Contrary to many claims at the time, there is a considerable literature prior to the 2007 crash which demonstrates that the circumstances necessary for impending crisis existed. For example, Taylor (1999) noted that “….in a decade perhaps only a dozen mammoth financial institutions may remain….

in the next three to five years, European banks profits will come under severe pressure” (p.60), Nabudere (2009) noted that there are many similarities between the crashes of the 1980s and 2007, and in a history of financial crises, Winter (2005) suggests that they typically have a signature context of a tendency to speculate and lax credit controls. In short, many commentators and researchers suggest that it could have and indeed was predicted, but the portents were ignored. Read more…