Sentences with phrase «lending in a declining market»

Not exact matches

Concurrent with this orgy of public debt, the State encourages massive expansion of private credit via fractional lending, low bank reserves, and other forms of leverage, in a vain attempt to stimulate demand in an economy burdened with overcapacity, declining employment, marginal return on capital and saturated markets.

Just as real estate lending fuels land speculation, so the withdrawal of such credit leaves property markets to decline, sometimes with a crash, as occurred in Japan after 1990 when its financial bubble burst.

The adjustment in the Australian housing market during 2004 should assist prospects for sustainable economic growth, with the decline in house prices and new lending during much of the year alleviating the overheating which had previously been apparent in that part of the economy.

Moreover, a number of features of the US sub-prime market which have contributed to its current problems are not present in Australia, including large teaser rates, a marked decline in lending standards, and an originate and distribute model where the originator has a reduced incentive to care about the quality of the loan written.

The commercial lending market started to get more competitive (as evident in declining yields), so many banks have turned to vertical industries to maintain and even accelerate commercial loan growth rates.

Thus far, the decline in real estate prices has been linked to everything from the Wall Street crash and tightening credit markets to lax lending practices by Fannie Mae and Freddie Mac and the resulting low interest rates that contributed to artificial inflation of home prices.

The United States housing market was adversely impacted beginning in 2006 by the combination of a number of factors, including but not limited to more stringent lending guidelines, increased unemployment, and an overall macroeconomic decline.