We might be in a similar situation today; it's possible that markets peaked last month. And we're now in the "stew and fester" phase where prices gradually decline while people keep hope that the boom times are coming just around the corner.
And then, within a tear or so, something sets off another huge crisis that pops the bubble once and for all...just like the bankruptcy of Lehman Brothers did back in 2008.
We won't know what that event will be until after it happens.
But what we do know for sure is that the last financial crisis was caused by too much idiotic debt in the system.
Banks were lending money to legions of borrowers who had a history of not paying their debts...and then actually presented like these toxic loans were great investments.
Today, we're seeing the same stupid debt work its was onto the corporate and government sectors.
Instead of giving million-dollar mortgages to unemployed borrowers with a history of default, investors are loaning billions of dollars to money-losing zombie businesses, or to governments that are already in debt up to their eyeballs, all while pretending these are safe, credible investments.