'You can't live in Alice's Wonderland forever': Lessons learnt over the past decade and what could cause the next crisis

Ten years on from Ben Bernanke's speech

A decade ago, on 20 July 2007, former Federal Reserve chairman Ben Bernanke warned failures in the US sub-prime lending market could cost up to $100bn.

At the time, investors appeared to shrug off concerns about serious problems brewing in the banking sector, with the Dow Jones Industrial Average closing above 14,000 for the first time. Little did they know the world economy was about to descend into crisis, culminating in the collapse of banking giants Bear Stearns and Lehman Brothers in 2008. The fallout from the crisis, that rocked global institutions and markets, prompted much tighter regulation of the banking sector and unleashed a massive quantitative easing stimulus package across developed economies, which is only just starti...