Economic bubble

(redirected from Credit bubble)

Economic bubble

A market phenomenon characterized by surges in asset prices to levels significantly above the fundamental value of that asset. Bubbles are often hard to detect in real time because there is disagreement over the fundamental value of the asset.
References in periodicals archive ?
Directed by Anchorman director Adam McKay, The Big Short is based on a book by Michael Lewis and charts the build-up of the housing boom and credit bubble.
China still has to undergo a painful credit bubble workout, and its transition towards a more consumer-led economy is far from smooth.
In an analyst report, they said, 'In our view, China is in the midst of a triple bubble, with the third biggest credit bubble of all time, the largest investment bubble (proxied by the investment share of GDP) and the second biggest real estate bubble.
8 million, the highest data point since the height of the credit bubble in summer 2005.
paragraph] Consumers during the recent credit bubble took on many obligations they ultimately could not meet.
The much-anticipated Al Etihad Credit Bureau, created to increase transparency in the market and avoid the repeat ofa credit bubble in the UAE, became operational in September 2014 and formally launched in November after multiple delays.
The global credit bubble is deflating, and bubbles leave behind massive over-capacity and the need to compete on price.
However, deflating is grievous in countries that have had a credit bubble, as it drives debtors into bankruptcy.
6 Borrowing on credit cards surged in July as consumers became more confident, although economists warned of a potential credit bubble.
We must remember these are not the boom-town years of the late 1990s or of the credit bubble years.
The collapse of China's credit bubble would likely cause annual GDP growth to drop to 1-2 percent, on average, for the subsequent four years, assuming a 2 percent annual decline in capital expenditure and a still-respectable consumption-growth rate of 3-5 percent.
China needs to deftly handle its non-banking credit bubble, and the United States needs to address new risks in corporate debt, margin lending and leveraged finance, the IMF warns.