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Where will the next financial crisis come from? The short answer is: We don't know. We can, however, look for vulnerabilities in the system that, if left untreated, can develop into problems.
What do we mean by a vulnerability? It is an area of weakness that can amplify and spread an unexpected economic shock, increasing the level of risk to the financial system. Imagine the impact of an earthquake on a house built on sand, as opposed to bedrock. In the financial world, cracks in the bedrock can arise from high levels of