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Why most of our money isn't real 

Johnny Harris
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Our financial system is pretty wild.
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About:
Johnny Harris is an Emmy-winning independent journalist and contributor to the New York Times. Based in Washington, DC, Harris reports on interesting trends and stories domestically and around the globe, publishing to his audience of over 3.5 million on RU-vid. Harris produced and hosted the twice Emmy-nominated series Borders for Vox Media. His visual style blends motion graphics with cinematic videography to create content that explains complex issues in relatable ways.
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16 мар 2023

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Комментарии : 6 тыс.   
@ColdFusion
@ColdFusion Год назад
That "The Big Short" outro though in the end 👌- great stuff, Johnny.
@captainhawk1697
@captainhawk1697 Год назад
YESS I laughed out at the Irony🤣
@tiffany.Elizabeth.
@tiffany.Elizabeth. Год назад
It was perfect
@xtrachrisb488
@xtrachrisb488 Год назад
They won't blame themselves, that's for sure
@NakedAvanger
@NakedAvanger Год назад
oh no its this guy....
@gravitydefeater
@gravitydefeater Год назад
love your channel btw
@CleoAbram
@CleoAbram Год назад
I am FLOORED by how fast you all made this video happen and how good it is. It's next level. Incredible work that shows an incredible team 💪
@danzwku
@danzwku Год назад
You're awesome too ya know :D
@mihinsumaria
@mihinsumaria Год назад
What is this, a crossover episode?
@saylolcool
@saylolcool Год назад
Your videos are just as good Cleo!
@gideon4942
@gideon4942 Год назад
I hope he's not overworking his team
@dronedreams777
@dronedreams777 Год назад
Its for them to make money back. So its that thing also. And there is a lot of fluff to this VDO. When too many people are talking about something, the action has already passed.
@ardeand
@ardeand Год назад
feel bad for the lowest paid workers that may be affected, but not CEO's. A lot of them have created this abusive corporate pay structure where they are paid 300 to 400 percent the salary of entry level workers. Most add very little value. They posture and perform with speeches, meetings, and excessive travel to provide the appearance of working hard. It's a con.
@andreasleonard0
@andreasleonard0 Год назад
Very big con and that is why i have always maintained that people should never have their money in the bank! Get a financial advisor and even make so much more while saving!
@Isaacmeide
@Isaacmeide Год назад
@@andreasleonard0 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.
@kevsmills
@kevsmills Год назад
My husband and I were following this same trajectory. Last two years, I pulled out my money and invested with her wealth manager. Not catching up with her profits over the years, but at least I earn more
@vivianecardoso0
@vivianecardoso0 Год назад
@@kevsmills we’re only just an information away from amassing wealth, I know a lot of folks that made fortunes from the Dotcom crash as well as the 08’ crash and I’ve been looking into similar opportunities in this present market, could this coach that guides yo help?
@kevsmills
@kevsmills Год назад
@@vivianecardoso0 It's run by ISABEL LINDA DUERI, who I learned about and got in touch with thanks to a CNBC interview. Since then, it has served as the point of entry and departure for the games we have emphasized. A search on the internet can be done if tracking is necessary
@axelf.w.1912
@axelf.w.1912 11 месяцев назад
One thing to consider here in comparison to 2008: this time the financial products that led to the SVB failure were "safe" government bonds, then they were (overly) complicated derivatives that lost their complete value due to wrong risk categorizations. So this time, the bank failed because of panic in combination with liquidity problems due to rising interest rates. In 2008 it was rather a system-wide failure fueled by greed. It does not seem to be systemic this time. Thank you for explaining the fractional reserve in detail, that was quite interesting
@johnmoore1495
@johnmoore1495 3 месяца назад
It still shows a weakness in the system that a company can fail with safe investments. Allowing banks to only have to keep 10% is a massive vulnerability, especially in a bank where 90% of clients have more than the insured amount. The moment there’s a hint of panic people will pull money, doesn’t take much to hit that 10% reserve. One bank shouldn’t have the potential to trigger potentially hundreds of companies to fail (because their savings are gone overnight) without government help.
