What's a SIMPLE definition of a financial crisis?

Simple definition:

A period of deflation (price deflate to lower level) after a long period of unsustainable inflation (bubble).



Understanding:

Financial crisis is actually a good thing. It is a good thing because asset prices are returning back to normal level that is at a pre-bubble level. Imagine an asset being speculated and inflated from $10 to $100 within just a few years. Nobody knows what is the economic justification for the 10x price increase. Sooner or later, everyone realize the economy is just not that bullish to support such high asset price. Thus, the price starts to fall when everyone starts to sell off this $100 asset while they still have the chance. Financial crisis is not bad. It's only a bad thing to the market speculators who bid up the asset price to $100 and trying to bid it up further beyond $100.



Unemployment:

Financial crisis does NOT necessarily have to result in massive unemployment. It is just the US government's inability to solve the problem, relying way too much on printing cheap money to fuel the economy. Economy is always about creating jobs, NOT consumption. Without a job, nobody would spend any money.What's a SIMPLE definition of a financial crisis?
The term financial crisis is applied broadly to a variety of situations in which some financial institutions or assets suddenly lose a large part of their value or have a liquidity problem.



A crisis in the financial sector and the financial markets.What's a SIMPLE definition of a financial crisis?
Simple:



1. When I get laid off and can't find a job.

2. When my wife gets laid off and she can't find a job

3. Once my stock portfolio and 401-K/IRA savings have been decimated by a bear market



That would be my financial crisis. Yours may differ.What's a SIMPLE definition of a financial crisis?
There is none. Watch, ask anyone you know about USA's debt situation. Then ask them why it's bad. No one will know. I guarantee it.