Banking Explained - Money and Credit
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- čas přidán 11. 03. 2015
- Banks are a riddle wrapped up in an enigma. We all kind of know that they do stuff with money we don’t understand, while the last crisis left a feeling of deep mistrust and confusion. We try to shed a bit of light onto the banking system. Why were banks invented, why did they cause the last crisis and are there alternatives?
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i feel bad for this comment thread... As someone studying Financial Management in a master's degree right now i can say, you did a good job of explaining!
Most people here in the comments have no actual idea of how the financial market works and just repeat the same triggerwords, just like in politics. Needless to say, everyone in this thread thats bitching about banks, has surely their own bankaccount. If you are that much agaist it, dont spit out insults, do something productive!
Make someone of inflation, always there will be with the fiduciary monay.
Restock the 12 019 calendar pls
theres a bug while using INDONESIAN CAPTION in this video
*Do A Video On The Rise Of Cryptocurrency.*
"A banker is a fellow who lends you his umbrella when the sun is shining and wants it back the minute it begins to rain"
Thanos XD so true
Banks can't do that.
They can't make demands outside of the contracts.
SiMe...
@@johnstevens1020 Yes?
SiMe i think it was just a joke ;P
just sold a property in Washington DC and I'm thinking to put the cash in stocks, I know everyone is saying its ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $200k gains with months, I'm really just confused at this point.
Yes, a good number of folks are raking in huge 6 figure gains in this downtrend, but such strategies are mostly successfully executed by folks with in depth market knowledge
Very true. Despite having no prior investment knowledge, I started investing before the pandemic and pulled in a profit of approximately 950k that same year. In reality, all I was doing was getting professional advice.
glad to have seen this comment, please how do i contact your advIsor?
how can i participate in this? I sincerely aspire to establish financial future and I am eager to participate . who is the driving force behind your success?
I would say little diligence to "Dianne Sarah Olson" she is outstanding
The financial sector and derivatives may have a Hindenburg moment if the US Treasury market collapses. Rising market illiquidity in the $14.8 trillion U.S. Treasury market, according to Bank of America, might affect other financial markets.
There are many opportunities to make fantastic profits, especially in this depressed market, but such complex transactions can only be carried out by seasoned market professionals.
@@tatianastarcic I've been considering taking that path. I've kept a lot of stocks, but they're starting to depreciate, and l'm not sure if I should stick onto them or sell them. I believe restructuring my portfolio would be facilitated by engaging your investing coach.
"You don't rob a bank. The bank robs you" -Some guy, probably
Fr
Indeed
That mostly in US. On the world banks are heavily regulated. Still crisis hit worldwide because association.
@@TheRezro Nah banks been screwing people since forever. I don't even live in the US
Black Mask once said “If you have a gun, you can rob a bank. But if you have a bank, you can rob anyone.”
If that is the simplified version, I don't wanna imagine the real version
Time to take macroeconomics
I've studied High school of economics, now I'm first year in Uni. They never taught us this exact patterns. Not in such ways. I hope I find better ways to learn at my new Uni though.
I'm sure I know how banking works. :) It's not too complicated when you think about it and I have to say that from the time I posted my comment, things have changed in uni and I actually found a great teacher who has the ways to explain complicated, as you call them, matters in an understanding ways. Never stop learning.
Hunter Lehman he full version is dark and evil.
No wonder your company went bankrupt
IMPORTANT ANNOUNCEMENT: This was a video sponsored by the lovely (and patient!) folks at PSCU, thanks again for the support! What does this mean? It means that we got funding for doing this topic sooner than we would have done otherwise - the sponsor had no influence over the content of the video! This video represents our own research and opinion on the topic. This video is a bonus video, on top of our regular uploads.
The reason I’m posting this here is that we want to be super up front and honest about sponsorships - we do want to make videos that entertain you and that help make the world a little bit more awesome. But it is impossible to sustain ourselves with the youtube channel - we are too many people and the videos take too long to produce. So we will do sponsorships to make this CZcams channel more sustainable from time to time. How is this gonna work: Sponsors can pay us to do certain topics, or to have their project features at the end of the video (like the audible adds lots of STEM channels do). But the scripts will not be approved by a sponsor. Everything we tell you is researched by us. We are in the explaining stuff business, not in the advertisement business (well, ok, you can hire us to produce a video - but it won’t go up on our youtube channel).
If you have questions or comments please tell us, total transparency is super important for us. And if you want to help us get 100% independent from sponsors, you can support us directly at Patron: bit.ly/1NOxZ7p. Our ultimate goal is doing youtube and similar projects full time, for you guys and because it is so much fun. Thank you for reading this far! - Philipp
Great video
RESPECT FOR YOU GUYS INCREASED BY 1000000 XP
Lot of youtubers start to make advertising or product placement. Some of them say "carefull I'm going to do it in this vidéo" some other doesn't say anything and sneak it. We need you, so if you need it, I'm fine. Just be clear, transparent, and please never let sponsor control your content, even youtube. Do what you love, you inspire me, and thank you very very much for the awesome work. I'm helping often by adding subtitles.
I ❤️ your vids! They are so interesting, nice animations, teaching content and BIRDS!!! Keep up the good work. My favourite video is the immune system one!
banco is italian for table ...
The first sentence "The international banking system is an enigma.” that is it, that is all you need you need to know
True ROFL
that sentence made me chuckle lol
What is an enigma
@@blacklyfe5543 is enigma a word?
Yes it is. It means something that's hard to solve. Something super complex.
I'm deeply concerned about the current banking situation. The thought of a bank as large as SVB failing worries me greatly. A close friend who manages a rapidly expanding startup experienced significant setbacks due to a recent bank run. As a precaution, I've withdrawn over $840,000 from my bank. However, with FDIC coverage limited to $250,000, I'm aware that a potential collapse could have serious repercussions. Given these circumstances, I'm considering investing in the stock market. Any suggestions on how I should proceed?
