Bankruptcy of Lehman Brothers

Okay, so let's pretend you have a piggy bank where you keep all your allowance money. Now, imagine if you had a lot of money in there, like hundreds or even thousands of dollars. But then, something bad happens and you lose all your money. That's what happened to Lehman Brothers, which was like a really big piggy bank for grown-ups.

Lehman Brothers was a company that had lots of money from people who wanted to invest their savings, just like how you put your allowance money in your piggy bank. But then, in 2008, the economy was doing really badly, and lots of people couldn't pay back the money they owed to Lehman Brothers. This meant that Lehman Brothers didn't have enough money to pay their own bills and debts.

So, just like how you might ask your parents for help if you lost all your allowance money, Lehman Brothers asked the government for help. But, the government didn't want to give them any more money because they thought that Lehman Brothers wasn't being responsible with its money.

As a result, Lehman Brothers had to declare bankruptcy, which means they had to admit they didn't have enough money to pay their bills and debts. This was a really big deal because Lehman Brothers was a really important company in the financial world, and lots of other companies had invested money with them too.

The bankruptcy of Lehman Brothers caused a lot of problems for the economy. It made people scared that other big companies might go bankrupt too, and it made it really hard for people to borrow money or get jobs. It took a long time for the economy to recover, but eventually things got better again.

So, just like how you have to be careful with your piggy bank and not spend all your money too quickly, companies like Lehman Brothers have to be careful with the money they borrow and invest, so they don't end up bankrupt like they did.