Video by chriscobb_chosen

Let me show you how banks can go bankrupt in 60 seconds. So let's say you got somebody named John. John just made 10 bucks and he don't know what to do with it. So naturally he's just going to put in the bank and say, here's my $10, just babysit this and keep it for me.

And they say, we would love to do it. Now what the bank does is they take John's 10 bucks, they leave one here, and then someone says, well, I would love to buy a house, but I need about $4. And the bank says, well, here you go, take four of John's dollars. He's actually not using it and you can use it to buy a house.

Just make sure you pay this back and give us interest. And somebody else might say, well, I would like a new car right now, but I need $3. Well, the bank is going to say, here's $3 of John Dollars, and I'll let you use it. Just do me a favor. Pay us back with interest.

We got to make some money from this. And someone looks at this and says, oh, my kids are super smart. They might be the next lawyer, doctor, but I don't have enough money to send them to college. Well, the bank says, here's $2 of John Dollars. Don't worry about it. He doesn't know.

Just pay me back with interest, okay? And John says, well, man, the brakes on my car just went out. I need my $10 back. and he goes back to the bank and the bank says, you only have $1 here. Now we can give you all 10 back, but it's gonna take us three, four, five business days

to get it back to you. Now, John is super angry because he put $10 in and he only has access to one. This is what happened to Silicon Valley Bank. This is exactly how banks go bankrupt because they're loaning more money than they actually have. Now, if you wanna learn more about this