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A useful article, in which people make important mistakes clearly.
Most prominently the "more data fallacy", as seen with the derivatives market post 2008, whence now the supervisors have unbelievable amount of transaction level data and no idea what to do with it...
I always remind myself that some comparative dumbasses were able to avoid being blindsided by it, simply by knowing what a rental yield was, and understanding teaser rate pricing structures. The idea that the housing bubble was hard to forecast is a pernicious myth. 
But more fundamentally, it is almost never "risky lending" that causes systemic problems. People who do risky lending usually know that it's risky and take precautions accordingly. What kills you is safe lending that turns out not to be.
Show me a market segment that has weekly Bloomberg articles about how dangerous it is, and a market segment that hardly written about it at all because it's so boring, and I'll bet with you all afternoon about which one causes the crisis.
The kernel of truth here is that *anything* that's growing quickly needs to be checked out (hmmm, I seem to remember a pretty good book that coined that rule and it's going to be out in paperback soon)
the reference was to this book btw.
amazon.co.uk/gp/aw/d/178125…
amazon.co.uk/gp/aw/d/178125…
