I think it is an interesting topic because we are always blaming the government for everything and the economic crisis is not the exception to the rule.
Regularly I hear people in the radio or in the restaurants talking about the economic crises, that the economy this and the economy that, and they always blame our government for it. But then I think, who is it responsible for it? I think that to be able to answer the question we first need to know how banks work.
We know that a bank works basically by winning the trust and confidence of people, and that if one of these is broken very bad things can occur, like for example leading us to an economic crisis. Like the example that we saw were a bank had declare that they were not going to be able to keep lending money, up to this point everything was completely fine with the bank. Later after that announcement the people started too freaked out and started to withdrawal all their money at the same time all of their money from banks. Because of this the blanks started to run out of money c cause in theory they have the money but since they invested that money the banks weren´t able to give back to all people all of their money, leading to an economic crises.
And who is it that because of one bank the rest started to fall apart? Well, because of the paranoia that the people had and because as we know banks borrow money from other banks.
Therefore I think that the ones that should be blamed is us, cause at the end we are the ones that in first place started to stop paying our mortgages and the ones that were withdrawing all the money from the banks. Maybe if banks could have predicted people’s behavior they would never had made those announcements and the money from the banks would have never been withdrawal.
Regularly I hear people in the radio or in the restaurants talking about the economic crises, that the economy this and the economy that, and they always blame our government for it. But then I think, who is it responsible for it? I think that to be able to answer the question we first need to know how banks work.
We know that a bank works basically by winning the trust and confidence of people, and that if one of these is broken very bad things can occur, like for example leading us to an economic crisis. Like the example that we saw were a bank had declare that they were not going to be able to keep lending money, up to this point everything was completely fine with the bank. Later after that announcement the people started too freaked out and started to withdrawal all their money at the same time all of their money from banks. Because of this the blanks started to run out of money c cause in theory they have the money but since they invested that money the banks weren´t able to give back to all people all of their money, leading to an economic crises.
And who is it that because of one bank the rest started to fall apart? Well, because of the paranoia that the people had and because as we know banks borrow money from other banks.
Therefore I think that the ones that should be blamed is us, cause at the end we are the ones that in first place started to stop paying our mortgages and the ones that were withdrawing all the money from the banks. Maybe if banks could have predicted people’s behavior they would never had made those announcements and the money from the banks would have never been withdrawal.
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