{"id":59331,"date":"2021-09-14T08:02:19","date_gmt":"2021-09-14T13:02:19","guid":{"rendered":"https:\/\/olduvai.ca\/?p=59331"},"modified":"2021-09-14T08:02:19","modified_gmt":"2021-09-14T13:02:19","slug":"seven-possible-causes-of-the-next-financial-crisis","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=59331","title":{"rendered":"Seven Possible Causes of the Next Financial Crisis"},"content":{"rendered":"<div class=\"gf__single-article-hero gf__single-article-hero--generic\">\n<header class=\"gf__single-article-hero-header\">\n<div class=\"gf__container gf__container--indent\" data-pv=\"\">\n<div class=\"gf__single-article-title\">\n<h3 class=\"gf__single-article-title-text lal-f3 lal-f3--bold\"><a href=\"https:\/\/lawliberty.org\/seven-possible-causes-of-the-next-financial-crisis\/#.YT-BsNydi7M.twitter\">Seven Possible Causes of the Next Financial Crisis<\/a><\/h3>\n<\/div>\n<\/div>\n<\/header>\n<\/div>\n<div class=\"gf__container gf__container--indent gf__flex\">\n<div class=\"gf__single-body gf__single-body--generic\">\n<div class=\"gf__single-body-inner\">\n<div class=\"gf__content\">\n<p>The great financial historian, Charles Kindleberger, pointed out in the 1970s that over several centuries, history showed there was a financial crisis about once every ten years. His observation still holds. In every decade since his classic\u00a0<em>Manias, Panics and Crashes<\/em>\u00a0of 1978, such crises have indeed continued to erupt in their turn, in the 1980s, 1990s, 2000s, 2010s, and again in 2020. What could cause the\u00a0<em>next<\/em>\u00a0crisis in this long, recurring series? I suggest seven possibilities:<\/p>\n<p><strong>1. What Nobody Sees Coming<\/strong><\/p>\n<p>A notable headline from 2017 was \u201cYellen: I Don\u2019t See a Financial Crisis Coming in Our Lifetimes.\u201d\u00a0The then-head of the Federal Reserve was right that she didn\u2019t see it coming; nonetheless, well within her and our lifetimes, a new financial crisis arrived in 2020, from unexpected causes.<\/p>\n<p>It has been well said that \u201cThe riskiest stuff is what you don\u2019t see coming.\u201d\u00a0Especially risky is what you don\u2019t think is possible, but happens anyway.<\/p>\n<p>About the Global Financial Crisis of 2007-09, a former Vice Chairman of the Federal Reserve candidly observed: \u201cNot only didn\u2019t we see it coming,\u201d but in the midst of it, \u201chad trouble understanding what was happening.\u201d Similarly, \u201cCentral banks and regulators failed to see the bust coming, just as they failed to anticipate its potential magnitude,\u201d as another top central banking expert wrote.<\/p>\n<p>The next financial crisis could be the same\u2014we may take another blindside hit for a big financial sack.<\/p>\n<p>In his memoir of the 2007-09 crisis, former Secretary of the Treasury Henry Paulson wrote, \u201cWe had no choice but to fly by the seat of our pants, making it up as we went along.\u201d\u00a0If the next financial crisis is again triggered by what we don\u2019t see coming, the government reactions will once again be flying by the seat of their pants, making it up as they go along.<\/p>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<figure class=\"wp-block-pullquote alignwide\"><\/figure>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Seven Possible Causes of the Next Financial Crisis The great financial historian, Charles Kindleberger, pointed out in the 1970s that over several centuries, history showed there was a financial crisis about once every ten years. His observation still holds. In every decade since his classic\u00a0Manias, Panics and Crashes\u00a0of 1978, such crises have indeed continued to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[31767,124,238,312,1849,31768,501],"class_list":["post-59331","post","type-post","status-publish","format-standard","hentry","category-economics","tag-alex-j-pollock","tag-central-banks","tag-economic-crash","tag-financial-crisis","tag-financial-markets","tag-law-and-liberty","tag-market-crash"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/59331","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=59331"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/59331\/revisions"}],"predecessor-version":[{"id":59332,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/59331\/revisions\/59332"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=59331"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=59331"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=59331"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}