Money can't stay at one place as it need to be in circulation to make more money. But in the recent years when our purchasing capacity has been declining by higher extent, could the Rich would be able to pay back to banks and banks back to the us.These days we mostly hear about the term of Credit Default. That is due to non-payment of loans and interest. The banks are relying on the new depositors to pay immediately to the old depositors who request for their money. If new account openings decline and all the depositor comes to take out their money, could the bank be able to pay???? No, it will go BANKRUPT!!!!
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Sunday, 8 September 2013
Even Banks Runs On Pyramid......
Money can't stay at one place as it need to be in circulation to make more money. But in the recent years when our purchasing capacity has been declining by higher extent, could the Rich would be able to pay back to banks and banks back to the us.These days we mostly hear about the term of Credit Default. That is due to non-payment of loans and interest. The banks are relying on the new depositors to pay immediately to the old depositors who request for their money. If new account openings decline and all the depositor comes to take out their money, could the bank be able to pay???? No, it will go BANKRUPT!!!!
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