@luqcrusher
@luqcrusher Год назад
Someone on Twitter said it best: “If taxpayer money bails out a bank, the bank should become publicly owned. You can’t privatize the profits, but socialize the losses.”
@Bombstark
@Bombstark Год назад
Yes!
@benjaminruiz7850
@benjaminruiz7850 Год назад
Amen to that!
@randyriverolarevalo2263
@randyriverolarevalo2263 Год назад
then if you are poor, and the government pays you for that, you can´t get money for work anymore?
@nikolaievans2432
@nikolaievans2432 Год назад
The point of some people depositing stuff in the bank is too invest and make a little extra money. If you give that deposit money to a person that doesn’t want to work to get a paycheck then you just loose that money
@Tethloach1
@Tethloach1 Год назад
@@nikolaievans2432 You want people to starve to death?
@TrueMobster
@TrueMobster Год назад
Always learning something new with your videos 🙌🏼
@joshfunder6247
@joshfunder6247 Год назад
This guy made a video for a 4 year old. There is no information included that you shouldn’t already know😂 this is why we have a shit system. They rely on people like you to blindly trust…
@antonjust
@antonjust Год назад
Say something about Silicon Valley edit : thank you for one like
@joshfunder6247
@joshfunder6247 Год назад
Also his opinion that “we have nothing to worry about” is about the dumbest shit I’ve ever heard.
@barnabuskorrum4004
@barnabuskorrum4004 Год назад
Did it teach you to join communism??? These collapses do NOT HAVE to happen
@yvonneplant9434
@yvonneplant9434 Год назад
But everyone should know what banks do. It's nothing new.
@ExxonMobilCompany
@ExxonMobilCompany Год назад
After a horrendous 2022, shell-stunned financial backers have misfortunes to recover and a lot to consider, as an expansion report and a pile of different information did close to nothing to change assumptions that the Central bank would probably keep climbing interest rates regardless of whether the economy dials back, And that implies more red ink for portfolios for the principal quarter of year 2023. How might I benefit from the ongoing unstable market, I'm currently at a junction choosing if to exchange my $250k security/stock portfolio.
@charlotteflair1043
@charlotteflair1043 Год назад
Centre around two key targets. In the first place, remain safeguarded by realising when to offer stocks to cut misfortunes and catch benefits. Second, get ready to benefit when the market turns around. I suggest you look for the direction a representative or monetary consultant.
@marcelrobert9569
@marcelrobert9569 Год назад
With the assistance of an investment advisor, I was able to diversify my $401k portfolio across multiple markets, earning over $980k in net profit from high dividend yielding stocks, ETFs, and bonds in just a few short months.
@marcelrobert9569
@marcelrobert9569 Год назад
@@markgeorge8206 She is Julie Anne Hoover my consultant. Since then, she has devoted section and leave attention to safeguards that I have been keeping an eye out for. You can locate information about the chief online, on the off chance that you're interested. I made no regrets about substantially adhering to their exchange strategy.
@jayc222
@jayc222 11 месяцев назад
This video was a HUGE improvement from the Inflation one. The one correction I have is that SVB and the other banks that failed were not actually bailed out. They were left to fail, but the depositors were bailed out in the sense that they got all their uninsured money back.
@TimeBucks
@TimeBucks Год назад
Appreciate the quality of your content
@zeenatzaidi5387
@zeenatzaidi5387 Год назад
Good
@chathuraprasanga4900
@chathuraprasanga4900 Год назад
Good
@nishatanwani6460
@nishatanwani6460 Год назад
That's indeed very true...the bank is liable to pay back..
@kajaldey6891
@kajaldey6891 Год назад
Nice
@TheWunder
@TheWunder Год назад
I love him more
@ghosted0352
@ghosted0352 Год назад
I like how these people who tell us "don't make bad decisions with your money, or you will suffer the consequences ." are the same people WE have to bail out when THEY make the bad decisions. Glad we all get to play the same game. SMH
@dachicagoan8185
@dachicagoan8185 Год назад
They also tell us to have a 6 month emergency fund while they empty all our bank accounts
@boxie13
@boxie13 Год назад
Not just Bad decisions. Negligent decisions with Our money.
