Sheets
in sentence
728 examples of Sheets in a sentence
The politics of this approach will be difficult, particularly in the rich countries; but, structured properly, concerted structural reform could help to restore growth, which would feed back into healthier budgets, more jobs, better balance sheets, and less financial risk.
If asset-price bubbles develop, balance
sheets
may look sound individually, but the entire network of interlinked asset-liability structures will become increasingly dependent on overvalued collateral, and thus vulnerable to financial contagion.
Those tools include caps, linked to borrowers’ characteristics, on loan-to-value ratios; direct limits on currency and maturity mismatches in financial institutions’ balance sheets; limits on their balance sheets’ interconnectedness; and minimum reserve requirements for specific financial instruments.
Rebuilding the depleted balance
sheets
of the banking system is the right way to go.
Similarly, if fiscal stimulus has a muted effect because the recipients of the income are saving to restore damaged household balance sheets, it is not clear we want to discount the accelerated deleveraging benefit, even if it shows up in domestic demand only later.
These are highly leveraged businesses, typically funding their balance
sheets
with no more than 5% equity (and thus 95% debt).
In fact, the current crisis has even put Japan, which has spent nearly two decades in the doldrums, in a position of relative strength, given its large currency reserves and the clean-up of its major banks’ balance
sheets.
Few parts of Asia are structurally exposed to the credit implosion, and the balance
sheets
of Asian banks and companies are on the whole cleaner than their counterparts elsewhere.
With households focused on repairing severely damaged balance sheets, inflation-adjusted private consumption has expanded at an anemic 0.5% average annual rate over the past four years.
Indeed, because Brazilian corporates have borrowed extensively in dollars (a consequence of sky-high local interest rates), it could well be that an appreciating currency is expansionary in the short-run: companies can clean up their balance
sheets
without having to shed workers or curtail investment.
Many European banks’ balance
sheets
are now as contaminated as those of American banks, and no one is sure who is holding – or hiding – the junk, and how to value it.
Those who had argued for the free market’s virtue of “transparency” ended up creating financial systems so opaque that banks could not make sense of their own balance
sheets.
Hobbled by severe damage to private and public-sector balance sheets, and with policy interest rates at or near zero, post-bubble economies have been mired in a classic “liquidity trap.”
Instead, they must concentrate on reinforcing the common currency’s inherent strengths, not least by formulating a credible plan to clean up the bad loans on Italian and Portuguese banks’ balance
sheets.
Second, this is a crisis of solvency, not just liquidity, but true deleveraging has not really started, because private losses and debts of households, financial institutions, and even corporations are not being reduced, but rather socialized and put on government balance
sheets.
Many European banks may not have understood this, yet they still shied away from revealing these dubious investments on their balance
sheets.
This spring will show the necessary write-offs in the annual balance sheets, but the full truth will not become known before the 2008 balance
sheets
are published in the spring of 2009.
With a cyclical mindset and fiscal space exhausted, a new round of quantitative easing (QE2) might be defended as a strategy for mitigating the tail risk of another downturn in asset markets (mainly housing) and households’ balance
sheets
– and with it the possibility of a deflationary dynamic.
That panic subsided – and gold prices started to drift down again – after US banks were subjected to “stress tests,” America’s Troubled Asset Relief Program further backstopped the financial system by removing bad assets from banks’ balance sheets, and the global economy gradually bottomed out.
Indeed, a key challenge in financing infrastructure investment in emerging economies is that many of the commercial banks (mainly European) that had a significant presence in the past have withdrawn – and are unlikely to return until they repair their crisis-hit balance
sheets
and build capital to meet strengthened regulatory standards.
If eurozone growth wildly outperforms expectations in the next few years, banks’ balance
sheets
would strengthen and German taxpayers’ pockets would deepen.
The banks, having been recapitalized only to the extent necessary to keep them afloat, still have weak balance
sheets.
Alas, there is an important twist today that wasn’t in play back then –central banks’ swollen balance
sheets.
Yet when central banks’ balance
sheets
finally start to shrink, asset-dependent economies will once again be in peril.
And the risks are likely to be far more serious today than a decade ago, owing not only to the overhang of swollen central bank balance sheets, but also to the overvaluation of assets.
This, in turn, would further erode banks’ balance
sheets
and constrain credit creation – the sovereign-bank doom loop that we have heard so much about in recent years.
Some alleged that these unconventional monetary policies – and the accompanying ballooning of central banks’ balance
sheets
– were a form of debasement of fiat currencies.
Instead – and this is the fourth aberration – inflation is still too low and falling in advanced economies, despite central banks’ unconventional policies and surging balance
sheets.
The Treasury and Federal Reserve are adding preferred stock to the balance
sheets
of the US mortgage giants Fannie Mae and FHLBC and the insurance giant AIG in the hope of shoring up their capital cushions and lowering their borrowing costs so that they can buy more mortgages.
The energy sector and air and rail transport are still dominated by state-owned near-monopolies, whose balance
sheets
are in trouble amid rapidly rising costs.
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