You're not doing anything wrong, you just don't have the required skillset to profit off a down market, folks that are making profit in this market are pros and experts with in-depth knowledge and skillset.
Yeah, financial advisors could make a lot of difference, particularly in a market such as this. Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are a lot of wealth transfer in this downtime if you know where to look. I have been using an FA since 2020, and I return at least $30k ROI, and this does not include capital gain.
Would you mind telling me how to contact this specific coach using their service? You seem to have the solution, as opposed to the rest of us.
“Sonya lee Mitchell’’ is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I searched her up, and I have sent her an email. I hope she gets back to me soon. Thank you
The explanation of bank lending is wrong.. banks lend more far far more money than they have on deposit. It's called fractional reserve banking. Essentially when you take a loan out, most of the money you get is created out of thin air, and it's your promise to pay it back with interest that brings it into existence. This is of course gives banks huge power.
+Samuel Durkin (Artist Paintings) Shame they did not say that in the video.
that is a big and bad part of banking that has been left out of this video. fractional banking accelerates our busts and booms.
+Samuel Durkin (Artist Paintings) If I had to guess this wasn't mentioned because the idea was to make the concept as simple as possible.
+Joel Nichols but the main process of how money and credit is created is fractional banking. 97% of all money is created is from fractional banking. so it's quite a big thing to miss out when explaining how banks work.
+Mutton Man The reason why it tends to work is that this new money being lent into existence is going toward both supply investment to make new stuff and/or demand in getting financing a car so you can get to work and do other things you want to do with a car or bike or whatever item.
It helps expand the money supply while expanding both supply of stuff and helping demand as well, when both quantity of supplies increase and quantity of goods demanded increase, the overall economy grows, meaning more people have a chance to improve their standard of living.
That's the basic concept.
The downside to fractional banking is that it can increase risk to banks on default should their be a run on their bank and depositors flee, hence why FDIC was created after the 1929 crash, and also why regulations that put a firewall against investment highly speculative banking and deposit banking. Unfortunately in 2000, the republicans in congress signed by Democrat Clinton in the US repealed this firewall protection. And just 7 years later, we had a meltdown and runs on banks in the US. Also, it didnt' help that new risky financial instruments were never and still are not regulated like credit default swaps.
From early 1990's finance sector was only 5.5% of GDP, by 2006 it had grown to over 8% of GDP, financing to be efficient should be too expensive, so it rising in GDP means it cuts other sectors' shear of GDP in producing tangible goods and services.
You forgot an important detail. Banks don't have to collect the money of their customers they can lend money they don't even possess.
Correct. Modern Money Mechanics.
Agree, yet 1:30 of this video is still trying to convince people that banks are using only thier monies. NOPE! Banks have all monies in the world and even more xD
They can borrow as much as they want from the Federal Reserve, as long as they have some marginal percentage of assets in reserve. Money is just created at the push of a button.
@@khala1953 simple not completely true, since blindly pressing money with buttons leads to an inflation due to the decrease of the money's worthiness.
@@tomaszskomra1718 well, in fact, when every customer withdraws their money from all banks at the same time, those banks will in fact get bankrupt. They even won't be able to give everyone their money back
Once again the visualisations in this episode are astonishing! For every phrase said, there is a great picture shown and therefore even such a complex matter like banks is easily comprehensive. Thanks a lot and keep on the great work!
Great video! I really do have a question. For someone with less than $300,000 to invest, how would you recommend we enter the market? I am looking at studying some traders and copying their strategy rather than investing myself and losing money emotionally. What’s your take on this approach?
Due to the significant falls, I need advice on how to rebuild my portfolio and develop more successful tactics. Where can I find this coach?
You will get bots answering with names of random ‘financial advisors’. Talk to your bank or local credit union for financial advice on how to manage your money. Not CZcams comments.
My honest opinion is that if you're new to investing is best to get your feet wet in safer, long-term opportunities such as staking, real-state, dedicating a small portion of your portfolio for the stock market (Just to hedge your possibilities and having something that can grow exponentially long-term). Aside from that you could invest in the middle portion into index funds such as S&P500 and NASDAQ, which have pretty good returns long-term wise, often time beating inflation rates.
"What are you doing?"
"I'm listening a German guy talk about international bankers."
...
"NOT LIKE THAT!"
The lie is that he isn't german. His name is Steve
Stephen Lofton r/whooosh ?
Peter Smythe
....... subscribe to PewDiePie
Wut
@@chrono-glitchwaterlily8776 It was a Nazi joke
Nowdays Quantum physics seems more understanding than banking °~°
A lot of complicated mathematics came from accounting and banking since keeping track of numbers is very important for making a buck in those industries. In fact, Euler's constant (e) can be found through compound interest.
As you put larger and larger values for n in the equation: (1+1/n)^n, the value gets closer to Euler's constant. So the limit as n goes to infinity for that equation is actually e!
@@MrMineHeads. wut
You must have never tried to learn quantum physics
@@zoleroid7027 exactly
@@MrMineHeads. nice some clever Arabic people here
The problem we have is because Most people always taught that " you only need a good job to become rich. These billionaires are operating on a whole other playbook that many don't even know exists.
Money invested is far better than
money saved, when you invest it gives
you the opportunity to increase your
financial worth.
It is remarkable how much long term
advantage people like us have gotten by trying to be consistently not stupid,
instead of trying to be very intelligent.
The wisest thing that should be on
everyone mind currently should be to
invest in different streams of income
that doesn't depend on government
paycheck, especially with the current
economic crisis around the world. This is still a time to invest in Stocks, Forex and Digital currencies.
