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.
Not exact matches
The latest change in tone may also reflect an additional concern - that low interest rates are fostering financial instability
by promoting
bubbles in asset prices and stimulating excessive
credit creation.
The aim of bank marketing departments — backed
by the Obama administration — is to steer
credit to re-inflate the
bubble and thus save financial balance sheets from their current negative equity position.
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.
MH: All
bubbles are inflated
by credit, and the Federal Reserve under Allan Greenspan created a huge amount of
credit that was lent out to almost anybody for any purpose.
To explain, I point out that if the Fed had done nothing in response to the bust of 2000 - 2002 then there would have been a severe recession, but the economy would probably have made a full recovery
by 2004 and there would have been no mortgage -
credit / housing - investment
bubble and therefore no 2007 - 2008 crisis.
The Bush plan to privatize Social Security is basically Pinochet's and Thatcher's «pension fund capitalism» expanded to orchestrate
bubbles by inflating asset prices on
credit.
This development is particularly troubling since the housing
bubble's height was stimulated in large part
by sub-prime lending to homeowners with marginal
credit.
Still,
by applying moral suasion, Mr. Carney was attempting to keep a
credit bubble from inflating to dangerous proportions.
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.
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.
The number of comics shops peaked in 1993 because of easy
credit offered
by the dozen distributors at the time — and while it caused sales figures to skyrocket, it was no more indicative of health than any other
bubble market.
Controlling
bubbles can be done
by controlling
credit, and that is what the Fed tries to do — control
credit, which is money in our era.
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Without strong US job growth in this growth cycle and driven
by rising US consumer debt obligations and a US housing value
bubble, the US then lead the world into another financial or «
credit crunch» crisis that was far worse than the dot com crash.
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Thus, the
credit bubble, facilitated
by the Fed and the banking regulators.