Sentences with phrase «financial asset bubble»

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.»
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.»
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.
The first set of costs stems from the risk that the current monetary policy regime could distort asset allocations and lead to renewed financial asset bubbles.
This obligation tends to be under - appreciated in the midst of financial asset bubbles when recency bias blunts the desire to sacrifice the potential for further gains in exchange for protection against losses.

Not exact matches

Before the financial crisis, most every economy was doing well, albeit on a bubble of debt and inflated asset prices.
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 U.K. takes it so seriously that it invested the Bank of England with the power to deflate any asset - price bubbles that it identifies as threats to the financial system.
Republican critics say they fear that by flooding the financial system with money, the Fed has inflated stock and real estate prices and could create asset bubbles that could pop with dangerous consequences for the economy.
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.
China has been trying to get its unruly financial sector under control, worried that asset bubbles and its enormous unofficial — or «shadow» — banking system could threaten its economy, the world's second largest after the United States».
But you've also talked about the need to stabilize financial markets, even «leaning» against asset price bubbles.
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.
Nouriel Roubini, one of a handful of economists said to have foreseen the financial crisis, counts 10 things that could cause trouble, if they aren't doing so already, including the bursting of asset - price bubbles, unusually weak business investment, and extreme income inequality.
The U.S. financial system is experiencing an asset «bubble» that is unprecedented in history.
So that's what happened last time around and we now have a bubble in sovereign bond and those are the most senior asset class in the financial system.
The Fed switched to a policy of intentionally creating asset bubbles because the alternative would be to let the financial system reset by allowing the debt to clear.
Richard: Great insight as always, and last time we talked about the commercial real estate bubble and we thought today we'd do a special focus on the millennial generation and how financial repression through repressed interest rates and quantitative easing has resulted in asset bubbles that ultimately have affected the millennial generation in terms of their values, how they look at the economy and life and the way they're conducting themselves in the economy: what they're facing in terms of the housing market and the job situation.
Last time we talked about the commercial real estate bubble and we thought today we'd do a special focus on the millennial generation and how financial repression through repressed interest rates and quantitative easing has resulted in asset bubbles that ultimately have affected the millennial generation in terms of their values, how they look at the economy and life and the way they're conducting themselves in the economy: what they're facing in terms of the housing market and the job situation.
To illustrate this, just take a look at how our economy has changed since financial institutions inflated asset prices in the housing market until the bubble burst in 2007.
Monetary policy since the Great Depression that started in 1929 has aimed at re-inflating the economy after downturns, fueling the post-2001 financial bubble and, since 2008, Quantitative Easing to provide banks with liquidity to support asset prices.
A small but growing number of countries now have legal requirements for institutional investors to report on how their investment policies and performance are affected by environmental factors, including South Africa and, prospectively, the EU.36 Concern about the risks of a «carbon bubble» — that highly valued fossil fuel assets and investments could be devalued or «stranded» under future, more stringent climate policies — prompted G20 Finance Ministers and Central Bank Governors in April 2015 to ask the Financial Stability Board in Basel to convene an inquiry into how the financial sector can take account of climate - related Financial Stability Board in Basel to convene an inquiry into how the financial sector can take account of climate - related financial sector can take account of climate - related issues.37
By administering testosterone to traders before they trade financial assets for real money, testosterone directly increases the size and persistence of stock market bubbles.
No one knows how long the current government - and Central Banks - driven bubble in bonds and financial assets will last.
[98][99] US housing and financial assets dramatically declined in value after the housing bubble burst.
alternative assets, Argo Group, asset managers, bankruptcy, BDCs, business development companies, Colony Financial, de-leveraging, distressed assets, distressed consumers, distressed investing, Fortress Investment Group, income / dividend bubble, JZ Capital Partners, litigation funding, private equity funds
baby boomers, banks, Bernanke, budget deficit, capital ratios, de-leveraging, debt monetization, Debt / GDP Ratio, ECB, Europe, European sovereign debt crisis, Fed, financial crisis, fiscal deficits, Flub - Med, GDP growth, Hunt brothers, income / dividend bubble, inflation, Japan, multiplier effect, Occupy Wall Street, politicians, quantitative easing, real assets, risk aversion, savings rate, stagflation, US, Volcker
Prof. Siegel provides financial data from 1802 through 2007 including: the relative performance of asset classes, relative risk of each asset class & style, IPO performance, bubble economies & aftermath, fundamental measures as predictors of future returns, monetary policy, business cycles, technical analysis, calendar anomalies, etc., etc., etc..
The global asset bubble financial economy has made many leveraged bets on expensive assets under the assumption the global central banks will always keep rates low and if we have a correction bail investors out.
One of the common threads of every financial or asset bubble throughout human history is that they all have a repudiation phase — a moment where all the lies that had been built up alongside the excess are aired in public.
And even if we do continue on our same fossil - using path, the assets may be creating what analysts are calling a «carbon bubble» in financial markets.
The think - thanks research to date on «unburnable carbon», the «carbon bubble», and stranded assets has ignited a new global debate on how to align the financial system with the energy transition to a low carbon future.
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.
So the darker hopes arise — maybe a particularly furious El Niño or a «carbon bubble» where the financial markets realize that renewables have become more scalable and economical, leading to a run on fossil - fuel assets and a «generational crash» of the global economy that, through great suffering, buys us more time and forces change.
Through pioneering analysis into the «carbon bubble» and «stranded assets», Carbon Tracker investigates the financial risks faced by high - carbon investments in the face of a rapid energy transition.
Yet, whether these assets will become stranded or actually will lead to carbon bubble, the risk increasingly has garnered attention from news outlets such as the BBC, the Financial Times and The Economist.
And all this brings increasing recognition by investors that the carbon bubble and stranded assets are serious financial risks, which in turn reinforces the growing power of NGO campaigns against coal and CSG along with their fossil fuel divestment campaign.
Many bigwigs in the financial industry have stated that Bitcoin may be a real asset, but that it is undoubtedly in a bubble right now.
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The volatility of crypto - assets has prompted an intense debate about whether they are a bubble, just another fad, or a revolution equivalent to the advent of the internet that will disrupt the financial sector and eventually replace fiat currencies.
«Ownership of virtual currency is very risky and full of speculation because there is no authority responsible,» the central banker continues, «there is no official administrator, there is no underlying asset underlying virtual currency price and trading value is very volatile so vulnerable to the risk bubble and prone to be used as a means of washing money and financing of terrorism, so that it can affect the stability of the financial system and harm the public.
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