@Seth-mu3wo
@Seth-mu3wo Год назад
They also get a huge bonus when they make poor decisions.
@mike496
@mike496 Год назад
in this case not really.. how is buying state bonds when there's a pandemic and war in europe going on a bad decision..? This is so easy for you to say with hindsight. 🤷‍♂️ people working at banks are doing their job like everyone else..
@boxie13
@boxie13 Год назад
@@mike496 they are just doing their jobs giving themselves a bunch of bonuses before they take the golden parachute? It’s not about the bonds.
@marie_s127
@marie_s127 11 месяцев назад
This was pretty well done tbh. I think it would’ve been more complete if it was mentioned that a few years back banks lobbied to have weaker regulation for stress testing (testing to see if they could handle not easy economic situations, like high inflation) and it let them to be not as careful as they should’ve been
@brianlang8994
@brianlang8994 6 месяцев назад
SVB and 1st republic actually had reserves that exceeded those potential regulations so that would not have factored in. The reason for lobbying for the weaker regulations was to give small and mid size banks a little more flexibility to compete with bigger banks. That would help them grow and provide competition with larger banks. Several politicians tried to float this as the cause for the disaster but were quickly corrected and that is why it did not gain any traction. A combination of the unintended consequences of the inflation reduction law, poor bank monitoring by the san francisco fed, a very poorly chosen board of directors and poor executive management is what led to it.
@xoxwildcardxox3309
@xoxwildcardxox3309 Год назад
Johnny another banger. Keep up all the good work. You are far and away my favorite journalist. Until I can afford to pay for your subscription I will be liking and sharing everything. Thank you so much for everything you and your team do
@AlbertoNeurohr
@AlbertoNeurohr Год назад
Hey Johnny, one key detail you left out: The FDIC sold all the assets of SVB to pay the account holders, not the shareholders (who were left out to dry). So this is a MASSIVE victory for everyone except the greedy SVB owners. This *is* how the system should work, and we should celebrate that we found a way to punish greed while ensuring people's money is safe.
@zj7396
@zj7396 Год назад
not just shareholders were left out, the debt holders were also left for loss
@monhi64
@monhi64 Год назад
Fuck a shareholder, that’s their investment they gotta live with the risks. That seems to be the crux of of why people are so torn on this situation though like everyone can agree in the short term this is the only move that prevents panic because we’re all dumb. I don’t think anyone has the answer yet to whether long term this sets a bad precedent. Frankly I think all of these RU-vid videos about the crisis are exacerbating things. Like at the end of the day these RU-vidrs are risking more unrest more panic for the short term attention/profit, they might calm fears too who knows. It’s a slippery ass slope and we’re all a bit guilty here
@bruxi78230
@bruxi78230 Год назад
Just so that people know the whole picture, this bank was considered well run and innovative. In October of 2021 their stock got up to $750. In December of 2022 the stock fell all the way down to $198. Clearly a massive move down and a company in major distress. It was possible knowing how banks work and the fact that the Fed was gonna have to raise rates, you could have bet against this bank using options and made a absolutely huge return. Trump helped to cause this disaster by doing away with regulations on regional banks like Silicon Valley. This bank was able to keep its investment portfolio in riskier than necessary bonds and the Federal government had no way of knowing about it.
@cretaceoussteve3527
@cretaceoussteve3527 Год назад
Wait really? Can you point me to the article? Because that would be extremely significant! That would be almost unheard of in the past half century, I think...
