Financial Crises seem inevitable in the current American paradigm, however in actuality, crises are anything but regular. At least they are supposed to be. However in the past few decades, financial crises have become a staple of the global economic identity. Whether this is attributed to a rise in hyper-capitalism methods or to a changing global paradigm shift about how finance should be connected is up in the air. I wish to shed some light on this discussion.

Financial and economic crises are usually the result of some freak of nature event. The Great Depression of the 1930's was largely triggered due to a large amount of the American population spending beyond their means. The crisis of the 1980's was due to large amounts of debt being traded in Savings and Loans which imploded the market that was previously inflated. The financial crisis of 2008, amidst other things, was caused by the mortgage market bubble popping, causing several large investments to be destroyed and crippling global economies. Two trends have been exemplified by these crises in the past.

The first of these trends is that the crises that have taken place in the past were all exemplified by crises of debt. As debt accumulates, practices become more risky as the amount of capital against one's assets increases. This threatens the ability of the individual to pay off that debt and as a result, property is lost without being physically destroyed and financial capital is erased without being appropriated elsewhere. It truly is a confusing phenomenon in which financial wealth can be destroyed but physical capital exists in a sort of limbo - being both physically there yet owned and un-owned at the same time in the market place.

The second, more important trend, is that these dynamic crises occurred largely in response to paradigm shifts across the American mode of thinking. In the Great Depression, spending became a staple part of the American lifestyle as they spent beyond what their incomes could account for, accumulating large amounts of debt that rocked the country. The Savings and Loan crises was marked by risky lending practices along with malevolent policies pursued by countries across the board to get Americans to spend more into a risky market, thereby tantalizing them with the supposed increased wealth it would bring them. The financial crisis was also marked by the stripping away of safety measurements by different companies and individuals in their investing strategies by pursuing toxic mortgage-backed securities that were destined to fail and in the financial institutions lowering their standards of credibility and leverage ratios.

The financial crises of the past could have been stopped and show what to look for in the next financial crises. As crises become more staple in American society, there comes a need to learn to prevent such atrocious events. The "smoking gun" of economic crises lies in the mindsets of the American people and corporations in their lending practices, risky modes of investing and overall economic models. The next presidency looms on, showing off an inherent method of thinking that is more risky and less focused on regulation and limits. It creates a dangerous environment that could very easily create another crisis.