How Does This Is What "Always" Happens Before A Financial Crisis Work?

This is what “always” happens before a financial crisis, it’s like everyone in your class starts bringing extra snacks to school every day, and no one notices they’re doing it.

Imagine you're in a classroom where the teacher gives out gold stars for good behavior. At first, everyone gets 10 gold stars each week. But then, some kids start getting 20 gold stars, and more, without anyone asking why.

Soon, every kid is bringing extra snacks to school just to get more gold stars. The teacher doesn’t stop them because it seems like a fun way to reward good behavior.

But here's the catch: no one actually needs all those extra gold stars. They’re just pretending they do, and the teacher is happy because everyone looks so excited.

This is like what happens before a financial crisis: people start doing things that seem fun or helpful, but in reality, they're just pretending everything is better than it really is, and no one notices until it's too late. This is what “always” happens before a financial crisis, it’s like everyone in your class starts bringing extra snacks to school every day, and no one notices they’re doing it.

Imagine you're in a classroom where the teacher gives out gold stars for good behavior. At first, everyone gets 10 gold stars each week. But then, some kids start getting 20 gold stars, and more, without anyone asking why.

Soon, every kid is bringing extra snacks to school just to get more gold stars. The teacher doesn’t stop them because it seems like a fun way to reward good behavior.

But here's the catch: no one actually needs all those extra gold stars. They’re just pretending they do, and the teacher is happy because everyone looks so excited.

This is like what happens before a financial crisis: people start doing things that seem fun or helpful, but in reality, they're just pretending everything is better than it really is, and no one notices until it's too late.