I also keep seeing lot's of people
testifying about how they make money investing in Stock, Forex and Crypto Trade(Bitcoin) and I wonder why I keep loosing. Can anyone help me out or at least advice me on what to do.
Even with the right technique and
assets some investors would still make more than others. As an investor, you should've known that by now that nothing beats experience and that's final. Personally I had to reach out to a stock expert for guidance which is how I was able to grow my account close to $35k, withdraw my profit right before the correction and now I'm buying again.
I'm really concerned about the current bank situation, especially with a major bank like SVB failing. A friend's startup was severely impacted by the bank run. I've withdrawn over $640k, as the FDIC only covers up to $150k. I want to invest in the stock market-any advice on how to proceed?
I've never felt secure keeping large sums in a bank, so I invest through my financial advisor. Banks are driven by greed and over-leveraging since 2020 contributed to SVB's collapse.
We were traveling in the same direction, my wife and I. I withdrew my money over the past two years and invested with her wealth manager. I won't be able to match her earnings over time, but at least I make more. Haha.
Would you mind telling me how to contact this specific coach using their service? You seem to have the solution, as opposed to the rest of us.
Monica Shawn Marti is the licensed advisor I use. Just research the name. You’d find necessary details to work with to set up an appointment
I looked up her name online and found her page. I emailed and made an appointment to talk with her. Thanks for the tip
I didnt understand shit but the animations are so cool
u dumb af then lmao
Jimmy Neutron niggas be like^
Same
Same 😄
lol nice Einstein profile pic ;)
It’s designed to be confusing so that normal people will leave em alone
And illiterate conspiracies continue to spread.
@@wojtekthebear4958 what conspiracys? Do you understand fractional reserve lending? Bank's create money out of thin air my friend,you should educate yourself before talking bollocks next time mate 😂👍
@@donskii-sx9hw They do that to control the economy from going to fast and from going to slow.
@@azap12 who told you that? They're creating fiat currency out of thin air at an extremely massive rate and that causes the money already in circulation to be worth less so when you say control the economy if you mean by keeping us all poor than YES haha and make a super fat profit for then selves at the same time
donskii 0151. Don’t bother yourself to educate stupid conformists it’s too late for them they have already been brainwashed
About the current bank situation, I'm really concerned. I am worried about a lot more if a bank the size of SVB may fail. I have a friend who manages a fast-growing startup and was severely impacted by the bank run. I have taken more than $840k out of my bank. Since the FDIC only provides coverage up to $250K, an implosion could have negative consequences. presently want to invest in the stock market. Does anyone have any ideas on how I might proceed?
We fail to realize that banks are commercial enterprises that are driven by greed as well. The over-leveraging of assets by banks starting in 2020 was one of the factors that led to SVB's collapse. I've never felt secure keeping a large sum of money in a bank. In other words, I invest through my financial advisor, reap the benefits, and then spend the money.
@@martingiavarini Would you mind telling me how to contact this specific coach using their service? You seem to have the solution, as opposed to the rest of us.
@@hermanramos7092 Catherine Morrison Evans, a well-known person in her field, is my advisor. I advise doing more study on her credentials. She is a great resource for anyone looking to understand the financial market because of her extensive experience.
@@martingiavarini Thanks for the advice. The search for your coach was simple. I investigated her well before using her services. Considering her résumé, she appears competent.
The government wants to take control of people, and slowly, you sheep will switch to bitcoin. Banks aren't going to crash anytime soon, big banks know what they're doing.
I stumbled across your video and instantly knew this was made for me. I'm going through the same thing with my business but just knowing that I'm not the only one who's experienced this just pushes me to go harder. Continue to put out informational content and sharing your story, THAT is what separates you from the rest. Much gratitude Monique and *Linux Tech Corps* was so helpful during the process of boosting my credit
The soundtrack is awesome. It has a recurring theme that changes based on the mood of the video
I just listened to the full track on Soundcloud, it's pretty awesome! And apparently all the music from their channel is on soundcloud. You can find the link in the video description :)
I always forget these videos have music, it just blends so well with the video.
They should have just let the banks go under. A company that doesn't conduct itself in an appropriate manner deserves to fail.
That would have been really really bad
If a bank goes under, all the money that innocent people have in it, goes down the drain as well. This is why the banks were bailed out, because if their weren't, millions upon millions of people would lose that entire lives. Riots, anarchy, and end of civilization (for a time) would ensue as a result.
epicpolyphony You can't just let their customers life savings disappear. That would be a bigger problem then what they caused. Before anyone says it I know putting money in the bank is an investment that carries risk but it still would be really bad.
***** Although this is true, what we have instead is injustice. They took huge risks for short term profits in part illegally, and it blew up in their faces... but they got bailed out, the "risk" wasn't really there in the first place. Nothing keeps them from gambling again. When you are too big to fail and too big to jail, you can't become poor and can't get into prison. How is that still a fair society? This is like having a royal ruler class again. Makes my blood boil.
Seamus Fullerton I think that you forget that money in the banks is insured up to $250,000, so if the bang fails you still have your money.
*I and my family are grateful, we will forever be indebt to you😇 I will continue to preach about your name to the whole world to know you have saved us from a very huge financial debt which just little investment thanks so much Mrs Ava Harry*
I have broken through 45k, 72k and got my eyes on 120k! Champagne stays popping,she is too awesome. Sometimes I wonder if she use magic power to trade
she is very popular among brokers and I must say She is an outstanding broker too I saw her once on Chris Hogan channel and contacted her on IG shortly after that, investing in forex has been very profitable to ever since then
Instagram
She's awesome, she has managed my investment so well and my weekly returns are mind blowing just made my 5th withdrawal last week
I made my first $85k investing in forex trading,As a beginner now I have time for my families and other things in life, thanks so much Mrs Ava you a life changer
“Banco” is Italian for “table”. However, “banco” means bench in Spanish and Portuguese.
