Sentences with phrase «real asset prices»

Low interest rates have very clearly played a part in increasing real asset prices.

Monetary neutrality means real asset prices are not boosted indefinitely by such policies; their economic effects must ultimately unwind.

Not exact matches

If prices fall further, some companies may have to quickly sell off their real estate or infrastructure assets.

«So there may be some opportunities to pick up some real quality assets... at distressed prices.»

One person who pointed out the dangerous asset bubble developing in 2005 was economist Robert Shiller, whose composite Case - Shiller index, created in the 1990s, studies real estate prices nationally and in key urban areas.

As with previous examples, the action has been mainly in financial assets with real estate prices soaring in the financial centres.

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.

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.

The real value of an asset is not what the price tag says or what an expert recommended but is always what the market dictates.

On the way up, increasing asset prices created a «wealth effect» — those lucky enough to see the value of their home go up so much were more inclined the spend money, thereby stimulating the real economy.

The financial sector wins at the point where you don't see that the prices that the banks are inflating are asset prices — real estate prices, bond and stock prices — and that the role of commercial banks is to increase the power of wealth over the rest of society, over labour, over industry, to create a new ruling - class of bankers that are even more heavy than the landlords that were criticised in the last part of the 19th century.

To bankers, the antidote is to lend enough new credit to re-inflate prices real estate and other assets, enabling new buyers to borrow the credit to buy property from defaulters.

The more credit creation takes the form of inflating asset prices — rather than financing purchases of goods and services or direct investment employing labor — the more deflationary its effects are on the «real» economy of production and consumption.

Where these balance sheet improvements are most advanced, future financial distress will look more like what we typically see in instances of financial stress in the major economies — substantial asset price volatility and the potential for substantial financial losses, but less in the way of a significant disruption to either short - run or long - run real economic growth.

If they do, of course, asset prices will surge and the rich (the real rentiers) will get even richer.

These bubbles provide a classic contrast between the real wealth of nations and what the business press these days calls «wealth creation» that simply takes the form of rising asset prices — «capital gains,» most of which are land - price gains.

The issue is very simple: U.S. wealth is overstated because the prices of stocks, bonds (particularly corporate), even real estate, are excessive in relation to the replacement value of the underlying assets, and the income streams that are derived from them.

He modified the original Fama - French five - factor model to account for research finding that, because there is no real - time market price for illiquid private assets, returns are appraisal - based and subject to manager judgment.

The government spending that Mr. Bernanke has endorsed is pure bailouts to the banks, insurance companies, real estate packagers and other Wall Street institutions so that they can support asset prices and thereby save the economy's financial balance sheet, not its employment and living standards.

An array of measures is selected from the overall credit supply (or what is the same thing, debt securities) to represent «money,» which then is correlated with changes in goods and service prices, but not with prices for capital assets — bonds, stocks and real estate.

Asset - price inflation gives way to crashing prices and negative equity for real estate and for much financial debt leveraging as well.

This asset - price inflation goes hand in hand with debt deflation of the «real» goods - and - service producing economy.

And what about the valuations of these funds using realistic mark to market prices for the illiquid assets, like private equity, commercial real estate and OTC derivatives?

An alternative definition of a Bubble Economy therefore focuses on asset - price inflation — rising stock market, bond market and real estate prices in the face of an economy - wide debt deflation.

It means that instead of spending income on buying goods and services in the «real» production - and - consumption economy, they are paying the bill for past asset price inflation.

The economy would «borrow its way out of debt,» re-inflating asset prices for real estate, stocks and bonds so as to deter home foreclosures and the ensuing wipeout of collateral on bank balance sheets.

Ride - sharing services such as Uber Technologies Inc. and Lyft Inc., and the advent of electric vehicles and driverless cars, are poised to chip away at the higher prices that real estate around subways and bus stops has earned, according to a report from MetLife Inc.'s asset - management business released Tuesday.

Zaitech - practicing firms obtained low - interest loans and used them to purchase stocks and real estate, which surged and helped the firms to report blowout earnings as long as asset prices continued to rise.

