… or when the capitalism was destroyed
It all started with people wanting to live above their possibilities: dreaming big with mansions on the beach and faster cars and banks giving them credits to fulfil that desire. However, banks are not naïve, they knew that in a near future that borrowed money would come back to them with a juicy profit. After all they’re banks not charities, if you can’t pay for your glorious mansion’s mortgage they will take your house, your car and everything they can from you.
A huge bubble was created and… the bigger the bubble, the bigger the explosion. The situation around the most developed countries was unbearable, so the logical end arrived: it all crashed. The third most powerful bank in the US, Lehman Brothers, collapsed causing the most critical crisis ever imagined.
As it happened back in 1929, Wall Street, the core of the economic market, was the first to feel the break down with a domino effect that made many companies go bankrupt.
The first world could see the most dangerous effect of globalization in the economic market where the flight of an American butterfly may cause an earthquake in Madrid, Berlin or Milan Stock Exchange.
The strong image of Lehman Brothers’ workers leaving their offices with just a cardboard box illustrated perfectly the whole situation. When a crash comes, no matter its origin, all you can do is put the most important things you own into a box and walk away.
But ten years after this life changing event: Have we learnt?; Will we be more cautious when it comes to money business? Honestly, I don’t think so.
Experts say that in fewer than 20 years time we will have another economic crash.
I’m going to tell you a ‘secret’, it will happen and this time it’ll be even severe because human beings don’t hold their horses and think twice, we, the mankind, like to act impulsively, we just can’t help it! As it’s wisely said: ‘Humans are the only animal capable of stumbling twice with the same stone’.
Because we all know, at the end, banking always wins…