Here's an interesting video that attempts to explain the recurring financial bubbles and crisis in the past 2 decades. A few months ago, Nobel Prize winner Paul Krugman warned that we may be entering a 3rd depression [Krugman : The 3rd Depression]. In the past few weeks a currency war threaten to break out as nations try to devalue their currencies to gain a competitive advantage[Time: Who would win a currency war]. It is hoped that the G20 summit next week[Link] will help to avert a currency war and prevent economic instability. In May this year, a sovereign debt crisis broke out in Europe and caused markets around the world to plunge. It is hard to say when the next financial crisis will occur but the potential for a crisis exists and according to the video the risks are increasing. While stock markets and property markets rally to new highs, it is so easy to become complacent and forget the risks.