The Housing Bubble

“Moody’s Investor Service is concerned that a tidal wave of capital into mortgages has relaxed credit for high-risk loans.”

“In response, the ratings agency is stressing that more credit discipline is needed to avert a crisis.” “Moody’s specifically cites growth in commercial mortgages, which have reached 15 percent of the gross domestic product, as a particular source of concern.”

“The 15 percent mark ties the record high set in 1988, the peak of the previous real estate cycle.”