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What Happens When the Next Financial Crisis Strikes?
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What Happens When the Next Financial Crisis Strikes?

Pro Publica |
September 11, 2018

As the 10-year anniversary of the last crash nears, pundits are predicting the next one. That’ll bring another problem: Who’s going to solve the crisis when our president has poisoned relations with the institutions that helped fix the last one?


It came as a nasty surprise to almost everyone a decade ago when we found ourselves on the cusp of a worldwide financial collapse.

Most business journalists — including me — failed to see the 2008 disaster until it was almost upon us. But these days, predicting meltdowns has become positively trendy. With stocks at or near record levels, unemployment low and the economy booming, it’s become conventional journalistic wisdom to predict that evil days lie ahead. And not very far ahead. The recent New York Times editorial, “Inviting the Next Financial Crisis,” is just one example.

But I don’t think that today’s obvious problems will cause tomorrow’s crisis. Why? Because obvious problems usually don’t cause crises. You get a crisis when problems combine in unpredictable and unforeseen ways.

Credit by - Pro Publica

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