No, crashes happen because of a common misunderstanding of some important market variables (or war, or cataclysms like bad weather). The last crash happened be

No, crashes happen because of a common misunderstanding of some important market variables (or war, or cataclysms like bad weather). The last crash happened because of systematic soft-fraud all the way through the housing chain from individual borrowers, to lenders, VPs, ratings agencies, bankers, fund managers not doing their jobs, excessive risk etc.. No single issue would have caused a problem but collectively it meant everything was vastly mis-priced. The next break will happen because of the China slowdown when the world discovers more materially how much China numbers have been fudged for the last 30 years. We know it, but kind of ignore it. China won't crash but it'll slow down more quickly than anticipated which could cause some bubbles to pop where there was that dependency. Markets can also over-correct. If most market participants have really good information, ahead of time, and act rationally - there's no need for crashes. The Canadian economy doesn't go into hard recession - almost all of Canadian 'swings' are due to American pull. Canada has always been focused on 'stability' more than anything else (i.e. freedom, growth, exceptionalism).