| Credit continues to flood into America and is largely finding its way to Treasury securities with pretty dismal yields. The big question in considering whether a new bubble is possible is whether housing finance will be able to tap this flow, as it did in the pre-crisis years.
That, I think, is a more difficult outcome to imagine. Last time around, the market gobbled up a massive stream of what looked like high-return, safe mortgage assets. I don't think a similar supply will be forthcoming this time around. I think that regulators will make sure that mortgage standards do not deteriorate...............................................Full Article: Source
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