So your little kiddo wants to know about the 2008 recession. Her's a bed time story to help the little Tiger out.

So it goes a little something like this:

You lend a quarter to Annie today and she says she'll give you two quarters tomorrow when she gets her allowance. (But you know she always gets in trouble and never gets her allowance). You then tell Bob if he gives you a quarter and a dime, you'll tell Annie she needs to pay him the two quarters instead of you. Bob is a little worried because he knows Annie almost never gets her allowance, but an older kid named Moody tells him it's a good bet because Moody thinks Annie is going to get her allowance. Moody is supposed to be very trustworthy, honest and smart, so Bob agrees. However, Moody is being paid by you to tell people whether or not Annie will get her allowance. If he tells everyone that Annie probably won't get her allowance and be able to pay back the two quarters, you're going to stop paying him. And maybe Moody isn't as honest and smart as people think he is. Now you go talk to Charlie and bet him a quarter that Annie's not going to pay Bob. Charlie's a little more wary than Bob and he isn't sure that Annie is going to pay. He says he'll only agree to the bet if you pay him five dollars in the event that Annie pays. You say sure. Annie gets in trouble and she gets no allowance. Bob doesn't get any money from her. Charlie pays you a quarter because he was wrong. Everyone get mad at Moody and he says "oops". You, with your two quarters and a dime, go buy some ice cream and laugh about how smart you are for turning one quarter into two quarters and a dime. You are Goldman Sachs.