How good is banking?
Well keep in mind that a bank is basically just a set of books. On one you have the assets of the bank, which are mostly loans. On the other side you have the liabilities of the bank, mostly deposits such as CDs and other accounts.
Some people may get the impression that a bank is a building full of money. That is not the case at all.
A problem comes in when the houses backing up the loans drop in value and you have a lot of foreclosures. Then the bank is in trouble.
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