Follower Of Duck
And also bank, not only bench
"Banco" is bank and bench in portuguese
@@GatoMendesdaSilva and Bank is bank and bench in german.
"Bangku" means chair/bench in Indonesian and Malaysian
@@MM-vs2et are those languages related to Hindi or how this language in India is called?
Bank robbery is an initiative of amateurs. True professionals establish a bank.
Ilk defa bu kanalda bir türk buldum
@@uppercity2525 5 yıldır burdayım bro aldjapfjapdksjdo. Türkler heryerde herzaman vardır, bunu unutma 😁
No true professionals trick people into registering there children with the goverment with a berth certificate and then turning around and putting them on the stock market as a bond and yes I said berth do your own research
@@goldentirent8456 what's berth i'm lazy
Berth is another way of saying birth
The trick is to get your money to do the working, I've read success stories of people that grew a profit of over $3million within 2years and that motivated me to get started as an investor, so I'd appreciate more tips and clues on how to make huge profit.
discipline, consistency and lack of instant gratification, that's how you get there.
You can reach out to an investment consultant, they're good at helping people invest
I agree, just get in touch with a financial consultant or professional to guide you and set you up with really profitable portfolios, I personally got in touch with a consultant and through her assistance, I’ve exponentially grown my portfolio to $380,000 within 4months, far from a million which is my goal but I’m definitely getting there.
@@PaxtonthePerfect I have a good mentor assisting me so I can totally relate
@@PaxtonthePerfect Please who is your financial consultant, how do i get access to him?
The amount of time we spend believing we can't is more than enough time to learn how you can. - my Brain
You're right
Stocks are good but crypto is better
Stock's are crashing, Bitcoin Investment right now will be at every wise individual list in a month you we be ecstatic with the decision you make today
2021 online stock is just difficult and unbelievable, I'll rather invest my money on crypto
People are ignorant of the profitability in bitcoin Investment and that had been their major issues limiting their Investment
A few years ago I had to go into a Bank of America to cash a customer's check. The teller wanted to sell me a bank account. I tried to decline politely, but the teller just would not give up. After a few civil "no"s, I couldn't resist saying, "Look, your bank just crashed the whole world's economy. I think it would reflect badly on me as a business person to have any kind of business relationship with you. Not to mention, you aren't the most stable institution at the moment."
Yeah, you sure showed that $10 per hour employee who's the boss. Bet you feel really good about yourself, don't you? Maybe next time you're at McDonald's you can scold the cashier who tries to get you to supersize your meal.
Burt1038 Well, that's why I tried to be polite in the beginning. But she just wouldn't take no for an answer. I was embarrassed about it afterward, but it's just so infuriating that, while the economic downturn cost me my start in life (instead of the $60,000 I made in 2007, I only made about $20,000 in 2009, and not much more in '08) these banks and their employees, who're responsible for the whole mess, are just going merrily along as if nothing was wrong.
+TR for life She said something like, "Bank of America is very stable." I didn't respond because I already felt embarrassed by my outburst, but I was thinking, "sure, stable with my taxes."
Josh Bobst
Hey, you don't have to convince me that B of A sucks. But they actually did hemorrhage a lot of employees in the process. So much so that they were offering my brother, who hadn't even graduated college yet, a branch manager position upon graduation. I gave him some brotherly advice on that LOL. Needless to say, he did not accept the position.
What job do you have...60k/20k? I make 120k+ (more usually because the majority of my money is in the stocks) a year.
I hate it when I'm trying to buy something with pac man and the store only excepts Lego heads.
+Daninja42 ikr !!!
+Daninja42 *accepts
+Adam Mehdi thanks
i have to deal with it every day
*dies*
You work for 40yrs to have $1M in your
retirement, meanwhile some people are putting just $10K in a meme coin from just few months ago and now they are multimillionaires.
I’m celebrating a $30k stock portfolio today. I started this journey with 6k. I have invested on time and also with the right terms now I have time for my family and the life ahead of me
Wow, really. I was able to make my $25k on investment
@@clydeorlan2615I’m looking for something I can venture into on a short term basis, I have $15k sitting in my savings
Assets that can make you rich
*FX
*Btcoin
*Stocks
*Gold
*Real estate
You’re right but a lot of people remain poor due to ignorance
Preach Bruh! So happy I came across your video! During the pandemic I wanted to rebuild my credit so bad and have a new life by the end of this year that would benefit me , my family and my business I opened during the pandemic! I paid someone over $1000 to rebuild my credit and they started the process but ghosted me! I started doing my own research and Linux Tech Corps popped up on CZcams ! I’m now building my own credit back up and I have 3 medical collection’s account to take care of and thanks to you , I know I can handle those! *Linux Tech Corps* were so useful and You’re such a blessing!
"The international banking system is an enigma" reminds me of Patrick Star saying "The innermaginations of my mind are an enigma"
lol
@@lifemocker85 shut up troll
@@macaroon_nuggets8008 youre troll if you want to deny people the truth
@@lifemocker85 I am just gonna ignore you
@@macaroon_nuggets8008 truth seems to hurt
it's brilliant how kurzgesagt comprehensively sums up everything about banking in just over 6 minutes
I love when I'm doing research and find a video that I wached 7 years ago and still learn something new that I forgot!
2008: Worst financial Crisis ever...
2020: Hold my beer
To be fair it's generally not a financial crisis.
2020 isnt a financial cricis at all.
@@wojtekthebear4958 Is the world financially better off in 2020 than compared to 2008 ?
@@SuSmallville Yes and no. The financial sector is better regulated than it was in 2008. Nowhere near perfect, but better. On the other hands, central banks and governments haven't fully recovered since the last economic downturn.
*hold my surgical mask.
