[onreact-com]

Please read this for some basic understanding my dear non-"idiotic" friend:

"The root cause for the current crisis seems to be the excessive use of leverage.

To take an example, a company with a net worth of US$ 25 billion borrowed 26 times its net worth and creates leveraged funds of US$ 650 billion to invest or lend them. When a small portion of the company's investments turns bad, as is the norm for the industry, the company's capital is under threat. To put things in perspective a 3.8 percent misjudgment in their books was enough to wipe out their shareholders' capital of $ US 25 billion."

http://economictimes.indiatimes.com/Features/Financial-Times...

[jerf]

Your attempt to look knowledgeable would be much more effective if your conversation had any sort of coherence to it. Does that link address how a bank going out of business forces you to lose your home if you have a mortgage with that bank? (Presumably not, since it's not true.) You may have forgotten the beginning here, but it looks like the rest of us haven't.