It is a crisis of overgrowth
of financial assets relative to growth of real wealth — pretty much the opposite of too little liquidity.
Now, one might object that a high value
of financial assets relative to disposable income is actually a good thing, and that it reflects greater saving by households.
Not exact matches
Carney, who is also governor
of the Bank
of England, pointed to the small size
relative of the
asset class compared with the entire
financial syste.
These
financial products track the price
of an underlying
asset (in this case, bitcoin) and gain or lose value
relative to that base
asset.
In a Mar. 18 letter to G20 central bankers and finance ministers, Carney gave a low - risk assessment
of cryptocurrencies on the basis that the new
asset class was small
relative to the global
financial system.
One way to observe the effects
of Fed - induced yield seeking speculation is to examine the value
of financial assets held by households (the Z. 1 flow
of funds data include nonprofit organizations here),
relative to disposable household income.
A
financial ratio that indicates the
relative proportion
of equity used to finance a company's
assets.
A
financial ratio indicating the
relative proportion
of shareholder equity and debt used to finance a company's
assets.
If you're not sure how to structure things, ask your lender for guidance and to give specific examples
of assets you should account for, such as checking and savings accounts, retirement and pension accounts, brokerage accounts, college savings funds, and
financial gifts from friends /
relatives.
Mr Keating's cabinet submission from 1987 said: «High interest rates on
financial assets and the prospects
of capital gains on the stock market have reduced the
relative attractiveness
of investment in rental housing.»
In a series
of letters addressed to Dover's board
of directors beginning in May 2007, Marathon articulated the concerns
of Dover's shareholders: namely, the Company's weakened
financial and operating position
relative to its competitors and the resulting need to divest
assets up to and potentially including the Company as a whole.
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..
That added value is based on a combination
of factors, such as tax - efficient decisions and liability -
relative asset allocation optimization that a
financial advisor may provide.
The aggregate values and
relative proportions
of the
financial markets will define this average
asset allocation.
First and foremost, companies with dividend paying ability are those with strong
financial positions, i.e., cash on the
asset side and enjoying substantial «surplus - surplus» (a
relative absence
of liabilities) on the obligation side.
To return to a concept I discussed in the first column I wrote for RealMoney, Valuing
Financial Slack in the Steel Sector, banks with a high degree of leverage relative to the overall riskiness of their assets and liabilities possess little in the way of financi
Financial Slack in the Steel Sector, banks with a high degree
of leverage
relative to the overall riskiness
of their
assets and liabilities possess little in the way
of financialfinancial slack.
Likewise, Dodge & Cox is a stock - heavy manager, and their largest funds made a big losing bet on
financial stocks last year, which, combined with a
relative lack
of bond
assets to buffer them, didn't serve the firm (or their funds» investors) very well.
Those periodic special dividends are feasible because
of the firm's immaculate balance sheet, which has almost no debt, relatively high cash levels (
relative to the size
of the company and its acquisitions), and a high current ratio (i.e. the company's short - term
assets cover its short - term liabilities by more than three-fold, thus protecting it from unexpected negative
financial strains, such as during recessions when demand from restaurants can lead to declining sales, earnings, and cash flow).
It should be no surprise that the
relative value
of the vastly more abundant
financial assets has fallen in terms
of real
assets.
Developers, owners and managers are supposed to control costs, monitor the
financial health
of tenants, intervene as problems develop, promote the
relative value
of real estate as opposed to its absolute value, look for cheap
assets to emerge and act opportunistically.