Oh and it's GOING to be a financial crisis - too early to see effects yet.
How could you talk about the modern banking system without even mentioning fractional reserve? In 2008 Citibank had more than $60 lent out for every $1 in deposits. The issue wasn't just bad loans, it was tonnes of bad loans made with "virtual money"; money created out of thin air (though to be fair in our fiat currency system all money is made from thin air).
Fractional Reserve credit *does not exist* because banks do not lend out funds they *have* or "possess", not full reserves, nor a "fraction" of reserves. Reserve accounts are practically unrelated to lending and impose no limits whatsoever. Reserves are for overnight clearing of checks, *not* loans.
Loans *create* deposits which create more reserves.
Capitalism works by contracts.
Banks create loans by creating contracts. Contracts with numbers have some rough value, a price that may have variance in value due to expected risks plus the over all social and market environment.
Banks create loans by creating pairs of contracts, called Balance Sheet expansion. Creating pairs of contracts, one incoming (assets, received over time), the other outgoing (liabilities, now) (a bank account balance or check is a liability of the banking system owed to depositor or borrower) --- nothing is per se "illegal" about that -- and so long as Capitalism (myth and actual) allows persons and corporations to own property, including property such as contracts, with unlimited property rights, then nothing but sound central bank regulations (incl Dodd Frank, etc, much more could be done) vs "lassez faire" prevents banks from creating as much credit with as much risk as they choose to maximize profits ... with the theory that risks are totally eliminated by clever exotic contracts and securitization ... and with the implicit understanding that if the executives totally destroy the institutions with bad loans, while paying themselves record profits and bonuses in the short term, the US govt will rescue the institutions .. but not investigate and not prosecute the tricky financial fraudsters.
Warren Mosler published a set of reforms for Treasury, Fed, and Banks. Some of those, rather than regulate some of the more useless and predatory aspects of finance, simply ban those completely, while still permitting commercial banks to conduct routine commercial banking, and risk mgmt and allocation, as the public utility that they actually are.
All money is virtual.
Ikreisrond the question, is a contract virtual or real? a contract isn't physical. A car title isn't a car. A house title isn't a house. The paper isn't "virtual".
Money amounts to a contract and a ledger entry. You can spend ledger entries by ordering your entries sent to another party's ledger.
Money is INFORMATION.
Virtual information then. It's all in the mind, it's not real. It's made-up.
Ikreisrond so you are saying that everything intelligent that separates human beings from animals is "not real". Human invention and engineering is "not real". Human language is "not real". "Family" is "not real", just individual bodies with some common DNA. Love is "not real". Honor is "not real". The internet is "not real". Software is "not real". Music is "not real".
Legal contracts are "not real". Property ownership laws are "not real". OK, great.
Banks CREATE money when lending out money! This is a fact not many people know or understand. Banks only need a capital reserve, witch got increased after 2008 but is still insignificant in comparison to the money they lend out. Every time they lend out money to you or others they CREATE money "out of thin air".
Im glad that these guys dont shy away from some gritty details like how bankers are extrememly untrusted and for good reason.
You should mention fractional reserve banking. Good job drawing attention to credit co-operatives/unions.
Thank you for making this, the video our teacher requested us to watch was a bit confusing and this makes a lot more sense visually and explanatorily
same here! we watched this in our financial marketing class 😀
Please give this man credit for his visual explanation, even without talking ,a 3 year-old child can absorb the explanation he gave in this video. This channel should really get rewarded by CZcams, I’m impressed 👏🏾💯
For someone that hasn’t dug deep in economics this topic was more complicated than the black hole series 😫
Agreed, this doesn't really explain banking. Where do the banks get the money from? How is it that they can lend out more money than they actually have?
@@tubularG They don't own the money they lend out, if theres 2 people each with 10 euro in their account, and someones comes and asks for 20 euro loan the bank basically grabs the 20 euro from the people, lends it to the person in hopes of getting 25 euro back due to interests, then deposites the 20 euro back into the person bank and pay them interest, let's say 1 euro and they keep the 3 euro they just made for free by lending out the money they didn't own in the first place.
The person with who's money is grabbed doesn't see a chance because that'd be too apparent. That's how people can lose money if the bank goes bankrupt, cause they used all of your money and they have nothing to give back.
I'm glad they included alternatives to traditional banks. I am a member of a credit union and have been for years.
Why didn't you go into fractional reserve banking?
funzy101 that's an excellent point
+funzy101
It's not that hard to explain, you just reverse the explanation used in the video, rather than banks lending money which is first deposited, customers deposit money which is first borrowed.
Wandering Dog interesting! I will have to read that and get back to you! Thanks for the insight
positivemoney.org
+WakeAndBakeBeats Nothing about the role of government in the 2008 crisis either.
"Give a man a gun and he can rob a bank, but give a man a bank, and he can rob the world"
The Market have been suffering over the past month, with all the three indexes recording losses in recent weeks. My $400,000 portfolio is down by approximately 20%, any recommendations to scale up my returns before retirement will be highly appreciated.
Find stocks with market-beating yields and shares that at least keep pace with the market for a long term. For a successful long-term strategy I recommend you seek the guidance a broker or financial advisor.
Very true , I diversified my $400K portfolio across multiple market with the aid of an investment advisor, I have been able to generate over $900k in net profit across high dividend yield stocks, ETF and bonds in few months.
@@Deanswain19 Please can you leave the info of your investment advisor here? I’m in dire need for one.
The investment-advisor guiding me is Diana Luise Hines, she is popular and has quite a following, so it shouldn't be a hassle to find her, just search her
@@Deanswain19 Thank you for this tip. it was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.
You forgot to mention Fractional Reserve Banking & the banks creating credit as debt.
