Financial panic

Financial panic is when a lot of people become very scared and worried about money all at the same time. It can happen for different reasons, but it usually starts when people think that they might not have enough money in the future or that some bad things could happen that would make their money worth a lot less, like if they can't pay their bills or if they lose their jobs.

When financial panic happens, people might start buying things like crazy because they think the prices will go up soon, or they might start selling everything they have because they think prices will go down soon. This can create more panic, because when people sell lots of things, prices often do go down, and that makes people even more scared about their money.

Governments and banks often try to prevent financial panic by providing people with enough money and by making sure that everyone is calm and knows what is happening. They might do things like lower interest rates, give people money directly, or promise to protect people's savings. But sometimes even these things don't work, and financial panic can spread quickly, causing big disruptions in the economy and people's lives.