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Janus Profit Rises, Asset Growth Lags Industry.
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Sir Stephen Nickell, the OBR's main economic adviser, said rising debts were offset by rising asset prices, which meant the household balance sheet "is in an unprecedented healthy state in terms of the ratio of assets to liabilities".
By contrast, rising asset prices tend to be seen, within limits, as a cause to buy.
"These include some ongoing buildup of financial imbalances and rising asset prices".
In good times more lending and rising asset values mean that booms feed on themselves.
For example, rising asset prices can generate more demand, not less.
Loan growth was strong and defaults were rare, thanks to booming economies and rising asset prices.
The Fed insists that it is not its job to respond to rising asset prices.
It decided that it did not need to worry itself over rising asset prices.
Rising asset prices encourage people to borrow money and buy assets, most obviously in the housing market.
In the years prior to the crisis, households accumulated a lot of debt, which was offset by rising asset prices.
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