Forgot or deliberately left it out? 😋
@@donskii-sx9hw This says a lot about society
this video is just wrong. The banks do not take people’s savings and lend it out
Yep, maybe the channel doesn't know. I'm starting to wonder, just who in the world knows?
For example, somebody made a video about money generation in the UK and got out a document from the Bank of England (their central bank or analogous institution), and there was stuff in it that were contradictory to reality apparently.
Perhaps the money system is just so big, most people in it only know their part, and so most people aren't aware of the whole effects and nuances of it.
I mean he did. He mentioned that You deposit and bank lend it. So it's obvious that someone who got that money as loan will also deposit the money in bank and cycle will continue.
Every time I watch one of your vids my mind explodes.
Family Friendly Braden - I hope it's in a good way, that you're leaning stuff ^_^
If your mind explodes over this, please dont look up how money is created.
I wonder how much time and effort was put just in a 6 min video, the animation, sounds, script and overall quality is just astonising
You guys have such an awesome channel. My english is getting better with your videos and at the same time, I am learning about a wide range of topics. Thank you so so much. Keep it up :)
David Alvarez Yes,my English is gettin way better too😅. That Channel is really genius!
"Banco" in italian means workbench. It's the place where you trade products in a shop and this is the origin of bank.
"Panca" that means bench have no correlation with banks is just a bad translation.
Anyway, I love your videos. Keep doing this :)
According to the captions he did say banco.
@@mortem4342 yes, but he said it meant bench, altough it means workbench, like Francesco stated.
In Spanish, banco does mean bench.
I mean this did start 1000 years ago. Its possible the languange changed.
Somebody else can google the answer
@@jwhi419 il banco means bench
so does la pachina though
Hey there, I would like to thank everyone who is involved in making this information available consicely.
I began my investment journey at the age of 38, primarily through hard work and dedication. Now at the age of 40, I am thrilled to share that my passive income exceeded $100k in a single month for the first time. This success reinforces the importance of the advice mentioned earlier. It is not about achieving quick wealth, but rather ensuring long-term financial prosperity.
This seems like the worst period.Even the markets are very unpredictable.started investing recently when the market prices were a bit high,today i am more than 60% down
I thought about investing in the financial market, I heard that people make millions if you know the tricks of the trade, but I lack good knowledge and a strategy to outperform the market and generate good yields. I have $160,000 but it's hard to bite the bullet and do it.
Having an investment advisor is the best way to go. Based on a direct encounter with a CFP named Kate Elizabeth Amdall, I can say with certainty that their skills are excellent. She helped raise over $580,000 in 18 months from an initially stagnant portfolio of $150,000
interesting! can u share more details?
Cant reveal much info, she is the shrewd advisor responsible for my portfolio success, it's only right you look her up and confirm yourself.
0:38
Kurzgesagt: ok so this is a map of Italy
Sardinia: am I a joke to you?
not to mention banco is actually desk or the table where the trades were made, wp kurzgesagt
Ha, I just met someone from Sardinia so I get this reference. Just felt like putting that out there.
@@andrewjackson3486 that's because in Sardinia it is easy to hear "Sardinia no est Italia" (Sardinia is not Italy)
And corsica (yeah i know its french but it should belong to italy (due to language and culture similarity as well as geographical proximity))
@@Noname2004kurdish Corsica and Sardinia should be an indipendent or singular entity like the province of Roman Empire ❤
great video! (but "banco" in Italian means table)
Yes. Banco means bench in Portuguese. Maybe there’s were the word originated?... but it all came from Latin, that’s for sure.
Yep in spanish banco is bench too
@@adamsmith21stc no, banco means table and not bench. Don't rely on translate.
(Source: am italian)
@@adamsmith21stc "Banco" can mean table or desk depending on context and use, but for the latter we mostly use the word "Scrivania".
A word can have multiple meanings.
@@adamsmith21stc oh Adam, porco dio lo capisci?
thanks for posting this. if you dig deeper on fractional reserve banking it gets crazier!
When the video suddenly switches to Super-Mario mode... so cool!
Me: Im gonna rob a bank.
Italian: Sure, rob our bench.
Italian: *STONKS*
Don't forget bitcoin, but that probably deserves a video all its own since so many don't understand it. Bitcoin is beginning to appear in countries and regions that don't have access to local banks and credit unions and the technology behind bitcoin is being developed to included things like identifying land and property owners. There are some regions of the world where people are robbed of their land simply because they cannot produce the documents that prove they are the legal owners, this technology gives them a digital record that cannot be altered or forged...great videos
+manb4war Which part of the world doesn't have deeds but does have Bitcoin payments for land, exactly...?
I already know about bit coin... to bad they have nothing to do with my country here.... money crisis hire means a few hundred bit coin can make me a milionare
Bedsidetable2 I'm sorry I don't speak ignorant...can you translate?
+manb4war bitcoins aren't really relevant anymore unless you're a libertarian or someone wanting to by chronic og heroin off the deep web. The market is terribly unstable, their value is incredibly high but is also slowly dropping due to everyone getting on the hype train too late.
+manb4war *buy
Putting well earned money into the stock market can be over emphasize for first time investors unlike a bank where interest is sure thing. Well basically times are uncertain, the market is out of control and banks are gradually failing. I’m planning on a ballpark figure of $3m for retirement and I have about 550k loaded up for this , could they be any opportunities for a boomer like me?
As a business owner in both the service industry and eBay reseller of all product categories, I can tell you we’re in a deep recession and everyone is running out of money, sincerely your best opportunity is seeking a financial advisor unless you’re canny yourself.
Very true; people down-play the role of a financial advisor until burnt by their mistake. I remember after my layoff early 2020 amidst covid outbreak, I needed to stay afloat, hence researches for registered advisors and I did found someone of practical knowledge, and decades of experience. As of today my stagnant reserves $325k has yielded almost 7-figures after subsequent investments.
