Sentences with phrase «credit bubble in»

«We have a colossal credit bubble in the world.

The main idea is this: enough people benefit from credit bubbles in the short run that it is impossible to oppose credit bubbles once they get started.

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.

Although there may not be a bond bubble, with investors starved for yield, Gundlach predicts a potential bubble could form in credit risk as investors increase their leverage on riskier debt securities like junk bonds and emerging market debt.

The latest phase of Canada's household credit bubble, it seems, is in cars.

For some economists, the surge in home ownership, house prices and credit without strong income growth equals only one thing: a bubble.

«Credit card debt statistics, in particular, reflect consumer sentiment and can foretell overleveraging bubbles that may trigger constriction in credit markets,» the reportCredit card debt statistics, in particular, reflect consumer sentiment and can foretell overleveraging bubbles that may trigger constriction in credit markets,» the reportcredit markets,» the report says.

Former US Treasury secretary Hank Paulson said in 2014: «When the credit bubble burst in 2008, the damage was devastating.

One of the arguments that I've made is that we had the mother of all housing bubbles, we had a vast erosion of credit standards, we had really easy money, we had the Bush tax cuts plus the Iraq war, and all that got us in the precrisis period was adequate growth.

So this first line of explanation stresses the factors that are common to all financial bubbles — in particular the combination of cheap credit and a general increase in the appetite for risk.

«History tells us that credit booms lead to bubbles and eventual crisis,» Jason Daw, a strategist specialized in Asia at Societe Generale, wrote in a recent report.

The recent stock market and real estate bubbles are much like pyramid schemes in the sense that what is bidding up stock and property prices is an exponential inflow of new money from pension plans and mutual funds (for shares) and bank credit (for real estate).

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.

I am not arguing that these alternative instruments will be successful in countering asset price bubbles and credit imbalances, because I think bubbles are a permanent feature of the landscape resulting from entrenched human behaviour.

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.

Just as real estate lending fuels land speculation, so the withdrawal of such credit leaves property markets to decline, sometimes with a crash, as occurred in Japan after 1990 when its financial bubble burst.

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.

Bubbles crashing + end of cheap credit + massive credit freeze + growing distrust in unicorns + fear of the future + millions of people losing their homes +?

Success in altering a growth dynamic while deflating a housing bubble and avoiding a credit crunch will be one of the key global economic events to watch over the next 12 to 24 months.

What is inter alia noteworthy here, is that all it took for the last two asset bubbles to burst (pre-bitcoin era) was a slowdown in the growth of money and credit (the two are intertwined most of the time).

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 bubblIn 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 bubblin which they enriched themselves at the expense of the public through an officially supported commercial credit bubble.

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.

He lost $ 25,000 during the housing bubble and once owed $ 10,000 in credit card debt.

Easy credit, which enables households to buy houses with prices far beyond their financial ability, has played an integral role in recent housing bubbles.

Meanwhile, we look like we are blowing a fixed - income duration bubble right across the credit spectrum that will result in big losses when rates come up down the road.

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.

It seems that in a command economy where non-performing loans never have to be recognised as such, it is possible for a massive credit - fueled investment bubble to deflate gradually.

Bolser said his hypothesis was that the Fed engineered the bursting of the credit bubble as Greenspan and current Federal Reserve Chairman Ben Bernanke began to raise rates, starting in June 2004 through a series of 16 rate increases, to a high of 5 percent in May 2006.

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.

Nor did he note the fact that some 80 % of the tax is in land - price gains — gains that speculators made «in their sleep» while Mr. Greenspan at the Federal Reserve was flooding the real estate bubble with credit.

In the last few years we've had a housing bubble, a credit bubble, runaway government spending, soaring gas prices, a global recession, high unemployment, the risk of a U.S. debt default, a fiscal crisis in Europe, and the threat of severe inflatioIn the last few years we've had a housing bubble, a credit bubble, runaway government spending, soaring gas prices, a global recession, high unemployment, the risk of a U.S. debt default, a fiscal crisis in Europe, and the threat of severe inflatioin Europe, and the threat of severe inflation.

