The unpredictability of it all means most of humanity won't expect it. Moreover, such a wide-reaching problem with near-infinite effects on civilization is bound to have large, complex and unrecognized implications that lead to systemic crises.
Risks that aren't recognized aren't properly mitigated. Unmitigated risks can continue to grow as the financial system keeps feeding them air. If a risk is misunderstood or unknown the financial system won't measure it, won't count it and will unintentially overexpose to it.
These various unmitigated risks can blow up and create the next financial crisis - there are a number of potential scenarios. Here are just a couple of examples:
- Housing and financial crisis triggered by uninsurable housing in Florida.
- Major crop failure and the collapse of agricultural production leads to mass default on agricultural loans, properties and counterparty agreements.
- A major storm results in massive insurance claims sending insurance providers into bankruptcy.