2010–14 Portuguese financial crisis
So imagine you have some money in your piggy bank. Now, imagine everyone in your neighborhood has a piggy bank too.
Now, let's say some people in your neighborhood were spending way more money than they had in their piggy bank. They wanted to buy more toys and candy than they could afford, so they borrowed some money from the bank.
But things started to get really bad when some people couldn't pay back the money they borrowed. Now the bank had less money and they were worried they might not get their money back at all.
And then things got even worse when some people lost their jobs and couldn't earn any money to put in their piggy banks. So they had a harder time paying back what they had borrowed from the bank.
This is kind of what happened in Portugal between 2010-2014. Lots of people borrowed lots of money to buy things they couldn't really afford. And then, when the economy got really bad, lots of people lost their jobs and the banks started losing money.
This caused a huge financial crisis in Portugal, where lots of businesses had to close down and lots of people struggled to make ends meet. It was a really tough time for everyone involved.
Now, let's say some people in your neighborhood were spending way more money than they had in their piggy bank. They wanted to buy more toys and candy than they could afford, so they borrowed some money from the bank.
But things started to get really bad when some people couldn't pay back the money they borrowed. Now the bank had less money and they were worried they might not get their money back at all.
And then things got even worse when some people lost their jobs and couldn't earn any money to put in their piggy banks. So they had a harder time paying back what they had borrowed from the bank.
This is kind of what happened in Portugal between 2010-2014. Lots of people borrowed lots of money to buy things they couldn't really afford. And then, when the economy got really bad, lots of people lost their jobs and the banks started losing money.
This caused a huge financial crisis in Portugal, where lots of businesses had to close down and lots of people struggled to make ends meet. It was a really tough time for everyone involved.