Economy
Financial contagion lets one failing bank drag down others
HERE’S THE INTERESTING PART
The entire global banking apparatus is so incestuously interconnected that an isolated failure is almost mathematically impossible. Contagion occurs when one reckless institution trips over its own ledgers, immediately causing completely innocent counterparties to aggressively bleed capital. It proves that in modern finance, you are only ever as secure as the dumbest entity you trade with.
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