Sentences with phrase «fueling the 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.

New monetary policy led to easy access to credit, only fueling the asset bubble.

«Borrowing money for free and having easy access to capital and leverage (for big entities) is the fuel asset bubbles crave,» says the paper.

Not exact matches

Relatively easy liquidity has fuelled investment in China's notoriously frothy real estate sector - property investment jumped 22.8 percent in January and February combined from 2012 - pushing up home prices and triggering hawkish talk on property tightening from Beijing policymakers to contain the risk of an asset bubble rapidly inflating.

The Fed is in a «liquidity trap» which requires rates to stay at emergency levels and that fuels the bubbles in equities, Commercial and Residential Real Estate and financier assets.

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.

There wouldn't be a an asset bubble either if growth and wages fueled inflation and that led to an interest rate rise.

Behind Germany and ahead of some of the oil producers, it runs the largest current account surplus in the world, which means that it is exporting its excess savings in a world that has nowhere to put the money, and so the world must respond either with speculative asset bubbles, unproductive investment, debt - fueled consumption binges or unemployment.

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.

The Federal Reserve Fire and Rescue Unit Some have accused the U.S. Federal Reserve of putting out too many fires, adding fuel to asset pricing bubbles.

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

This paper is designed to assist the TCFD members in assessing the «carbon bubble» concept and «stranded asset» risks inherent in the business - as - usual strategies of many fossil fuel companies.

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

In the case of fossil fuels, the carbon bubble effect due to stranded assets has motivated some divestment activity, in addition to the ethical / survival concerns over increasingly serious climate impacts due to fossil fuels consumption.

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.

The combination of needing to limit carbon dioxide emissions and having fossil fuel companies that are valued by their proven reserves is what Carbon Tracker, a non-profit organization, is calling the «Carbon Bubble» in their new report, «Unburnable carbon 2013: Wasted capital and stranded assets.»

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.

Last fall I devoted a lengthy post to the notion that future policies to address climate change expose investors in companies producing fossil fuels to a bubble in asset valuations.

This has fed into their thinking on assessing the «carbon bubble» and «stranded asset» risks of fossil fuel companies.

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.

With the energy sector showing signs of profound, disruptive change, and with the former chairman of Duke Energy arguing that a price on carbon is inevitable, investors are rightly spooked by the prospect of a carbon bubble — whereby fossil fuel assets become stranded because they either can't be exploited due to climate concerns, or clean energy alternatives simply squeeze them out of the marketplace.