Overconfidence and the Bank of Japan's loose monetary policy in the mid-to-late 1980s led to aggressive speculation in domestic stocks and real estate, pushing the prices of these assets to previously unimaginable levels.

Risk and position management Managing positions and risks across an extensive asset base in a single, end - to - end system with automated event management and real - time pricing and analytics.

Managing positions and risks across an extensive asset base in a single, end - to - end system with automated event management and real - time pricing and analytics.

In an attempt to cast light on this issue, my colleagues at Plexus Asset Management have updated a previous multi-year comparison of the price - earnings (PE) ratios of the S&P 500 Index (as a measure of stock valuations) and the forward real returns (considering total returns, i.e. capital movements plus dividends).

In fact, the pricing mechanisms that rule futures contracts, which in turn, establish real - world asset pricing, can be entirely disconnected from physical supply and demand determinants, especially in the paper gold and paper silver worlds of London and New York.

Their tests employ nine asset class indexes (U.S. stocks, European stocks, Japanese stocks, U.S. real estate investment trusts (REIT), International REITs, intermediate - term U.S. Treasuries, long - term U.S. Treasuries and commodities) and a spot gold price series.

Still, the volatility of asset prices, to some extent, is taking a bit more of a back seat now to the real economic story, where growth continues to look stable and steady.

Lastly, as noted in BCA's 2014 outlook report: In a liquidity trap, where interest rates reach the zero boundary, the linkage between monetary policy and the real economy is asset markets: zero short rates act to subsidize corporate profits, drive up asset prices and encourage risk - taking.

The exceptions are Indonesia and Thailand, where the financial problems have generally proven to be less tractable, and Hong Kong, where growth has been constrained by high real interest rates and the decline in asset prices.

It is a much easier task to affect the price of cash - settled instruments notionally backed by real underlying assets in rigged exchanges that court hyperactive turnover.

-- FOMC minutes show uncertainty and concern about markets are affecting officials» decision - making — Officials were cautious when evaluating market conditions and the «damaging effects on the economy» — Worry about «potential buildup of financial imbalances» and a sharp reversal in asset prices» — Members seem oblivious to impact of inflation on households and savings — Physical gold and silver remain the only assets for real diversification and safety

Many seem to be waiting for «the big kill,» the sucker who proverbally is born every minute, but whom a Russian only needs to meet once in a lifetime to dump his assets at an inflated price (something like the Rockefellers finally being able to dump their money - losing Rockefeller Center on the Japanese when the once - in - a-lifetime spike of New York real - estate prices occurred in 1988).

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It has become easier to ride the wave of asset - price inflation — the stock market and real estate bubble — than to create new material means of production.

This was largely a function of the coincidence of high real interest rates and high asset price inflation over much of the period — more so, perhaps, than the exercise of exceptional investment skills as such.

«Our investors won't pay a commercial price,» says Geppert, apparently concerned about funding what they would consider an oversized profit for Manchester, who paid «above $ 110 million» for the assets now valued at roughly $ 130 - $ 140 million, when its related real estate assets are included.

Real estate also remains by far the economy's largest asset — so large that it absorbs about 80 percent of bank credit in many countries, with such credit thereby raising housing and other real estate prices, adding to the economy's debt overhReal estate also remains by far the economy's largest asset — so large that it absorbs about 80 percent of bank credit in many countries, with such credit thereby raising housing and other real estate prices, adding to the economy's debt overhreal estate prices, adding to the economy's debt overhead.

When economies shrink, prices decline for real estate and other assets.

Having rapidly pulled ahead over the past three decades, China must remain free of rentier ideology that imagines wealth to be created by debt - leveraged inflation of real - estate and financial asset prices.

As long as the loans are used to bid up property, stock and bond prices, they can claim that they are «responding to the market» by getting homeowners, commercial real estate investors, corporate raiders and financial managers to pledge their assets as collateral for yet new loans in a process that seems to be self - sustaining.

I think these capital flows are of great significance, and will support asset prices in the US, like the stock market, real estate and at least for a few years, US Treasury securities.

Using MSCI global real estate dataset, we find evidence that higher - value assets have been more likely to outperform other assets in the same country and sector than lower - priced assets.