An economic crisis refers to a severe and widespread downturn in economic activity that often results in significant financial instability. This situation can manifest through various indicators such as high unemployment rates, a sudden decline in economic output, a dramatic fall in consumer and business confidence, and significant disruptions in the banking and financial systems. Economic crises can be triggered by various factors, including but not limited to, excessive debt levels, market crashes, declines in asset prices, or external shocks such as natural disasters or geopolitical tensions. The impacts of an economic crisis can be profound, leading to increased poverty, social unrest, and a lengthy recovery process for affected individuals and businesses. Measures to address an economic crisis often include government intervention, monetary policy adjustments, and fiscal stimulus aimed at stabilizing and revitalizing the economy.
Mistakes involving large sums can lead to potential financial catastrophes, highlighted by Citigroup's $81 trillion error. The incident was detected within ninety minutes and corrected swiftly without any funds leaving…