Exactly, just because rates/inflation are low doesn't mean you can't have a bubble burst and a recession. It is just that the policy response is more difficult,

Exactly, just because rates/inflation are low doesn't mean you can't have a bubble burst and a recession. It is just that the policy response is more difficult, because there is no room to maneuver on bond rates... nominally the only response is more (unbacked) currency issuance... which will cause inflation even without growth or requiring new loans.