Was your money safe?
The so called Banking institutions seem to have broken the very principles they were made for. Keeping your money safe was not really on their minds in modern banking. As demonstrated in 2008, things haven’t been any good for anyone.
For basic information, here is what happens - when your deposit your money in a bank, the bank never opens a special box for you under you name and lock it somewhere safe where no one can reach it. To make maximum profits, this what they do- your money (without your permission) is mobilised to finance investments made by the bank. Ever though if you’d go on your online banking website and check your balance, it will be the same but its actually isn’t there. Therefore with positive returns on investments made by banks, the banks are more than able to pay you back as well as invest elsewhere.
You may ask what’s wrong with it as the banks pay you back on time and in full. But the problem is if one day everybody rushes to the bank to withdraw their money all at once, not everyone will get their money. Also, there is a chance that an investment made by the bank might go bad, they will drag you down with them. Before these investments are made, your permission is not asked. The secret bank society in Basil has fail to do what they were made to do. It just felt like their were a bunch of bankers and regulators who meet together and watched fosters tv the whole day.
This failure of regulation, a regulation which could have acted like a sponge in a situation where a bank would go into debt, was never in place. There was nothing to stop them, no safety barrier.
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