Wednesday, November 4, 2009

banks and CRISIS!

Banks have a very intelligent way to work.
First they start by getting money from customers, giving them a little percentage to them for having their money in that certain bank. Then, they lend all that money to people with a lot more interests than what they actually lend. This is the way banks win money. And all the money is always circulating.
BUUUT if every person wants to take their money it will be a big problem because the bank doesn't have all the money.
I think that if this problem occurs a big caos can occur in the world.
For example, this year since there was a very bad management of all the money the crisis arived. This already happened years before in the "Great Depression" but USA didn't learn the lesson and they repeated the same mistake. And we still can't get over it completely.
If we continue like this and don't learn from the past 2 mistakes, the next crisis can be much worst.