However, optimism is highly valued, socially and in the market; people and firms reward the providers of dangerously misleading information more than they reward truth tellers. One of the lessons of the financial crisis that led to the Great Recession is that there are periods in which competition, among experts and among organizations, creates powerful forces that favor a collective blindness to risk and uncertainty.

The financial crisis caused tremendous pain, but it also made us reevaluate what’s most important in our lives — things that have nothing to do with money. It was a time to get back to basics, to the values that have sustained us through troubled times before. For me, it made me remember the days when I was sleeping in my car homeless and searching for a way to change my life. How did I do it? Books!

But experience can be a difficult teacher, and it taught me that this story of economic insecurity is, at best, incomplete.

Cold War teaches the same lesson as World War II and, for that matter, most wars in recent history. Don’t let a ruling class of warriors and politicians squash the entrepreneurs. The same recipe that makes individuals rich makes countries powerful. Let the nerds keep their lunch money, and you rule the world.

When Baby Boomers grow up and write books to explain why one or another individual is successful, they point to the power of a particular individual’s context as determined by chance. But they miss the even bigger social context for their own preferred explanations: a whole generation learned from childhood to overrate the power of chance and underrate the importance of planning. Gladwell at first appears to be making a contrarian critique of the myth of the self-made businessman, but actually his own account encapsulates the conventional view of a generation.

The challenge for us is that no amount of studying or open-mindedness can genuinely recreate the power of fear and uncertainty. I can read about what it was like to lose everything during the Great Depression. But I don’t have the emotional scars of those who actually experienced it. And the person who lived through it can’t fathom why someone like me could come across as complacent about things like owning stocks. We see the world through a different lens.

One might think that a generation that has heard endlessly, from their more ideological teachers, about the rights, rights, rights that belong to them, would object to being told that they would do better to focus instead on taking responsibility. Yet this generation, many of whom were raised in small families by hyper-protective parents, on soft-surface playgrounds, and then taught in universities with “safe spaces” where they don’t have to hear things they don’t want to — schooled to be risk-averse — has among it, now, millions who feel stultified by this underestimation of their potential resilience and who have embraced Jordan’s message that each individual has ultimate responsibility to bear;

those who were born at the depths of one great crisis who would be able to cope with the next.

"Everything has happened before - not once, but over and over again. We may not be able to solve our problems through what are pompously called "the lessons of history," but at least we should be able to recognize the issues and perhaps avoid some of the solutions that have failed in the past. And we can take heart in our own dilemma by realizing that other people in other times have survived worse."

The first lesson of economics is scarcity: There is never enough of anything to satisfy all those who want it. The first lesson of politics is to disregard the first lesson of economics.

The Great Depression, like most other periods of severe unemployment, was produced by government mismanagement rather than by any inherent instability of the private economy.

You know the greatest lesson of history? It’s that history is whatever the victors say it is. That’s the lesson. Whoever wins, that’s who decides the history. We act in our own self-interest. Of course we do. Name me a person or a nation who does not. The trick is figuring out where your interests are.

"In the 1960's, some old-timers on Wall Street-the men who remembered the trauma of the 1929 Crash and the Great Depression-gave me a warning: "When we fade from this business, something will be lost. That is the memory of 1929." Because of that personal recollection, they said, they acted with more caution, than they otherwise might. Collectively, their generation provided an in-built brake on the wildest form of speculation, an insurance policy against financial excess and consequent catastrophe. Their memories provided a practical form of long-term dependence in the financial markets. Is it any wonder that in 1987 when most of those men were gone and their wisdom forgotten, the market encountered its first crash in nearly sixty years? Or that, two decades later, we would see the biggest bull market, and the worst bear market, in generations? Yet standard financial theory holds that, in modeling markets, all that matters is today's news and the expectations of tomorrow's news."

History teaches us that a crisis often causes problems to correlate in a manner undreamed of in more tranquil times.