Quote from: gmak on April 07, 2013, 07:02:10 AM

were the banks not created as a service/faculity to safegaurd savings$?

No. Or if they were in the past, they certainly aren't today. Banks exist to provide loans so that people can pay for things they don't have the cash for. They do this by taking your deposit, lending most of it out to other people, charging those people interest, then passing a portion of that interest on to you and keeping the rest as profit. If you've ever wondered exactly how a savings account earns interest (the money can't just appear out of thin air, after all), now you know.

Quote from: gmak on April 07, 2013, 07:02:10 AM

how can the banks - fund missmanagement - result in the tapping of ones savings$ ? no security in place to monitor this?

Obviously, this system only works if the loans are repaid before people try to withdraw their money. If too many people default on their debts, or too many people withdraw their money, hilarity ensues.