Crisis Scenario 17

Scenario 17
The gray nation has the largest economy in our imaginary world. This means that they make and spend the most of any of the four nations. For decades, banks in the gray nation have been making large loans (for homes, small businesses, etc.) to people who are a high credit risk (that is, they barely make enough to pay the loans back. Recently, a large number of homeowners have foreclosed (been unable to make their mortgage payments). As a result, the banks are repossessing homes and having to sell them for less than they are worth to recover their money.
This problem has increased homelessness, decreased the public’s trust in the banking system and caused large banks to declare bankruptcy. The banks are asking the government to bail them out using tax money so that they won’t lose people’s savings accounts.