Comments by "" (@craigkdillon) on "Business Basics" channel.

The Great Depression really happened with the banking collapse, not the stock market crash. Most people were not involved in the stock market, and were not affected. However, when the banks collapse, companies and people not involved in stocks, were affected. Companies could not pay their employees, and people lost their personal savings. THAT was the disaster. Moreover, people stopped trusting banks. They stopped accepting checks.
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@719Flowers Yes. China is in for a bad time. However, I do not think the rest of the world will suffer too badly. Some suffering as the world adjusts to China's collapse. But, that is already being done. Companies are moving out of China. If you look in stores, you will find more and more items made in other countries, which had been made in China in the near past.
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I remember, 12 years ago or more, pointing out the craziness of China's real estate, and that it would some day come crashing down. I was ridiculed and laughed. People thought I was stupid. The Chinese juggernaut was never going to end....or so it seemed. I have to admit, it has taken way longer than I ever expected for the crash to happen. But, it is here.
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@karabelle67 Sounds like a real child of the Depression. Economists throw around words like Depression and Recession, and they give sterile definitions of them. The harsh human suffering and reality don't get communicated. Your Grandma was not weird or strange. She was a child of her times. ALL people that lived through it were marked by it. People saving money in their mattresses was not a figure of speech. It was done by millions.
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@lawndart.4481 Disaster or no,, popcorn will always exist.
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@kat64470 Disagree.
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@thedukeofchutney468 Not much anymore. I hardly ever write a check. I have checks. But, years might go by between writing them.
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That is how currency is created. Bank gets $100. Lends out $1000. Thus $900 is created. The new money is backed by the equity of the home. The dollar is not backed by gold or silver, but by our real estate. Now, in China, with the collateral being non-existent, the yuan is in danger of collapsing, I would think.
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An economy runs on trust. Without trust, banks cannot exist. Without trust, a currency fails. The people of China are now losing their trust in their banks, real estate developers, and all their financial institutions. As this trust fails, so too, will fail the Chinese economy, and the CCP.
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They are in deep trouble. A bank failure is not limited to just the bank that fails. Trust in all banks is shaken. Runs on sound healthy banks may also happen then. No bank can withstand a run. Banks are built on trust and confidence. Once lost, banks cannot function. China is in deep trouble.
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