2008: Crash, Bank, Wallop
We often associate banks with strength, rigidity and control. Images of money, Roman architecture and unintelligible line graphs (which claim to represent the stock exchange) inundate the mind. But even institutions as robust as banks aren't invincible, a reality we ended up learning the hard way in the years of 2007 to 2008. It's common fact that these were the years in which most banks found themselves barely managing to stay afloat, and the word "Recession" appearing on the front page of pretty much every newspaper. But what really happened? More importantly, however, why? Before we dive into the intricacies of this complexity, let's talk about houses. Most of the times, people borrow money from the bank or lending firms in vast amounts to secure the purchase and ownership of a new house, otherwise known as a mortgage. Naturally, the new homeowner is required to pay back the loan over a several year fixture, repaying small deposits on a monthly basis with added...