Week 7 Free Post

This week I am going to talk about how does bank take role in economics field. I find this cartoon which can show the relationship between citizens, banks and the government. As we know that the citizen invest their money in the bank and the bank will provide a variety of strategies to attract people to put their money in the bank and later on, people can get more money than the initial money based on the interest rate. As the bank has money, they lend those money to the firms and companies. The banks are like the finical intermediations that borrow money from citizen and lend money to firms.

According to the cartoon below, the banks takes the money from the citizen's pocket, and the government does nothing except sleeping. It seems that the citizen is the most sufferer in the economy recession.

Actually, when the depression of economy happen, both of the banks and governments suffer from the pain. The Great Depression in 1992 had both influenced the banks and government. Even though the citizens are the most sufferers during the period that lots of people lost their jobs, government and banks also suffer from the depression. Some banks has rusted and the government has a lots pressure during the depression period. 

Work Cited:

The Economic Collapse. What am I Missing Here. Oct.11.2011. Web. Oct.22.2013.