As you can see in the chart above, the VIX index moved steadily higher as the market approached the peak of the late 1990s technology bubble, calmed down during the steady growth period of 2003 - 2007, then spiked during the 2008 credit crisis and in the latter half of 2011.

Well, the last time Americans had a president who was psychologically «programmed» to ignore facts that didn't agree with his beliefs, the USA ended up wasting $ 1T in an illegal war to «liberate» 100's of billions of barrels of Iraqi oil (as many as 1.2 M people died in the process due to violence, disease & starvation resulting from the conflict), nearly $ 5T was added to the U.S. federal debt, a man with experience as the Judges and Stewards Commissioner for the International Arabian Horse Association was put in charge of the Federal Emergency Management Agency (FEMA), the U.S. subprime credit «bubble» expanded hugely & then imploded, wiping out some $ 14T in global wealth & destroying millions of jobs, etc..

The Big Short, an upcoming film about the housing and credit bubble that led to the financial crisis of 2007 - 08, is lining up one of the better casts in recent...

Labour did indeed create 2.5 m jobs, but it took 13 years, not 5, and were brought about at the price of a credit bubble, a housing boom, and a rise of 0.8 m jobs in the public sector — none of which will exist in the next few years.

When it comes to this crop of nominees, there seems to be a movement towards bigger, stronger, more popular casting and films like Adam McKay's The Big Short and Alejandro González Iñárritu's The Revenant — the former a dramatic comedy centered around the collapse of the housing and credit bubble of 2008, the latter a brooding take on life on the frontier in 19th century America — epitomize star - studded casts.

The Big Short is based on a true story about four outsiders in the finance who predicted the credit and housing bubble collapse of the late 2000s.

Don't get me started on all the desperate ways our wonderful government (and the banking cartel it's in cahoots with) are trying to keep the credit bubble we're in from deflating further.

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.

Lenders recognize that credit applicants don't operate in a bubble, and that outside events often affect a person's ability to pay.

The bubble was a combination of (a) teaser rates on option ARMs which were like financial time bombs, (b) liar loans in which the rules of good mortgage underwriting (20 % down, 28/36 ratios) went out the window, (C) people at rating agencies who decided that if one pools enough junk loans into one bond, it's magically AAA, and (D) Credit default swaps which encouraged these bad loans, and when they collapsed a number of people walked away with billions of dollars.

The first of several market bubbles to burst in this first decade of the 21st century, which has paved the way for subsequent housing and credit bubbles.

FHA guidelines have always allowed lower down payments and looser credit qualifications than conventional financing; but during the freewheeling time before the housing bubble burst in 2003 - 2007, conventional loans were just as easy to obtain and many had zero - down - payment options so FHA loans were less popular.

IndyMac's aggressive growth strategy, use of Alt - A and other nontraditional loan products, insufficient underwriting, credit concentrations in residential real estate in the California and Florida markets — states, alongside Nevada and Arizona, where the housing bubble was most pronounced — and heavy reliance on costly funds borrowed from a Federal Home Loan Bank (FHLB) and from brokered deposits, led to its demise when the mortgage market declined in 2007.

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.

In the tech bubble, many parties extended vendor credit because there were big profits to be made in the futurIn the tech bubble, many parties extended vendor credit because there were big profits to be made in the futurin the future.

Easy credit was one of the biggest reasons for the housing bubble, now the pendulum has swung in the other direction.

And, of course, the response to the credit crunch, and further (ongoing) action in relation to the current Eurozone crisis, are sowing the seeds for the next great bubble and crash...

The tech bubble crash at the turn of the century triggered an easing that directly created the housing bubble in the middle of the last decade, which then crashed, but the subsequent easing deferred the crash of the credit bubble until 2007/08.

We keep hearing those daunting news, the student loan bubble is about to burst, tuition prices are higher than ever, student loan debt now surpasses credit card debt, the U.S. currently holds over $ 1.2 TRILLION in collective student loan debt....