Economic bubble

(redirected from Price 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 ?
Last summer Bank of England Governor Mark Carney said the threat of a price bubble was the "biggest risk" to recovery.
He added: "Since last year, rising house prices have promoted concern about another price bubble emerging.
Meanwhile, IHS Global Insight economist Howard Archer warned that the risk of a house price bubble developing across the UK was "very real".
It follows a warning yesterday from Bank of England Governor Mark Carney who signalled he is ready to take action to cool Britain's surging housing market amid fears a new property price bubble could derail recovery.
e Chancellor said the central bank "should not hesitate" to use its powers to tackle any house price bubble but suggested he would not directly intervene despite growing concerns about the possibility of rises in values leading to a crash.
THE Bank of England should consider capping the loan-to-salary ratio for mortgages to prevent a house price bubble, Lord Heseltine has suggested.
He believes that talk of a price bubble is unhelpful, to put it politely, and that the market needs to be left to its own devices without scaremongering commentary based on figures skewed by London's exaggerated rises.
Moreover, it was revealed last week that the latest growth figures depend on the financial services sector, which caused the global problem in the first place; the energy sector, because if its pricing policies; and the dangerous house price bubble fostered by the Government's Help to Buy (votes) policy, rather than the export-led recovery which they promised and which has singularly failed to materialise.
The Federal Reserve's balance sheet is expected to exceed USD4tn; leading to warnings that the current easing measures are inflating the asset price bubble.
London is most at risk with a 93% probability it is experiencing a house price bubble, according to the research by Professor Mitchell, head of Warwick Business School's Economic Modelling and Forecasting Group.
George Osborne's measures to boost the property market could create another house price bubble unless more was done to increase the supply of new homes, the National Housing Federation (NHF) claimed.
18) The results flash a heightened probability of an emerging Chinese house price bubble in 2009-10.