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Why the next financial crisis is closer than you think

A decade on, the response to the 2007-8 crisis has created another bubble, and thus the conditions for another crash

Haruhiko Kuroda, governor of the Bank of Japan in 2015. Photo: KIMIMASA MAYAMA/EPA/REX/SHUTTERSTOCK

Read more: The secret history of the banking crisis

Financial crises are an inexorable part of civilisational history and, since the Dutch “tulip mania” in the 17th century (yes, it really was about flowers), they have often been triggered by asset bubbles bursting. People (or firms) borrow to purchase the thing that’s surging in price, and there comes a certain point they can’t afford to service that debt. In the run-up to 2008, several debt-financed…

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