Bubbles
in sentence
660 examples of Bubbles in a sentence
And, like last time, the bigger the
bubbles
become, the nastier the collision with reality will be.
The relatively few professional economists who warned of the current crisis were people, it seems, who not only read the scholarly economics literature, but also brought into play more personal judgment: intuitive comparisons with past historical episodes; conclusions about speculative trading, price bubbles, and the stability of confidence; evaluations of the moral purposes of economic actors; and impressions that complacency had set in, lulling watchdogs to sleep.
The massive injection of liquidity into China’s economy has contributed to rising debt, especially among local governments and firms, while fueling massive real-estate bubbles, and resulting in significant excess capacity.
Davies disagrees, as do Shiller and Roach, but they fail to explain how growth can be accelerated if monetary policy is tightened to avoid credit
bubbles.
Today’s low interest-rate environment is causing a flood of financial flows to emerging economies, raising the risk of inflation and asset
bubbles.
There was no denying it: the emerging-market capital explosion was over, and the credit and asset
bubbles
that it had fueled were in danger of imploding.
Clearly, Bitcoin and other cryptocurrencies represent the mother of all bubbles, which explains why every human being I met between Thanksgiving and Christmas of 2017 asked me if they should buy them.
But, as a consequence of this narrow approach, policymakers disregarded the formation of asset- and commodity-price bubbles, and overlooked the resulting banking-sector instability.
The increase in private- and public-sector leverage and the related asset and credit
bubbles
are partly the result of inequality.
As he argued, unregulated capitalism can lead to regular bouts of over-capacity, under-consumption, and the recurrence of destructive financial crises, fueled by credit
bubbles
and asset-price booms and busts.
But the unprecedented speed and scale of China’s monetary expansion remain a concern, given that it could still trigger high inflation and lead to asset-price bubbles, debt growth, and capital outflows.
This could take the air out of incipient assets
bubbles
that might be forming and ease pressures on institutional investors who are struggling to find the yield they need to meet their insurance and pension commitments.
All of this would raise expectations among financial-market actors that central banks and governments would always step in to smooth out credit
bubbles
and mitigate their consequences, even if that meant accumulating more debt.
Since early 2010, in order to contain inflation and property bubbles, the Chinese government has tightened monetary policy.
Perhaps the biggest setback hit in September 2008, when it became clear that central banks that had been relying on IT had not paid enough attention to asset-price
bubbles.
After all, the same thing happened when asset-price
bubbles
ended in crashes in the United States in 1929, Japan in 1990, and Thailand and Korea in 1997.
While the lack of response to asset
bubbles
was probably IT’s biggest failing, another major setback was inappropriate responses to supply shocks and terms-of-trade shocks.
Massive capital inflows caused real-estate and stock-market
bubbles
in the US and parts of Europe.
But it is inducing massive capital flows to emerging markets, where they are generating asset-price
bubbles.
He gave a fascinating talk about his adventures, complete with clips of him floating around, catching
bubbles
in his mouth, and so on.
Indeed, with financial
bubbles
growing, the nature of financial risk morphing, inequality worsening, and non-traditional – and in some cases extreme – political forces continuing to gain traction, the calming influence of unconventional monetary policies is being stretched to its limits.
But such capital inflows threaten exchange-rate overvaluation, rising current-account deficits, and asset-price bubbles, all of which have in the past led to crises in these economies.
As Premier Wen Jiabao recently emphasized, China must now undertake comprehensive measures to control mounting inflation, growing asset bubbles, and an overheating economy.
From asset
bubbles
and excess leverage to currency suppression and productivity impairment, Japan’s experience – with lost decades now stretching to a quarter-century – is testament to all that can go wrong in large and wealthy economies.
The danger all along has been that open-ended unconventional monetary easing would fail to achieve traction in the real economy, and would inject excess liquidity into US and global financial markets that could lead to asset bubbles, reckless risk taking, and the next crisis.
In search of higher yields, investors took that liquidity – largely in the form of short-term speculative capital (“hot” money) – to emerging markets, putting upward pressure on their exchange rates and fueling the risk of asset
bubbles.
But, instead of working incrementally to create strong, targeted regulations, they performed an abrupt about-face, warning investors about risky
bubbles
and declaring war on margin finance.
The Fed might also consider policy in 1924-1927, when low interest rates fueled stock-market and real-estate bubbles, or 2003-2005, when interest rates were held down in the face of serious financial imbalances.
Bubbles
ForeverNEW HAVEN – You might think that we have been living in a post-bubble world since the collapse in 2006 of the biggest-ever worldwide real-estate bubble and the end of a major worldwide stock-market bubble the following year.
But talk of
bubbles
keeps reappearing – new or continuing housing
bubbles
in many countries, a new global stock-market bubble, a long-term bond-market bubble in the United States and other countries, an oil-price bubble, a gold bubble, and so on.
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