Sentences with phrase «asset bubbles»

Will live in an age of asset bubbles rather than true economic growth.

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

But the real problem with low interest rates is they create asset bubbles which eventually pop.

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.

We are mindful that when a big asset bubble finally bursts, the ramifications are large, and the time to resolution is usually long.

It is the same issue other asset bubbles will eventually have to face and it is looming ever larger.

They are happy to let asset bubbles develop, because that is not what they are employed to handle.

If such investments do not exist, there's an all - to - good chance that the capital flows into a wasteful, damaging asset bubble.

Others wonder why economists and policymakers can not prevent, or even spot, most asset bubbles before they become dangerous.

That difference of opinion may partly be explained by understanding what type of asset bubble bitcoin could be.

There are asset bubbles everywhere caused by global central bank manipulation and the Canadian housing market is no different.

It has, in turn, created asset bubbles that could explode into an even greater crisis the next time around.

However, given how slow the recovery has been, the cycle could end up extending further (potentially creating even bigger asset bubbles?).

«Borrowing money for free and having easy access to capital and leverage (for big entities) is the fuel asset bubbles crave,» says the paper.

Soros has a comment that applies here as well: «when interest rates are low we have conditions for asset bubbles to develop.

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.»

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.

Compared with Other Bubbles, Bitcoin Is almost off the Charts Five - year price momentum of bitcoin vs. historic asset bubbles; priced monthly; logarithmic scale

For example, a reduction in capital inflows can deflate asset bubbles and so discourage consumption through wealth effects, or such a reduction can lower consumption by raising interest rates on consumer credit, or even by encouraging stronger consumer lending standards.

Investors are no longer overly optimistic... This is a small correction in the great Bernanke Asset Bubble.

Following a peak, asset prices will tend to expand even while money supply growth begins to slow down; it is only after the slowdown has become very pronounced that asset bubbles begin to run into difficulties.

One person who pointed out the dangerous asset bubble developing in 2005 was economist Robert Shiller, whose composite Case - Shiller index, created in the 1990s, studies real estate prices nationally and in key urban areas.

With asset bubble concerns in equity and property markets, stalled CMBS 2.0 issuances and pending regulatory changes that will affect conventional real estate lenders later in 2016, the first quarter of this year saw meaningful gyrations in real estate capital markets that caused lenders of all stripes to re-assess their appetites for risk.

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.»

The Japanese asset bubble of the 1980s burst in late 1989 and a quarter century later, the Nikkei is still at only half the level it was.

Some argue that monetary policy should «lean against» incipient asset bubbles.

The Congressional Budget Office defines asset bubbles as: «An economic development in which the price of a class of physical or financial assets (such as houses or securities) rises to a level that appears to be unsustainable and well above the assets» value as determined by economic fundamentals.

Even if economists and the Fed chairperson struggle to identify them, there are plausible reasons to explain why asset bubbles last so long.

Jon Hilsenrath noted the seeming irony: «In August 1999, as the tech - stock bubble was worsening, Alan Greenspan stood before central - banking colleagues in Jackson Hole, Wyo., and argued it wasn't the central bank's job to prevent asset bubbles.

Twenty years later, many pundits worry that irrational exuberance is driving more asset bubbles.

Historically, large asset bubbles in the United States have formed after periods of unusually low interest rates.

Shiller is right that perfect equilibrium microeconomics can not explain asset bubbles, but bubbles might be explained by combining three other classic postulates: the law of demand, opportunity costs and the subjective theory of value.

Away from private equity investing — which is just another of the many asset bubbles spawned by the Fed's near - zero interest rate and money printing policy (by the way, the Fed unbeknownst to many is still printing money)-- Wall Street has been busy stuffing a plethora of high - fee generating asset - backed «investment» securities into the market.

Many investors are questioning whether Bitcoin and other cryptocurrencies are the latest asset bubble at risk of bursting.

Federal Reserve Long Term U.S. Credit Boom Chart By bailing out short - term credit cycles, the Fed created a big asset bubble $ $ Apr 28, 2012 Quantitative Deleting: The Fed's $ 400 Billi...

Even more devastating, wages» share of GDP has been declining (with brief interruptions during asset bubbles) for 46 years.

He was an early advocate of unconventional monetary policies and of macroprudential measures to keep asset bubbles in check.

Summers said central bankers should stay humble about their ability to spot and / or moderate asset bubbles, either with interest rates or other tools like leverage limits on particular sectors and other so - called «macroprudential» measures.

Fifth, asset bubbles occur more easily when it is difficult to short the assets.

Asset bubbles often come to an end when the basic belief system is contradicted by events.

20 years ago, Alan Greenspan gave his famous «irrational exuberance» speech, but asset bubbles take a long time to pop.

Behind Germany and ahead of some of the oil producers, it runs the largest current account surplus in the world, which means that it is exporting its excess savings in a world that has nowhere to put the money, and so the world must respond either with speculative asset bubbles, unproductive investment, debt - fueled consumption binges or unemployment.