Warren Buffett on why the next financial crisis is unavoidable: Greed

“People start being interested in something because it’s going up, not because they understand it or anything else. But the guy next door, who they know is dumber than they are, is getting rich and they aren’t,” he said. “And their spouse is saying can’t you figure it out, too? It is so contagious. So that’s a permanent part of the system.”

In the weeks after Lehman Brothers’ collapse on Sept. 15, 2008, Buffett’s Berkshire Hathaway took advantage of the financial meltdown by making big investments in Goldman Sachs and General Electric.