Sentences with phrase «fueling market bubbles»

Asset prices are in fact much more sensitive to monetary policy than either the economy or inflation are, with the incumbent risk of fueling market bubbles.

Not exact matches

As mentioned above, the dot - com bubble took place in the late 1990s and was characterized by a rise in equity markets that was fueled by investments in internet and technology - based companies.

Corporate debt helped fuel the stock market bubble, while mortgage debt powered the real estate bubble.

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.

Low interest rates helped fuel the real estate and stock market bubble by making the debt side of the balance sheet less expensive, creating a «wealth effect» as people came to believe that rising property and stock - market prices would be able to pay off their obligations.

Rajan believes that indexing helps to fuel investment bubbles because new money flowing into such funds is automatically allocated to the companies with the highest market value.

On balance, it seems likely we're in a speculative bubble, fuelled by the record low interest rates of recent years and the arrival of Buy To Let investors scared of the stock market.

(04/22/2013) The world could be heading for a major economic crisis as stock markets inflate an investment bubble in fossil fuels to the tune of trillions of dollars, according to leading economists.

The markets today are in a carbon bubble, because they ignore future stranded fossil fuel assets.

The world could be heading for a major economic crisis as stock markets inflate an investment bubble in fossil fuels to the tune of trillions of dollars, according to leading economists.

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.

HSBC warned that 40 - 60 % of the market capitalisation of oil and gas companies was at risk from the carbon bubble, with the top 200 fossil fuel companies alone having a current value of $ 4tn, along with $ 1.5 tn debt.

Recently even Britain's Financial Times acknowledged the Carbon Bubble and reported that market analysts are steering investment clients away from high - carbon fossil fuels.

Fueled by government policies and the broad decline of the stock market, the Chinese real estate market has seen a spike in sales activity in recent months despite poor underlying fundamentals, leading many observers to suggest that a speculative bubble is about to burst.