Financial crises are an unfortunate but necessary consequence of modern capitalism.
Why do we have financial crises? Why do banks lose money? If history is any guide, it hasn't often been the result of speculative bets. It has been the result of banks making loans to individuals and businesses who can't pay them back.
Firstly, economic globalisation has brought prosperity and development to many countries, but also financial crises to Asia, Latin America and Russia, and increasing poverty and marginalisation.
From the beginning of time, we've had financial crises. People always blame the banks and for good reason. When you look for the root causes, they're almost always failed government policies.
No matter how the financial system is set up, no matter what the economic system is, as long as you have people, you're going to have financial crises; you're going to have bubbles that manifest themselves in the financial system.
The 90s was a difficult decade, with recessions in many transition countries and in emerging economies provoked by financial crises; and with continuing stagnation in Africa.
Financial crises are like fireworks: they illuminate the sky even as they go pop.
Think how weird profit margins are: We've got high unemployment and financial crises - and world record profit margins. People think the American market is very cheap. We don't. The market quite incorrectly gives full credit to today's earnings.
At present, financial crises occur, chiefly because the paper currency is redeemable in gold only.
Fiscal crises often turn into financial crises, dealing a blow to the real economy.
