Even with the access to the wide range of data, sophisticated models, and market analysis enjoyed by central banks, our ability to discern deviations of asset prices from fundamental values is very limited. The difficulties I've just outlined lead me to a strong preference for using prudential regulation to deal with potential problems in credit and asset markets.
This does change the supervisory dynamic, with changing risk appetites in firms, increased confidence and a desire to move on from legacy issues. This is perfectly understandable, but in many sectors, serious legacy issues do remain. System and firm resilience is much improved from pre and during the crisis, but vulnerabilities are still significant.