What "always" happens just before a financial crisis

The video explains that a financial crisis arises not from a sharp fall in asset prices itself, but when high leverage and cash shortages spread to banks and lenders. The seven stages it presents are the buildup of vulnerabilities, a triggering event such as falling prices, demands for additional cash, forced sales of assets that can be sold, a vicious cycle of selling and falling prices, damage to the real economy as lending contracts, and responses by governments and central banks. It compares 1929 and 2008, when different triggers spread into banking instability and a credit crunch, with the cases of the US Treasury market in 2020, the UK bond market in 2022, and Silicon Valley Bank in 2023, where rapid intervention prevented a broader crisis. The video warns that risks today have also shifted outside banks to private credit, hedge funds, pension funds, and refinancing pressures in commercial real estate. However, it emphasizes that high debt or stock prices do not tell us the date of a crisis; what matters is how a shock translates into cash demands and forced sales at particular institutions. It suggests that individuals check in advance the emergency funds they would need if they lost their jobs, the scope of deposit protection, debts subject to rising interest rates, where they keep money they will need soon, and how long it takes to withdraw invested funds. It also recommends putting expenses to cut during a crisis, institutions to contact, and loans approaching maturity into a single-page plan to avoid having to sell good assets hastily at distressed prices. All directional outlooks are the speaker's conditional judgments, not definitive predictions of short-term prices.