Sentences with phrase «credit bubble»
A "credit bubble" refers to a situation where there is an excessive amount of borrowing and lending, leading to a rapid increase in the overall level of debt. This can happen when lenders become overly optimistic about the ability of borrowers to repay their loans, resulting in a surge of loan approvals. However, if borrowers are unable to meet their repayment obligations, it can cause a collapse in the financial system and have negative impacts on the economy. Full definition
Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve.
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Its dependence on domestic credit bubbles, corruption, short - cuts and stolen intellectual property will dramatically shorten the time it has to create a sustainable domestic energy supply.
These packages of high - yield debt were a major culprit behind the last credit bubble.
Many of those jobs created in the last cycle were artificial in the sense that they were created by an obvious unsustainable credit bubble.
It didn't capture the headlines the way the housing bubble and credit bubble did.
Most credit bubbles result from short - term lending funding long - term assets.
The advance looks quite good so far from a technical perspective, but unfortunately the same could be said of the 2003 to 2007 rally, which eventually fell prey to the bursting of the mortgage credit bubble in the US.
These courses describe how the global economy was blown into an enormous credit bubble during the decades following the breakdown of the Bretton Woods International Monetary System.
The deflation of the global credit bubble since 2008 has led credit - related investments to underperform US stocks.
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In 2007 something went wrong with the Ponzi racket certain big institutions had going, in which they enriched themselves at the expense of the public through an officially supported commercial credit bubble.
Beer, Wine, & Food Brick and Mortar California Daydreamin» Canada Cars, Trucks & Crashes Central Banks China Commercial Property Companies & Markets Consumers Credit Bubble Cryptos Debtor Nation Energy The French Debacle Teutonic Dilemmas Spain Federal Reserve Financial Repression Housing Bubble 2 Inflation & Devaluation Information Age Japan's Juggle Jobs Transportation Wall St. Shenanigans
Read also China Blowing Even Bigger Credit Bubble Puts World at Greater Risk, Says Global Strategist
Sometimes the art world actually lags behind society, and the bursting of its preachy - self - indulgence bubble follows rather than leads the collapse of the economy's credit bubble by a couple of years.
All were purchased after credit bubble imploded from 2011 to present.
All indications are the Chinese credit bubble implosion may be about to get underway, with Fitch flashing the warning lights with a fresh downgrade.
The latest phase of Canada's household credit bubble, it seems, is in cars.
The financial sector, large and small, is doing great in terms of profitability (and that's before all their goodies in the tax cuts), credit is freely flowing, and while there's always speculation afoot in financial markets, there are no large and potentially destabilizing credit bubbles.
The international gold exchange standard crumbled over the succeeding years as it was unable to sustain the excessive credit bubble that had been lent into existence.
«We have a colossal credit bubble in the world.
Understandably so: due to the close correlation between the level of forex reserves and credit and money supply growth in China, a rapid depletion of reserves is likely to impact the country's giant credit bubble.
The result was a temporary worldwide credit bubble, followed by a wave of loan defaults, falling housing prices, banking losses and a dramatic tightening of bank lending.
Academics and serious economists were dogmatically dedicated to the efficient market hypothesis — contributing to the inflation of an unprecedented credit bubble between 2001 and 2007.
A decade later he warned of the developing credit bubble and its devastating collapse and then called the market bottom in March of 2009 when he wrote an article for GMO clients titled Reinvesting When Terrified.
The first recorded credit bubble popped in 594 B.C. Athens.
Dr. Mayer has been active in advising policymakers on the financial crisis, testifying six times before committees of the U.S. Senate and House of Representatives, writing on the causes of the housing and credit bubbles for the Financial Crisis Inquiry Commission, and authoring numerous op - ed articles on housing and credit markets.
We had plenty of credit bubbles and busts before securitization come on this scene.
Based on the non-fiction novel by Michael Lewis «The Big Short: Inside the Doomsday Machine,» the film tells the story of the build - up of the housing and credit bubble during the 2000s that led to the discovery of mass subprime fraud and the financial crisis of 2007 - 2010.
Going into 2008, credit - related assets outperformed US stocks because of the global credit bubble.
The inflation - fueled and cyclical bull market instigated by the commercial credit bubble that ended in 2007 lasted roughly 5 years.
In October, the Economist published The Next Big Credit Bubble, and soon thereafter TIME Magazine published College Graduates Face Record - High Debt In the Age of Record - High Unemployment which is essentially saying the same thing.
Just this week, when a party is needed to challenge the Housing Bill, shine a light on the UK's shady relationship with Saudi Arabia and highlight the worrying consumer credit bubble, Labour are nowhere to be seen.
The question is whether Morneau's new regulations, which are intended to cool property markets, may unintentionally create other forms of pent - up and potentially contagious economic risk: a credit bubble on top of the real estate bubble, as it were.
«The Big Short,» based on the Michael Lewis novel about the housing and credit bubble that led to the 2008 financial crisis — and the few who saw it coming — came out in limited release over the weekend.
The criticism is familiar: Through low interest rates and trillions of dollars in bond buying, the Fed has created a credit bubble of low - cost cash coursing through the economy and, more particularly, risk assets like stocks and corporate bonds.
He basically said that there was a credit bubble and that the «the piper will be paid and the bubble will burst.»
Most investors will readily agree that the global credit bubble is deflating.
Former US Treasury secretary Hank Paulson said in 2014: «When the credit bubble burst in 2008, the damage was devastating.
There thus was no explanation of how a credit bubble could inflate real estate prices and then collapse into a negative equity disaster.
He was also the first economist to identify the Irish boom in the 2000s as nothing more than a credit bubble, warning of its collapse and the consequences for the country.
He was also the first economist to identify the Irish boom as nothing more than a credit bubble, warning of its collapse and the consequences for the country.
Many lenders have eased their requirements for auto loans, for example, says Roberts, though lending standards remain far higher than during the 2005 - 06 peak of the credit bubble.
He didn't see the economy about ready to crater under the credit bubble in ’07 and» 08.