Crash
in sentence
943 examples of Crash in a sentence
The lesson that confidence-building measures averted a
crash
in 2000 was precisely the lesson that the financial system did not need to learn.
And the hope of long-time US Federal Reserve Chairman Alan Greenspan that monetary easing could clean up the mess in the aftermath of such a
crash
proved wrong.
What we are experiencing today is the natural repercussion of the implosion of centrist politics, owing to a crisis of global capitalism in which a financial
crash
led to a Great Recession and then to today’s Great Deflation.
Then came the
crash
of 2008, which in the US and Europe produced a massive excess supply of both money and people.
The reason why recovery from the
crash
of 2007-2008 has been so anemic is straightforward.
By 1998, Russia already had achieved a critical mass of markets and private enterprise, while the financial
crash
of that year worked like a catharsis, forcing the government to abolish enterprise subsidies that underpinned a devastating budget deficit of some 9% of GDP.
First, they will say the immediate response of the US Federal Reserve and the Department of the Treasury to the crisis in 2007 was first-rate, whereas the response immediately after the stock-market
crash
of 1929 was fifth-rate, at best.
The aftermath of the 2007-2008 financial
crash
was painful, to be sure; but it did not become a repeat of the Great Depression, in terms of falling output and employment.
What was stunning was how the Fed, under Greenspan’s leadership, stood by as the credit boom gathered steam, barreling toward a subsequent
crash.
China’s stock-market
crash
has been attributed to a variety of factors.
But while margin financing, enabled by online platforms, amplified the risks of volatility, it alone could not cause such a
crash.
The fear is that the recent stock-market
crash
may have spooked the government, causing it to slow the pace of reform, including efforts to open up China’s capital account.
Whether reform momentum is maintained will depend largely on whether the government recognizes that the
crash
was the result of a regulatory failure, or remains adamant that it was the work of some nefarious foreign force, determined to destroy the Chinese economy.
Judging by China’s reform progress in recent years, and the current government’s repeated promises to deepen those efforts, I am confident that the country’s leaders will respond to the recent
crash
by reaffirming the financial-reform agenda.
Ignoring the lessons of the recent
crash
would be a serious mistake – one that China’s pragmatic and tenacious authorities will be determined to avoid.
Not surprisingly, the preference has been for transfers, which, until the 2008 financial crash, took the form of cross-border private-sector lending to governments and banks.
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.
This was followed by a second crash, another boom from 1932 to 1937, and a third
crash.
Rapid normalization – like that undertaken in the space of a year in 1994 – would
crash
asset markets and risk leading to a hard economic landing.
The exit from the Fed’s QE and zero-interest-rate policies will be treacherous: Exiting too fast will
crash
the real economy, while exiting too slowly will first create a huge bubble and then
crash
the financial system.
After the 2008
crash
and the so-called Great Recession, years of tepid growth laid the groundwork for a political upheaval in 2016.
Yet, after the crash, the Obama administration had little stomach for the medicine that former President Franklin D. Roosevelt had prescribed to address problems of such magnitude.
There were no protective mechanisms to prevent a global liquidity glut from developing, and then, in combination with US regulatory failings, from producing a spectacular housing boom and
crash.
It is no secret that Europe is in the midst of an internal economic crisis – a result of the euro saddling southern eurozone countries with high inflation prior to the 2008 financial crash, which severely reduced their competitiveness within the euro system.
In addition, the 1987
crash
occurred against the backdrop of monetary-policy tightening by the US Federal Reserve.
The 1987
crash
also occurred in a period of dollar weakness.
First, the Fed, under its brand-new chairman, Alan Greenspan, loosened monetary policy, reassuring investors that the
crash
would not create serious liquidity problems.
Second, the
crash
did not destabilize systemically important financial institutions.
What, then, would be the effects of an analogous
crash
today?
This
crash
in prices of risky financial assets would not overly concern the rest of us were it not for the havoc that it has wrought on the price system, which is sending a peculiar message to the real economy.
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