested mergers and acquisitions, stock market volatility, "junk bonds," and asset-price bubbles are all lumped together under the snide heading "cowboy capitalism."
Most credit bubbles this large have ended up causing a hard economic landing, and China’s economy is unlikely to escape unscathed, particularly as reforms to rebalance growth from high savings and fixed investment to private consumption are likely to be implemented too slowly, given the powerful interests aligned against them.
Consumers made huge bets on two bubbles – housing and credit.
Reckless monetary and regulatory policies turned the humble abode into an ATM, allowing families to extract dollars from bubbles and live beyond their means.
Both bubbles have long since burst, and US households are now dealing with post-bubble financial devastation – namely, underwater assets, record-high debt, and profound shortages of savings.
Even the much-heralded shale-gas revolution is a lot of hype – similar to the gold rushes and stock bubbles of the past.
This flawed approach allowed China’s housing prices to continue to rise steadily, fueling major housing bubbles, especially in first-tier cities.
Production costs – in terms of labor, resources, regulation, and infrastructure – have been rising domestically, while consumption bubbles in the West have burst.
For the financial supply chain, the key is to address systemic risks and realign incentives in order to induce investors to support the engines of real economic growth, rather than the creation of asset bubbles.
Thus, during periods of expansion, when banks are eager to fund ever more risky borrowers, the reserve ratio rises, curbing potentially disruptive asset bubbles or overinvestment.
To be sure, the financial crisis had different catalysts in different countries, including subprime loans, real-estate bubbles, sovereign debt, and economic downturns that affected small and medium-size enterprises.
The formation of large bubbles in recent decades was partly a consequence of the commonness and incorrigibility of the belief that no such thing could ever happen.
We repeatedly rescued bubbles, and never deliberately burst them.
Conventional monetary policies, designed to fulfill the Fed’s dual mandate of price stability and full employment, are ill-equipped to cope with the systemic risks of asset and credit bubbles, to say nothing of the balance-sheet recessions that ensue after such bubbles burst.
Assets bubbles will not disappear, but they will be less likely to be turbocharged by leverage.
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