The Role of Booms in Financial Crisis

The US has had many economic expansions in its history but not all of them have led to a financial crisis. The booms that incubate financial crises is extraordinary growth in credit particularly associated with relaxation in regulatory oversight. Booms tend to create a demand for swindles there's something about a boom that brings out the animal spirits as John Maynard Keynes called them. A crisis tends to be triggered by something real a shack of some kind surely the earthquake in San Francisco in April 1906 would qualify.