Sentences with phrase «for asset bubbles»

Soros has a comment that applies here as well: «when interest rates are low we have conditions for asset bubbles to develop.

Critics argue that such monetary easing creates the potential for asset bubbles and distortions in bond markets.

3One might argue that an innovation is not a necessary condition for an asset bubble.

In addition, the world's largest cryptocurrency «ticks all of the boxes» of the essential criteria for any asset bubble, including overtrading, «new - era» thinking and rising leverage, he wrote.

Not exact matches

Even more devastating, wages» share of GDP has been declining (with brief interruptions during asset bubbles) for 46 years.

Jason was a dreamer from Staten Island, a struggling entrepreneur whose business (a company that licensed celebrity names for grocery products such as Olympia Dukakis» Greek Salad Dressing and Britney Spears Bubble Gum) had recently sold off its modest assets.

«The reason ripple is surging so much is it's a bubble,» said Erik Voorhees, CEO of digital asset exchange ShapeShift and a vocal advocate for bitcoin as a way to separate money and the state.

«The government's policy challenge for this year is to strike a balance between containing an asset bubble and pushing the economy out of the growth malaise,» she said.

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.

But when the Internet bubble popped, competitor WorldCom was engulfed in fraud, and the capital markets shut off the spigot for telecom deals simultaneously, AT&T had to dump the cable assets for half what it paid.

Lower interest rates will do nothing but inflate asset - price bubbles if there is reduced demand for goods and services.

Many Chinese commentators think the Plaza Accord of 1985, reached in New York by finance ministers from five developed countries, did not solve many problems in the world and was partly to blame for the Japanese asset bubble and subsequent slowdown.

If this is true, by the way, it means that attempts at implementing liberalizing reforms are successful mainly during periods of great global liquidity, and this might have implications for China, especially if over the next few years global central banks begin to withdraw the huge liquidity injections that have underpinned asset bubbles around the world.

Speculative bubble dynamics are actually not required for a painful boom - bust cycle in asset prices.

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.

When one compares bitcoin's five - year price momentum (adjusted for inflation) against that of previous asset bubbles, bitcoin dwarfs the runners - up — the Mississippi bubble of 1720 and the Amsterdam Tulip Mania of 1637.

Bitcoin meets all of the essential criteria for any asset - class bubble, including overtrading, a lack of regulation and the potential for swindles

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.

First, when there is a shock to markets, the most vulnerable assets are the ones that are in a bubble, and we have been saying for quite some time that US Treasuries appear to be overvalued.

... this «Bernanke Asset Bubble» may be due for a short pause.

The solution to our macroeconomic issues has been to inflate new bubbles, to inflate asset values to soften the blow from the last bubble, all the while creating the conditions for the next one.

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).

The premise of Shiller's work on asset bubbles has been long accepted by economists; demand for an asset becomes detached from fundamental factors and appears to be built on rapid increases in market value.

The problem is, if you «know» that a particular asset is immersed in a bubble then you will be constantly on the lookout for evidence that the bubble has ended and that the inevitable implosion has begun.

The key intuition is that, by creating a bubble in the market price, savers» demand for the housing asset for investment purposes imposes a negative externality on borrowers, who only demand the housing asset for utility purposes.

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.

«The psychology of a bubble can be incredibly painful for asset managers with careers at stake, according to Grantham.

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 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.

Market crashes and asset bubbles are prime opportunities for the book industry to offer up some new or long forgotten investment strategy.

Positive cash flow into the bubble asset class supports valuations for a time, the cash flows driven by momentum, but eventually positive cash flows are overwhelmed by negative cash flow from an overvalued asset class.

For us, knowing that our asset allocation would have survived the Great Recession of 1920 or the 2000 Dot - com bubble is quite reassuring.

The reason for the bubble in «risk assets» as well as for the poor performance of the real economy: monetary pumping on an unprecedented scale in the modern era — click to enlarge.

Real estate is a great asset to use for diversification because it doesn't always move with stocks or bonds (although you do have to watch out for bubbles and down markets, just as you do with any other investment asset class).

the European periphery is a bubble («The Euro crisis is not over... the European economies are not going to change for the better for years to come despite all the cheating and breaking of laws»), Value investors need to venture to Russia («when you look at today's opportunity set, you're left with a set of assets where nothing looks attractive from a valuation point of view») or buy gold mining stocks -LRB-» The down cycle could be much bigger than anybody believes if the market realizes that all the actions taken in recent years do not work.»)

Another coherent definition of a bubble has less to do with a dynamic price path and ongoing resale for gain, but rather there may be a (temporary) segmentation across classes of asset market buyers.

Yes, I agree it's not genuine growth, it is an asset bubble etc etc, doesn't help much though when you look at poor returns at the end of a year and realise that the doom - and - gloom picture was being wilfully ignored by those who rode the indices (perhaps in blissful ignorance) to huge profits while other saps spend time arguing about getting the economics dead right, and end up on the moral high ground but no returns to show for it.

But, barring any drastic moves in the final trading days of 2015, the most widely held classes of assets, including stocks and bonds across the globe, were basically flat... While that may be disappointing news for people who hoped to see big returns from at least some portion of their portfolio, it is excellent news for anyone who wants to see a steady global economic expansion without new bubbles and all the volatility that can bring.

Alan Greenspan and the Federal Reserve kept interest rates too low for too long, stoking an asset price bubble and creating a leverage binge of epic proportions.

How to Spot a Market Bubble The bursting of two major asset bubbles — in home prices in recent years and Internet stocks at the turn of the century — has trained investors to scan the horizon for signs of where the next one might form.

After the bubble pops, it becomes a question of what the underlying assets can be liquidated for, allocating losses mercilessly according to the loan documents and bankruptcy priority.

In a sort of mirror image of the 1999 Dot - Com bubble, when investors overpaid for high risk, non-yielding stocks, the market today is characterized by eye - popping valuations for «safe» assets from bonds of all types to the most conservative sectors of the stock market.

Fret no more — Capcom released new gameplay details and assets for this unknown quantity floating around in the bubbling pit of zombie shooter games.

The Economist had been warning about asset price bubbles and dire consequences for over a year prior to the meltdown.

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.

And, no, the former VP is hardly the inspiration for the «unburnable carbon» or «carbon asset bubble» thesis (the folks behind Investor Watch have been leaning into this for a half - dozen years and, more recently, issuing a series of The Carbon Tracker reports).

The assertion of a carbon bubble in fossil fuel assets ultimately depends on investor ignorance of climate - response risks, presumably because companies haven't quantified those risks for them.

In this case, however, I see good reasons to believe that the case for a «carbon asset bubble» has been overstated and applied too broadly.

In their Wall St. Journal op - ed this week, Al Gore and one of his business partners characterize the current market for investments in oil, gas and coal as an asset bubble.

At the same the government funded subsidies for low income earners that further fueled the asset bubble in a self - sustaining cycle possible due to rising house prices.