Scoping the new subprime as watchdogs cry 'bubble'

LONDON: As global watchdogs warn that euphoric financial markets are divorced from economic reality and acting out some reprise of the credit bubble and bust of the past decade, fears of another subprime time bomb are inevitable.

But even if you believe another crisis is brewing, it’s most likely not where it was last time. At least not in the US securitised mortgages – the heart of systemic blowout that nearly brought down the global banking system in 2008.