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.
Not exact matches
Once again, there is minimal demand for autos and housing, and that is partly because the market is still saturated with both
of these credit - sensitive big - ticket items after an unprecedented credit and consumer
bubble that went absolutely parabolic in the seven years prior to the
collapse in the financial markets an
asset values.
Japan's infamous «Lost Decade» was supposed to refer to the stagnant economic period from 1991 until 2000, after the
collapse of the
asset price
bubble in Japanese housing and stocks.
Launched while Japan was in a recession following the 1991
collapse of the Japanese
asset price
bubble, this generation Taurus was exported to Japan in limited numbers, and sold at Japanese auto dealerships called Autorama (a joint venture with Mazda), where the sedan and wagon versions with right - hand driving positions until 1997.
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.
On the one hand, the average funding ratio (
assets as a percentage
of the present value
of future obligations) is below 80 % because
of inadequate contributions by sponsors (states and municipalities) and poor investment returns since the
collapse of the technology
bubble in 2000.
Once the financial impact
of stranded
assets are factored in, the carbon
bubble will
collapse with large financial consequences for fossil fuel companies and their owners.