It’s news that Alan Greenspan told the BBC in a one-year anniversary special on the financial crisis that more crises are coming. It doesn’t sound as though he’s talking about a second-wave of this particular shock. Instead he’s just making the obvious point that even those who know their history are doomed to repeat it, particularly when it concerns excess, money, bubbles, and psychology.
“They [financial crises] are all different, but they have one fundamental source,” he said.
“That is the unquenchable capability of human beings when confronted with long periods of prosperity to presume that it will continue.”
Speaking a year after the collapse of US investment bank Lehman Brothers, which was followed by a worldwide financial crisis and global recession, Mr Greenspan described the behaviour as “human nature”.
You can watch an (annoyingly non-embeddable) video of Greenspan here, though we think you get the idea.