Can banks fail?

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Can banks fail?

Sometimes, things can go wrong

Can banks fail?

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Can banks fail?

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Can banks fail?

In RARE circumstances, things can go wrong. If enough people can't pay back their loans over a period of time, the bank loses its savings.

Can banks fail?

Something like this happened in 2008. It was after this that even more rules were put in place to keep savings safe. And it was after this that 'cryptocurrency' was born.

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A perfect storm needs to be created for the banks to fail. This means that a lot of very different factors all need to come together at exactly the right moment in time to further this outcome. 

This perfect storm came together in 2008 in America. We live in a highly connected world where what happens in one place directly impacts a bunch of other places. The banks did fail in 2008. A lot of people lost their jobs and savings were lost. When something goes wrong, we don’t lose hope, but work together to find solutions.

The world has recovered from 2008. However, understandably, there was a lot of anger towards the banks who were supposed to keep our money safe. One of the new inventions after the crash of 2008, was ‘cryptocurrency‘. Digitally secure forms of money. More on this next week!

 


How does a bank work?

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