Glass–Steagall Act of 1933
Okay kiddo, imagine you have a piggy bank where you keep all your money. You love your piggy bank because it keeps your money safe and you can buy fun toys when you have enough money.
Now, imagine if your piggy bank was also used to keep your parents' money safe. This might not be a big deal if your parents were responsible with their money, but what if they decided to take some of your money from the piggy bank to buy things for themselves? That would be unfair, right?
That's kind of like what happened with banks in America a long time ago. People would put their money in the bank to keep it safe, but the banks would also use that money to invest in things like the stock market. Sometimes, the banks would make bad investments and lose people's money.
The Glass-Steagall Act of 1933 was a law that said banks had to separate the money people put in to keep safe (like your piggy bank) from the money they used to invest in the stock market. This way, if the bank made a bad investment and lost money, it wouldn't be the people's money that they lost.
It was a way to protect people's money and make sure that banks were being responsible with it. That's why it was a really important law at the time, and why some people still talk about it today.
Now, imagine if your piggy bank was also used to keep your parents' money safe. This might not be a big deal if your parents were responsible with their money, but what if they decided to take some of your money from the piggy bank to buy things for themselves? That would be unfair, right?
That's kind of like what happened with banks in America a long time ago. People would put their money in the bank to keep it safe, but the banks would also use that money to invest in things like the stock market. Sometimes, the banks would make bad investments and lose people's money.
The Glass-Steagall Act of 1933 was a law that said banks had to separate the money people put in to keep safe (like your piggy bank) from the money they used to invest in the stock market. This way, if the bank made a bad investment and lost money, it wouldn't be the people's money that they lost.
It was a way to protect people's money and make sure that banks were being responsible with it. That's why it was a really important law at the time, and why some people still talk about it today.