Wondering what’s stocks you have in your wheelhouse now that the market have gone berserk! Your invt-advisor must be a mastermind, do you mind sharing info please? I’m in dire need of portfolio assistance for extra income.
Renowned for his proficiency and expertise in the financial market, "COURTNEY HEATH WILLIAMS" my financial advisor, holds a broad understanding of portfolio diversification and is recognized as an authority in this domain. All I can say now is my life has changed since meeting Courtney Heath Williams. He's helped me become debt-free and save for retirement." | made over 80K during the crash in the financial market, which made it clear there's more to the market than we average joes know. Having an investment adviser is currently the best course of action, especially for those who are close to making losses..
@@christianaemilio1Thank you for this tip, it was easy to find your advisor. I conducted a thorough research on his credentials before messaging him. Base on his resume, he appears to possess a high level of proficiency and i am grateful for this opportunity! Thanks once again.
I had to watch this three times to fully understand! (it does make sense after a while)
Why didn't you mention the fraudulent creation of money and how money is equal to debt? czcams.com/video/KMtVx7lYVRo/video.html
It's probably the single most important thing to know about our current economic/monetary system.
***** Oh look, some tinfoil hat conspiracy theory nitwit.
Hjernespreng It's not a theory if it is proven, Modern Money Mechanics is out there for you to read at your own leisure. Ad hominem does not make a sound argument.
Sweejit I wasn't talking to you.
Hjernespreng I'm going to chime in on Sweejit's and TR for life's behalf and concur with their comments. Their statements are rational and factually based. Not based on ignorance and delusion.
The creation of money is explained in this video. The bank stores money from people which it lends to other people. That's a way banks can create money, as suddenly there is double as much money.
Inflation is also a good thing, without inflation people wouldn't consume, and without consummation there is no money circulation, which in the end means there is no progress.
The video you mentioned also doesn't address the fact that taxes are a redistribution of money between the rich and the poor. A lot of poor people are against taxes though, which isn't a good decision really.
I have learned more from this channel alone than I have from 12+ years of public school.
I believe the wisest decision that should be on every individual list is to invest in a different stream of income and don't depend on the government to bring you money. It's always better to work smart and not hard..
I have 2 chapter 13’s that are dismissed. The reason I have 2 is bcz I did not use an attorney. I was trying to stop an eviction, but when I went to try to add another month’s rent to the bankruptcy, but the guy filed another one. About a month later, I ended up losing my job. They are scheduled to fall off in January and March 2021. Since I’m looking to purchase a home soon but still there. I am currently enrolled in *850 Financial assessment* and I must say, I am loving it thus far. I’m doubling it up with your podcast videos and learning A LOT! Thank you. I’m ready to join the millionaire club!!!
Is no one going to talk about how it says ΔSS on the chalkboard at 0:16
What's that?
Oh nevermind
The replies on this comment... Hilarious 😂
Fezii I see only two replies by the same person before yours. Hm
@@arcadicus_ezevius yeah, when the guy is confused about the ∆SS
No, "Banco" is Italian for "Table". In Italian, "bench" is "panca".
+MythCraft00 Correct, the name bank derived from the tables of the jews that were giving loans in Venice. At least that's what 'The Ascent of Money' says.
+panzach Oh, I didn't know that. I commented just because I'm Italian and I noticed the error :D
"Banco" is Portuguese for bench.
+ThalesQwerty banco is Spanish for bank
As an Italian I confirm what you say ;) Though we often use "panchina" instead of "panca".
Money is not the goal. Money has no value. The value comes from the dreams money helps achieve.” - Robert Kiyosaki
The outro looks GREAT and the music sounds soooooooo good.
I was really hoping that you would explain the Fractional Reserve banking
Words on words
If everyone was debt free there would be no money in circulation by definition, so fucked
@@TheEvilWalrusLord its fucked up, a snowball systsm
It's false. Banks don't lend money, they create money.
j
Tries to make life simpler. Creates enigma instead.
This video was such ahead of its time
Thank you, this is so helpful for an English learner like me.
Banks lend out multiples of their deposits. Typically 9 to 1 or in Australia they only have a capital requirement
Actually reserve requirements were eliminated under COVID-19
I love 💗 the cartoons in this video. They help me gather information quicker.
I liked it very much, I will recommend it to friends and acquaintances.
I’ve learned more from this show than I’ve ever learned in school lmao
Soooo true
Yes I've learned alot I've actually came back to this channel
The true essence of the banking industry/ monetary system is to keep everyone in debt. You control the debt. You control everything
sigh....no, just stop.
You also need to control collections, or you don't control anything.
Ignorance is so pervasive on the internet because everyone with fingers can voice their opinion. Some pawn it off as facts. This is why the world is in trouble.
Play the game. Stay out of debt.
@@gamingdude2811 so people shouldn't call it stupid when its stupid?
Thumbnail:
Burning Money, Banking Explained
Very interesting and details, appreciate it
Surprising how many people are Italian by looking at how many people are saying "it's desk/table, not bench!"
P.s. Another italian here :D
Yeah, good job on explaining fractional reserve banking. Love the integrity you shown by adding it to the video...
Lovely video! Thank you so much.
I’m a banking and finance student and while I’m learning about the industry I feel very unethical about the industry I chose to study and work in. It’s making me have second thoughts now
Thank you for teaching me more about banking in 6 minutes than 12 years of school couldn't lol
By the looks of it school wasn't teaching you English, either.
La Sra. Kate es legítima y su nuevo método funciona como magia. Sigo ganando cada semana con su nueva estrategia gracias a Dios todopoderoso.
El comercio es muy rentable con la ayuda de un corredor experimentado que administra su cuenta comercial de manera excelente
Invertir en activos es el código de trucos para tener una vida financiera exitosa...
