This is a serious question. My math teacher said all math connects. And then asked if banks going bankrupt has anything to do with the area of a triangle (because we were studying it) if there is any way it does, I want to find it!
No. THere would not be any logical way that the banks would be related to 1/2 of the base times the height of a triangle. A bank loaned out money to people who were unable to pay the money back. If the bank makes more wise investments than "nonperforming" investments, they stay in business. When the bad loans outnumber the good loans, the bank is insolvent. They can either close or ask to be "bailed out". Tell your teacher that VaR was the applicable math formula for the bankers and it failed. The bankers made a formula called Value At Risk to determine if an investment was risky or safe. Then they piled money into the "safe" ones. Well, the formula was only 99% reliable. When the 1% happened, all the money was wiped out.
