Sentences with phrase «asset bubble does»

He added that «We as central bankers need not be concerned if a collapsing financial asset bubble does not threaten to impair the real economy, its production, jobs and price stability.»

Adding, «We as central bankers need not be concerned if a collapsing financial asset bubble does not threaten to impair the real economy, its production, jobs and price stability.»

In other words, if the collapse of a financial asset bubble does not create systematic financial and economic risk, the Federal Reserve need not intervene.

In dealing with the continued weak economy, our leaders are so determined not to repeat the perceived mistakes of the 1930s that they are risking policies with possibly far worse consequences designed by the same people at the Fed who ran policy with the short term view that asset bubbles don't matter because the fallout can be managed after they pop.

Not exact matches

Before the financial crisis, most every economy was doing well, albeit on a bubble of debt and inflated asset prices.

Cameron Winklevoss told CNBC that «[Bitcoin] is a multitrillion - dollar asset — I don't know how long it takes to get there,» while UBS's Paul Donovan argued bitcoin is simply a bubble that should be ignored.

Lower interest rates will do nothing but inflate asset - price bubbles if there is reduced demand for goods and services.

Many Chinese commentators think the Plaza Accord of 1985, reached in New York by finance ministers from five developed countries, did not solve many problems in the world and was partly to blame for the Japanese asset bubble and subsequent slowdown.

What all that money sloshing around the system would do, more likely, is encourage the formation of another asset bubble.

Alas, the viability of bitcoin and other crypto assets does not depend on whether they are in a bubble state or not.

We don't expect the ECB to change course, but we think perhaps there will be an extension of quantitative easing and bubbles in assets that are interest - rate sensitive.

The creation of transitory and fragile asset - price bubbles is not built on labor nor do they bring rising living standards in their wake.

I just don't see asset markets as having an on / off state — bubble or no bubble.

Nouriel Roubini, one of a handful of economists said to have foreseen the financial crisis, counts 10 things that could cause trouble, if they aren't doing so already, including the bursting of asset - price bubbles, unusually weak business investment, and extreme income inequality.

Aside from acceptable «basis» risk between the stocks we hold long and the indices we use to hedge, and perhaps 1 % of assets in option time - premium at any given time as a result of staggering our strikes to provide a stronger defense, we don't consider various speculative bubbles as threats to our own returns.

Now, just because an asset is immersed in an investment bubble doesn't mean that it should be avoided.

It didn't stimulate a surging economy, but it did stimulate asset bubbles.

It did flood back into the more riskier asset of Stocks and into the «treasuries and bond bubble».

Even if the Fed does raise rates, we agree with Albert's colleague Kit Jukes that «the economic cycle will be brought down by asset bubbles bursting long before «tight» policy has any effect.

It did not comment on asset bubbles in the bond market.

Richard: Great insight as always, and last time we talked about the commercial real estate bubble and we thought today we'd do a special focus on the millennial generation and how financial repression through repressed interest rates and quantitative easing has resulted in asset bubbles that ultimately have affected the millennial generation in terms of their values, how they look at the economy and life and the way they're conducting themselves in the economy: what they're facing in terms of the housing market and the job situation.

Last time we talked about the commercial real estate bubble and we thought today we'd do a special focus on the millennial generation and how financial repression through repressed interest rates and quantitative easing has resulted in asset bubbles that ultimately have affected the millennial generation in terms of their values, how they look at the economy and life and the way they're conducting themselves in the economy: what they're facing in terms of the housing market and the job situation.

While most people agree that asset bubbles are a real phenomenon, they don't always agree on whether a specified asset bubble exists at a given time.

He does not share some foreign central bankers» belief that their job is to defend against excessive asset - price inflation: «No sensible policy,» he maintains, «could have prevented the housing bubble.»

It would do this without making housing even more unaffordable or blowing up dangerous and unsustainable asset bubbles.

Rapid money supply growth with no consumer price inflation can only really occur within the confines of an asset price bubble, or else, where does the money go?

If were going to have fiat money, do it in such a way that bubbles do not develop, which means not caring about the effects of policy on risky asset markets.

That doesn't happen, and the asset bubble begins to unwind leading to debt problems.

And how do you handle a real estate bubble in your asset mix?

Real estate is a great asset to use for diversification because it doesn't always move with stocks or bonds (although you do have to watch out for bubbles and down markets, just as you do with any other investment asset class).

We should make note that Greenspan followed his comment about irrational exuberance by quickly adding that central bankers need not be concerned with the collapse of an asset bubble if it does not impair the real economy.

the European periphery is a bubble («The Euro crisis is not over... the European economies are not going to change for the better for years to come despite all the cheating and breaking of laws»), Value investors need to venture to Russia («when you look at today's opportunity set, you're left with a set of assets where nothing looks attractive from a valuation point of view») or buy gold mining stocks -LRB-» The down cycle could be much bigger than anybody believes if the market realizes that all the actions taken in recent years do not work.»)

Another coherent definition of a bubble has less to do with a dynamic price path and ongoing resale for gain, but rather there may be a (temporary) segmentation across classes of asset market buyers.

Yes, I agree it's not genuine growth, it is an asset bubble etc etc, doesn't help much though when you look at poor returns at the end of a year and realise that the doom - and - gloom picture was being wilfully ignored by those who rode the indices (perhaps in blissful ignorance) to huge profits while other saps spend time arguing about getting the economics dead right, and end up on the moral high ground but no returns to show for it.

All that their policy does is produce an asset bubble, or price inflation in goods and services.

Plenty of assets are currently expensive, but you couldn't call them bubbles by that definition (my wife and I do pay a sub-2 % rental yield on the Sydney apartment we live in, but you could still assume enough rental growth to — just — give you something mildly sensible).

And even if we do continue on our same fossil - using path, the assets may be creating what analysts are calling a «carbon bubble» in financial markets.

Unfortunately, that's a distinction that some other supporters of the carbon asset bubble meme don't seem to make, particularly with regard to oil and natural gas.

While North America's largest oil and gas company did announce for the first time that climate change is a reality, the company does not mention the potential risks of a carbon asset bubble.

«I don't think it's going to be a bubble that's just going to burst and everyone is going to lose their money, but I think it's going to be that all the coins and all the assets with very little use or value are going to get sorted out.

Despite the fears of many experts about the formation of a bubble in the market of cryptocurrencies, Russians do not intend to reduce their investments in this type of asset.

Long term, directionally, it is a multitrillion - dollar asset — I don't know how long it takes to get there.We've seen the bubble term thrown around and it's just not the right way to look at this.

Alas, the viability of bitcoin and other crypto assets does not depend on whether they are in a bubble state or not.

The variables affecting the stock market and employment are many, and we usually don't see the asset bubbles until after they have popped.