Why Do Economies Sometimes Crash Overnight?

Economic crashes are like a big game of Jenga, when people lose confidence, the whole tower can fall quickly. Imagine everyone stacking blocks, thinking it’s safe, but if one person pulls out too many at once, everything comes down in seconds.

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Examples

  1. A toy store owner who buys too much stock at once might lose everything if no one buys the toys.
  2. If everyone assumes the economy is strong and then suddenly believes it’s weak, the value of money drops quickly.
  3. A family spends all their savings on a house expecting prices to rise, but when prices drop suddenly, they lose money overnight.

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