Global financial crisis in December 2008
Okay kiddo, so back in December 2008, there was a really big problem with money all around the world. Lots of people had borrowed more money than they could pay back and they started losing their homes and not being able to buy things they needed. This made it really hard for them to keep earning money and for companies to keep making money too.
Because so many people were having trouble with money, a lot of big banks and businesses started to have problems too. Some of them had made really risky bets with their money and when those bets didn't work out, they lost a lot of money too. This made people really worried that the banks might not be able to pay back all the money they had borrowed from other people.
When people get really worried about money, they start to panic and they might try to sell all their things or take their money out of the bank. This can cause even more problems because it means that companies and banks don't have as much money to work with. It's kind of like everyone trying to get out of the door at the same time and getting stuck.
So, the global financial crisis in December 2008 was a really big problem with lots of people and companies losing lots of money. It made it really tough for the whole world to work together and make things better. It was like when you spill your juice on the floor and it keeps spreading and making more of a mess, but with money instead of juice.
Because so many people were having trouble with money, a lot of big banks and businesses started to have problems too. Some of them had made really risky bets with their money and when those bets didn't work out, they lost a lot of money too. This made people really worried that the banks might not be able to pay back all the money they had borrowed from other people.
When people get really worried about money, they start to panic and they might try to sell all their things or take their money out of the bank. This can cause even more problems because it means that companies and banks don't have as much money to work with. It's kind of like everyone trying to get out of the door at the same time and getting stuck.
So, the global financial crisis in December 2008 was a really big problem with lots of people and companies losing lots of money. It made it really tough for the whole world to work together and make things better. It was like when you spill your juice on the floor and it keeps spreading and making more of a mess, but with money instead of juice.