Description: Data point No. 1: Banks are back to hawking complex derivatives that magnify bets on corporate debt. Data point No. 2: For the first time since the financial crisis, JPMorgan Chase (JPM) is set to resume selling securities tied to home loans that aren’t backed by the government. Add a third development—the feverish revival of the U.S. housing market, with new home sales surging to levels not seen since August 2008—and a meltdown-minded observer could reasonably get to thinking, Here we go again.

Source: Businessweek.com

Date: Mar 28, 2013

Link: http://www.businessweek.com/articles/2013-03-28/the-troubling-return-of-credit-bubble-factors-like-cdos#r=nav-fst

Questions for Discussions:

• What is the basis for concerns as explained in the report?
• Do you agree with this analysis?
• How can regulators help mitigate the development of a new credit bubble?
• Do you think they will?