Why Bank Bailouts Happen

Most people don't realize bank bailouts weren't designed to protect bankers. They were built

to protect you. Banks don't just hold their own money. They hold yours. They process your

paycheck. They move payments between businesses. They keep the entire financial system

running. When a big bank fails, it doesn't fail alone.

In 2008, Lehman Brothers collapsed and credit markets froze overnight. Companies couldn't

make payroll. People couldn't access their savings. Other banks panicked. That's when "too

big to fail" became a household phrase. Governments don't bail out banks because they like bankers.

They do it to stop a chain reaction. One bank goes down, others lose confidence, customers withdraw