By Antonio Graceffo

I did not go into banks and do an audit. Neither did I do an in-depth analysis of the current banking industry dilemma. I wrote this piece, however, just to explain in simple terms, how a bank can become insolvent because of poor credit policies and over-inflated assets.

Banks make money by making loans to people. The largest loans most consumers will ever take are home loans. The more home-loans a bank makes, the more profit they make. ... (more)