Professor William Black:

It is the first ingredient in the recipe, obviously. It is also a question of concentration of risk. We also looked at concentration of risk. This is a sure tell that something is absolutely imprudent. The really good news is that there is no need to predict whether there is going to be a bubble or a crisis. Really bad underwriting is unambiguously bad for the world. When it is stopped, that makes everybody better off, except for the bad people, by blocking a Gresham's dynamic and allowing the honest bankers to succeed in the marketplace.