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Bubbles in sentence

660 examples of Bubbles in a sentence

Fama, the most important proponent of the “efficient markets hypothesis,” denies that bubbles exist.
Implicit in this definition is a suggestion about why it is so difficult for “smart money” to profit by betting against bubbles: the psychological contagion promotes a mindset that justifies the price increases, so that participation in the bubble might be called almost rational.
Because bubbles are essentially social-psychological phenomena, they are, by their very nature, difficult to control.
Regulatory action since the financial crisis might diminish bubbles in the future.
But public fear of bubbles may also enhance psychological contagion, fueling even more self-fulfilling prophecies.
But speculative bubbles are not so easily ended; indeed, they may deflate somewhat, as the story changes, and then reflate.
We have distorted that history by thinking of bubbles as a period of dramatic price growth, followed by a sudden turning point and a major and definitive crash.
Speculative bubbles do not end like a short story, novel, or play.
But the reality is that credit and asset/equity bubbles are likely to form in the next two years, owing to loose US monetary policy.
Last time, interest rates were too low for too long (2001-2004), and the subsequent rate normalization was too slow, inflating huge bubbles in credit, housing, and equity markets.
Some at the Fed – Chairman Ben Bernanke and Vice Chair Janet Yellen – argue that policymakers can pursue both goals: the Fed will raise interest rates slowly to provide economic stability (strong income and employment growth and low inflation) while preventing financial instability (credit and asset bubbles stemming from high liquidity and low interest rates) by using macro-prudential supervision and regulation of the financial system.
If the exit cannot be navigated successfully, a dovish Fed is more likely to blow bubbles.
At the end of the 1980s, however, the yen strengthened, Japanese asset bubbles in real estate and equities burst, and Japan’s growth rate plummeted.
The collapse of asset bubbles in the 1990’s left Japan’s financial system and private sector saddled with a huge debt overhang.
Moreover, unlimited quantitative easing by the Bank of Japan, the Federal Reserve, and the European Central Bank also increases the risk of volatile capital flows and asset bubbles in Asian emerging economies.
Chinese policymakers have raised serious concerns about the growing risks of inflation and property bubbles.
But the rapid run-up in equity prices also carries considerable risks – namely, the possibility that the financial sector will misuse the newfound liquidity to finance more speculative investment in asset bubbles, while supporting old industries with excess capacity.
In an environment of excess debt and inadequate savings, wealth effects have done very little to ameliorate the balance-sheet recession that clobbered US households when the property and credit bubbles burst.
The resulting build-up of private and public debt in over-spending countries became unmanageable when housing bubbles burst (Ireland and Spain) and current-account deficits, fiscal gaps, or both became unsustainable throughout the eurozone's periphery.
Simply put, most Americans didn’t share in what many called the Great Moderation, but was really the Mother of All Bubbles.
The traditional view, notably shared by former US Federal Reserve Chairman Alan Greenspan, is that any attempt to prick financial bubbles in advance is doomed to failure.
We know as much about bubbles as we do about inflation, Caruana argues, and central banks’ need to move interest rates for reasons other than the short-term control of consumer-price trends should be explicitly recognized.
It’s no secret that the collapse of asset bubbles carries massive financial and social costs.
Housing bubbles are not difficult to spot; on the contrary, they typically make headlines long before they pop.
Bubbles in Ireland, Spain, the United Kingdom, and the United States collapsed after the financial crisis that erupted in 2008.
The answer is simple: while the bubbles are inflating, many people benefit.
Because bubbles tend to inflate gradually over a number of years before their abrupt collapse, letting them run a little further seems politically astute.
In any case, Ireland’s experience with housing bubbles carries a deeper lesson – one that virtually everyone has missed.
A housing system that can so easily produce such large and damaging bubbles is fundamentally flawed.
Buying dollars increases the domestic base money supply, risking inflation and asset-price bubbles.
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