Sentences with phrase «financial panic»

A financial panic is a situation where many people suddenly become scared and worried about their money or investments. This can cause them to sell off their assets or withdraw their money from banks, leading to a chaotic and unstable situation in the financial system. Full definition
Companies scoring between the range of 1,000 to 1,300 are also struggling but largely at the hands of the current financial panic.
A: You are always going to find many different opinions among economists but there is a general awareness that financial instability is not self - curative and that strong action is necessary in the face of financial panic, that is a more settled idea today than it would [have been] five years ago.
In the meantime, American banks have had more time to immunize themselves from potential European defaults, further reducing the risks that a blowup in Europe could cause financial panic in the U.S.
[3] The Canadian banking system, lacking those restrictions, did not experience financial panics during this period (or even during the Great Depression) despite having an otherwise similar largely agricultural economy.
So, fractional reserve banking caused financial panics and boom - bust economic cycles in the US prior to the creation of the Fed, but crises and recessions in the pre-Fed era were relatively short and the economy tended to recover far more quickly.
As explained by Murray Rothbard (America's greatest economics historian), these pre-Fed financial panics ``
At least the headline writers and Twitter wags enjoyed themselves during yesterday's global financial panic.
Western governments at the time undertook bold fiscal and monetary steps that averted what otherwise might have become debilitating financial panics.
When financial panics do come, regulators should be as consistent as possible in their responses to troubled financial institutions, ensuring that creditors know where their investments stand and thus don't run to dump them when good times give way to bad.
Obama had come to rely on Summers, who had fought financial panics in Latin America and Asia in the 1990s as a top official in the Treasury Department, to help him manage an overwhelming series of crises.
In the 1850s and 1860s, following the bursting of speculative bubbles in the US and UK railroad sectors, it lent freely to institutions to prevent financial panic, as it did during the Barings crisis of the 1890s.
So in the case of the financial crisis, yes, what I knew about the depression and about financial panics prior to the depression was actually very helpful conceptually for thinking about this panic.
We've just about had everything — from lipstick on a pig all the way to a full - on financial panic, with two ongoing wars and the lingering effects of an oil - price shock playing in the background.
Things get more tangled as the movie goes on: Based on Michael Lewis» rightly acclaimed book, about the traders who foresaw a collapse in mortgages that would lead to a bank crisis and a nationwide financial panic in 2008, the big - screen version is a film without an audience.
Most commonly the big ranges happen near the end of accounting periods, or at minor financial panics, whether for legitimate reasons (LTCM, 9/11), or dubious reasons (Y2K).
During the extraordinary financial panic that occurred late in 2008, I never gave a thought to selling my farm or New York real estate, even though a severe recession was clearly brewing.
Though I am ordinarily libertarian, with finance I believe that depositary institutions must be required to match assets and liabilities, because the losses to society as a whole from financial panics are big, and they can be easily avoided with modest regulation.
I still doubt the U.S. will default, but if it does, we would face a probably financial panic.
Beyond providing the liquidity necessary to avoid financial panics and bank runs, can QE increase economic output and employment?
14) Dealing with financial panics and crises.
As just one example, Warren Buffett did exactly this during the recent financial panic and earned $ 10 Billion by putting his cash to work.
Whereas most investors during that time of financial panic were dumping their freefalling U.S. equities, Buffett was snatching them up at such great volume that he imagined his personal, non-Berkshire Hathaway portfolio would soon be composed only of domestic stocks.
Thanks to excessive deposit creation (fractional reserve banking) there were three financial panics during this period (in 1873, 1884 and 1893), but the overall economy achieved very strong real growth.
Similarly, we may only have one or two economic depressions or financial panics in a century and hyperinflation may never ruin the U.S. economy, but the prudent, farsighted investor manages his or her portfolio with the knowledge that financial catastrophes can and do occur.
Still, even if you take out the Obama Trauma, in which the stock market fell nearly 13 % following the current president's election in 2008 — and, to be fair, the country was in the middle of a financial panic — the average return in a month following the election is 0.4 %.
Corporate America has operated in crisis mode since the 2008 financial panic, accumulating cash as a brace against further turmoil similar to the credit implosion.
The Dow vs. Everything Else: «In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president.
In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president.
I'll continue to preface this post with my usual rant about how important it is to ignore all the financial panic that's being spewed by the mainstream... Read more
But credibility is a crucial asset for any Treasury Secretary given that financial panics or crises can come suddenly and the Secretary's words can come to be needed for reassurance.
It is no different this time around except that in the environment characterized by fear, uncertainty, and doubt (FUD) that's prevailed since the 2008 Financial Panic, each instance of ebbing in data is feared to be the start of the next economic and market meltdown.
Had the Fed responded to the falling market sentiment in the second half of 2008 the financial panic in late 2008 may have been far less severe and the resulting bankruptcies fewer.
«The financial panics throughout the late nineteenth century were a result of the arbitrary credit creation powers of the banking system.
Hayek's belief that the pre-Fed US system did not restrain credit creation firmly enough is understandable in light of the five financial panics during the fifty years of the federally regulated «National Banking system» that prevailed between the Civil War and the First World War.
In one famous example, the Panic of 1907, a 50 percent drop in stocks in New York set off a financial panic that threatened to bring down the financial system.
The establishment of the Federal Reserve System in 1913 was a direct response to the bank runs and financial panic of 1907.
And I would say that thinking about the housing bubble before the financial panic.
Losses from a natural disaster don't always lead to financial panic.
The conference began by examining two cases from the early days of modern democracies: the United States after the financial panic of 1837 and the UK's famous Geddes Axe in the 1920s.
In the wake of the financial panic in late 2008, most economies adopted fiscal stimulus packages of spending increases and tax cuts in keeping with Keynesian ideas (which I cautioned about in my March 2009 column).
The film, a follow - up to 2016's hit 10 Cloverfield Lane featuring a stacked cast including Gugu Mbatha - Raw, David Oyelowo, Daniel Brühl, and Chris O'Dowd, was originally planned to be a theatrical release from Paramount Pictures, but financial panic and poor test screenings led to a ceremonial dumping on the streaming platform.
It does not matter what backs the currency if banks are allowed to overlever, or mismatch assets long — there will be a financial panic, and it is not due to gold, silver, or fiat money necessarily, but that that banks made promises that could not be kept under all scenarios.
Let's hope that Fed takes it easy when they do start raising interest rates to make sure we don't start a financial panic where people stop buying things and the economy starts to suffer.
In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president.
Many true gold bugs believe other gold ETFs like (GLD) could never deliver (or own) the assets should there be a financial panic and a run on physical gold.
a b c d e f g h i j k l m n o p q r s t u v w x y z