Thanks for explaining something that nobody else seems to know!! I've been schooling my husband ! It's great to be the smartest person in the room if only for a minute!
im a really big fan of your videos. they are clear, concise and straight to the point without any detours that normally confuse the audience more than help. thumbs up. thanks.
Ever since the financial meltdown, the term derivatives has been in the news and a topic for debates around the world. Yet, derivatives are financial investments that may only be fully understood my those who regularly deal with the financial markets. This video does a great job in explaining a topic that can become rather complex.
Knock it off with the fake website referral; if there is real money to be made out there I truly doubt you and especially you,wouldn't let anyone know!!!!!
6:24 "But then so is my lawn mower". I just discovered your channel today and keep jumping from video to video because you make investment banking so fascinating.
I only watch this as part of my binge viewing. I have no interest in finance. But what strikes me is how people can make money from owning nothing 😮 But I do have a question for you. Where do you get your shirts from?
On a lighter note, my daughter suggests you to use a duster :) instead of paper, she guessed On a serious note, very informative for me as I try to endeavour in commodity trading. I have been watching your videos.
Mr. Tim Bennett thank-you for the simplistic explanation. However it would be much more easier for many if you can ad English subtitles to your vdo, so that, it can be read and revised (for a beginner) when the vdo is paused rather than rewinding the vdo multiple times to hear what you are saying. Also your accent is way different from the Asian accent, although 90- 95% can be easily understood, a few words here and there are difficult to grasp when you are talking in low pitch.
Love the show, but answering only questions from the top 10% of income earners, week in and week out, can be a bit over kill guys. "I have a net worth of a millions dollars, but confused should we pay-off our only debt of100k in students loans or buy a boat for the kids for the summer". Or "my wifes a lawyer, i am genius, should we use Fidelity or Vanguard. We are so confused". I am exaggerating, but you get my point.
In London there r prostitute houses in soho that don't move. Prostitution is illegal in England. I'd say it beyond setting an example to the word these lot r pedigree. Shameful. Boycott uk today remember oxfam scandal? Double standards? Boycott uk
I checked this online video since I got extremely worried about the economy and had not a clue what to do. Moolah does not necessarily mean anything nowadays. Therefore I made a decision to do some exploration and discovered Goldiverse. I am just so fortuitous, I have the ability to change my personal savings from cash to various currencies, to any precious metal any moment I would like. The governing administration can go and take a jump for all I care. Just Google and yahoo it Goldiverse.
yeah, and what's your rant got to do with this video? It is precisely because because were uneducated about financial products that they contributed to the problem, but of course the main reason was the Fed policy which caused the housing bubble.
I'm confused, I thought derivatives were like packages of investments, like a bundle deal sort thing, and that they were generally assets that were sold. That they were a contributing factor in the collapse in 2008, as investors were being sold AAA and AA investments on the surface but in actuality they were being sold investment bundles in which 50+% of each bundle were AAA or AA with the remainder being dodgy investments, and when these investments inevitably fell through, investors who were in possession of these derivatives lost a lot of money. Also, I thought that call/put option terminology was limited to binary options such as forex trading and that investors generally actually bought derivatives and didn't solely bet on their rise and fall in value.
David Burke You're thinking of CDOs (collateralized debt obligations). Everything you said was pretty much right, they were bundles of securities usually backed by mortgages. There were the safe investments with good ratings as you said but also as 2008 showed a dangerous level of subprime mortgages.
My question was answered in the first 2 minutes....great video! That explain why trading derivatives is so risky....a trader who is not interested in buying the sports car can swoop in and buy the spot in line hoping to sell it to someone else for a profit.
Good lord, as someone who doesn't have a great knowlwedge of fiancnial markets, was getting a headache trying to figure out the definitions of all these things from google. Enter this video - sets it out in the clearest possible way. Thank you
I'm not impressed. He didn't really explain things very clearly since in his explanations themselves he used a lot vague terminology or jargon that he didn't bother to explain and he only gave a couple examples. Every concept he explained should have been illustrated with an example.
excuse me....how is that something else a car.......i thoght the dirivative was based on your friends space in line that is related to the car. the actual car which will ultimately be a contract between the chap who bought the space from your friend and the dealer. please don't complicate this!!!!!
excuse me....how is that something else a car.......i thoght the dirivative was based on your friends space in line that is related to the car. the actual car which will ultimately be a contract between the chap who bought the space from your friend and the dealer. please don't complicate this!!!!!
Read griftopia! Still confusing as fuck tho lol. Finance is like physics in a way where u gotta wrap your mind around concepts. Still trying to learn xD
+euan campbell In my experience, securitization is when an illiquid asset is standardized so that it can be traded like any other security. Mortgage-backed securities; if you mean how one actually does this then sho...im still learning that as well lol.
Thanks for your concise articulation of something that did appear almost impossible to understand - making ground in grasping these financial concepts. Cheers.
dear tim these things wont be able to hedge well, they are not well plannable,rather a precalculated risk, hedging has to be damn secure options yes,but futures?
+Leo Guevard Do not give up hope. It is just jargon that we are not used to and once you understand it. You have it for life. Do not give up and be patient when learning. Practice makes perfect. Once you get it. You will never be at the mercy of others and will be able to control your own finances. Imagine never having to worry about money ever again. . By the way, did you know that if you were to take a course in Financial Engineering you would be out 15000$ just to take this type of course. So, really we are lucky to have this type of discussion as your BANKER would never discuss this with you. All the BEST.
+Larry Porter We are lucky to have people doing such postings as we all know that your banker or anyone with an Investment Bank will never take the time to discuss such products. Remember, always be curious and know what your options are. All the best. Remember, if you went to University and took this course you would 4000 just for a 3-month course. Here, you get it for nothing without bias or salesmanship. We are bleassed. All the BEST.
