In the last two decades we have experienced three major crises. We are in effect in an age where financial stability is a fairy tale our parents tell us about when revisiting old memories. From Asia in the 1990s, the dot-com bubble and bust of the early 2000s through to the Great Crash we have witnessed first-hand an emerging pattern of prolonged financial instability. From an overwhelming environment of incorrectly priced assets, to a period of realisation and rectification, all these crises appear to have the same underlying causes and more worryingly the same outcome; subsequent crises of increasing effect.
Personally I think the next financial crisis will hit far sooner than many expect. The question that should be on everyone's mind is when and where the next crisis will occur and how we are likely to be affected. Hopefully through foresight, regulation and prudent behaviour, the next period of financial woe will not progress to widespread political and social unrest.
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