Para evitar pérdidas durante el comercio, debe obtener una comprensión y un conocimiento completos del comercio y la tenencia.
@@alicemollet7181 Tienes razón... la mayor parte del tiempo tener conocimiento o percepción sobre una actividad en particular también puede ser un ejercicio placentero.
Eso es cierto, la mayoría de las personas hoy en día han tenido muchas fallas en el sector comercial debido a una mala plataforma y una mala orientación.
Very interesting appreciate everything you do
Thanks for the useful info!
Sometimes I wonder why this kind of knowledge isn't included in public education...
Godspeed and God bless!
Well Austrian economical school (the original school of economy) is not included in university syllabus - only Keynesianism and Monetarism is being taught - it's modern dogma. And I'm not even mentioning commodity money (e.g. Bitcoin). The estabilishment now fights against it SO HARD while crashing again and again, printing more and more... blaming everyone and everything around except their own dogma of 2% inflation (meaning that half of your savings should go away in 10 years and everyone should be a full time investor in order to use money efficiently...)
0.55 mmm not true! "Banco" in italian means a sort of table. Back in the days people used to exchange money in this little tables apparently, which makes more sense!
I'm italian (and from pisa too :D)
0:55
Yes, more precisely: banco = counter (a flat, elevated surface).
Thank you for putting together a great video explaining how the banking system works, with interesting graphics and narration that captures the attention of my daughter with ADHD. I have tried, but my patience ran out.
Any chance you have one on interest and/or TFSAs?
Great vid, thanks.
The duck was the best thing which I enjoyed😂😂😂
except it is not even close to how the banks are really getting funds for lending (fractional reserve banking, means they create it at the stroke of the keyboard), and the causes of housing crisis, were artificially suppressed interest rates (thanks to the FED), substandard lending (thanks to semi-government Fannie & Freddie), and government's requirement to lend a mortgage to anyone who can fog a mirror.
Just because you can't understand it doesn't mean it is bullshit. Don't get me wrong, western economics in general is a house of cards, but not because banks are "creating money with a single keystroke."
yeah, and maybe it is you who doesn't understand, neither how banks are creating money each time they create loans, nor what I said above
michbushi Fractional reserve banking means using deposits to finance loans. It expands the nominal money supply without needing to increase real money. But it is not "creating money at a keystroke"
michbushi 90% (9/10) or some other fraction of money is lent, while some amount (1/10 usually) is kept as a "reserve." The determination of how much is kept and how much is lent is made by calculating things like probability of default, amount of money that might be withdrawn on / defaulted at any one time, etc. Anyway, after the 2008 crisis, the Fed now requires banks to keep much large reserves in the event of large defaults and loss of liquidity.
+David n lol, no, and yes, you have no clue about how leveraged banks were in the wake of 2008 crisis, or how they are now.
10% reserve, good grief... Maybe in the fifties of 20st century, lol!
Two things: No matter what a video on banking sponsored by a bank is shady as hell! Secondly, at 1:27 "A small amount of interest" This actually happens to me, the bank will put $0.02 into my account at the start of the month worth of interest, but in the very next line of the statement they have taken $19.95 in account fees!
Where are you financially now after 8 years
Watching this video at midnight during an existential crisis in desperation to change my life by understanding money and banking.
Great video, I enjoyed filming my video about credit union vs banks!
No mention of fractional reserve system, and bringing up the 2008 crisis, explaining as a result of "gambling", withou questioning "hey, why suddenly so many bad house loans were given?" --> government intervention via Freddie Mac and Fannie Mae. Was expecting more! :-(
We don't use the fractional reserve system any more, and reserve requirements only apply to checking accounts for the most part. The main practical limits are capital requirements. While reserve and capital requirements might help in a crisis when liquidity is needed, it's not going to do much about banks making bad loans and doing things that lead up to a crash.
Who is "we"? en.wikipedia.org/wiki/Reserve_requirement#United_States What country do you speak of?
Dimitri, what portion of subprime mortgages was held by Freddie Mac and Fannie Mae in 2008? I believe it was was well under half, more like 30%. So you give a pass on the other 70% because it doesn't fit the agenda you are pushing. Yes, it was gambling, they all were. BofA was leveraged out to something like 50:1. I know the right likes to claim that a law requiring non-discrimination in loans is at fault, but that law didn't require giving out bad loans, just they not discriminate on the basis of race.
I don't know the ratio, but I'm surprised if the 30% ratio is accurate, you talk about it as peanuts, this is a huge manipulation of the market. I assume you remember the wrong number, but regardless. Put on top the mandates around discrimination, which very much reduce the standards for loan-giving. Reduced downside, cheap money, more incentives to take risk, what would be the result? Oh, I guess we can always blame the profit incentive ("greed") of the private players, even if that was forever there. Maybe their "super greed" genes were mysteriously activated, who knows, some cosmic radiation excited them.
It's also worth mentioning that, acting as the lender of last resort, the Federal Reserve allows credit expansion far beyond what a natural market would ever allow. In a competitive system, banks have to use this unlimited leverage to find investments, and that always leads to poor investments, because there's only so much demand out there for the final produce of those investments. If the Fed didn't exist, credit expansion like this would be impossible and bubbles would also be impossible.
So now you want to know how banking work after the SVB.
Hi! I think U maybe the ONLy person I have heard give the precaution of “ONLY do this if it’s for Hard Inquiries that are not for any active credit lines”. That’s so awesome & amazing; I know tons of folks will appreciate this if they see Ur clip 1st before the others who instruct on this specific subject but doesn’t talk about the precaution & risks; how it applies... to later have their accts closed. No bueno! Kuddos for Ur knowledge & the sauce; for Ur transparency!!! I recommend ANDYHACKSCREDITFIX🎡ORG for those with bad credit after recommending this clip to learn some knowledge about credit....