Ray Dalio

Let's call it one-tenth.

It's actually less than one-tenth is your money.

But let's call it one-tenth.

You have a certain amount of money up.

They give you the deposits.

You invest the money within these general guidelines.

So, for example, government bonds are safe from default.

So you buy the government bonds.

You think you're making a spread.

And then what happens is the government bonds go down in value at the same time as the people say, hey, I want to go take my money and put it someplace else.

So you don't have enough money.

And central banking works like that, except the government can print the money.

So the risk when it's a government is not that you won't get the money back unless, like in this particular case, for a bank.

It goes down in value, so you ain't going to get that back.

You're going to sell it.

But anyway, you described it very well.

What happens for the economy as a whole is then they print the money because they don't want defaults.

There's a tolerable amount of defaults, and then you get past a tolerable amount of defaults, and it just crushes everything.

And so they print the money.

And so this thing with the bank is not a Silicon Valley bank