@cretaceoussteve3527
@cretaceoussteve3527 Год назад
@@monhi64 Good point. We need less incentive to create buzz, overall. On the wonkier side, In general I say fuck a shareholder too, but for the whole system to work at all, you need to give everybody some kind of insurance, but tier it much more in favor of people who were not intending to gamble but were just looking for a place to put their money. But yeah we sometimes forget that money is entirely imaginary, just a symbol of some sort of value we already brought or could bring into the world. The stock market is just a flying ball of imaginary money, everybody tossing some in and pulling some out. But is the stock market totally unnecessary? Well, if you weren't able to trade stocks in companies after investing in their IPO, then your gain or loss would be permanently tied to the success of that company, and people would have a lot less incentive to invest. So you have less investment and therefore, in theory, less innovation across the economy. I think the sweet spot is just treating people fairly according to their stake in things - if you work for a company or have a reasonable amount of money in a bank, then you should have a vote in who is on the board who are responsible for identifying various courses of action or investment, and then you should have a vote about which of those courses to take. There's no reason why large shareholders should be the unquestioned dictators of the private sector (which is guaranteed to penetrate the public sector - siphoning money off a tank filled with the collective wealth of huge numbers of poorer people is a fantastic way to stay rich, after all). If we're going to have a system based on private ownership, then it should be fair - what a brilliant concept! But that's the actual root of many of our problems today.
@ngalili85
@ngalili85 Год назад
There's the example of how Iceland's government dealt with their bank collapse in 2008. As far as I know, they chose to save the clients' money, but not the bank itself, and punished the managers and reckles investors and not the majority of the people. They also adjusted more policies and achieved unexpected economical growth after the whole country has basically bankrupted in the crisis
@assaqwwq
@assaqwwq Год назад
This is a joke right? Yall looking for solutions without addressing the actual problem of banks lying about how much money they have. Legalised greed then punishing the greedy is like being upset at people for getting too fat after you opened an all you can eat burger and donut buffet for free. If I lie about having a million dollars I go to jail, if the bank does it, it's a sign of a fictional economy. Yall can suck on my credit!
@minxili3317
@minxili3317 Год назад
This was the opposite in America
@donakidder3424
@donakidder3424 Год назад
They also gave jail time to those bankers that were guilty of misappropriation.
@andreschavez9671
@andreschavez9671 Год назад
Meanwhile the ones in the states get a slap on the hand and senior management gets new jobs at new banks
@powresitta
@powresitta Год назад
Dont forget ragulation
@najdelaggoun1639
@najdelaggoun1639 Год назад
Thanks a lot for gathering all of the information and giving it a historical informative background.
@AgustinCabra
@AgustinCabra 11 месяцев назад
Thank you so much for your high quality content, is fun, engaging genuine and easy to chew. Keep up the hard work!
@1crazypj
@1crazypj Год назад
It should be illegal for bankers to give themselves bonuses when bank is failing. I felt exactley the same in 2008 when bankers were giving themselves multi million dollar bonuses directly from government bailouts. It's just stealing
@kornkernel2232
@kornkernel2232 Год назад
Yeah, like its like rewarding them for their mistakes. Its like a parent let his kid punch another kid, and gave candy to his kid for doing so and not get any consequences. This is really irresponisble and corrupt that banekrs can simply not just get away of it, but actually gain some while tje rest suffer.
@rafaeltorre1643
@rafaeltorre1643 Год назад
Be careful what you ask for. Every law has an unintended consequence.
@1crazypj
@1crazypj Год назад
@@rafaeltorre1643 Undoubtedly, but, if these people had any morals above making more money for themselves it wouldn't be an issue.
@newagain9964
@newagain9964 Год назад
That still doesn’t solve the problem. And Doesn’t solve any problem. Is thats an impotent attempt at class warfare.
@RickStormT
@RickStormT Год назад
Didn't Iceland let banks fail, and actually sought to prosecute the bankers? Would've been nice to hear about that approach
@G0N0X
@G0N0X Год назад
In my opinion even if someone saves the bank the bankers still needs to take responsibility.... I mean if there are no repercussions, what's to stop them from doing the same "mistakes" over and over again
@user-zx9ys8xg2x
@user-zx9ys8xg2x Год назад
same with politicians
@motog-rocks6544
@motog-rocks6544 Год назад
SVB has failed. Under what law can you prosecute the bankers? They invested in Treasury bonds in 2020 and 2021, if you knew better then you would be rich enough to not be commenting on YT videos.
@ozzymar2869
@ozzymar2869 Год назад
But what would SVB need to be prosecuted for? If they met their reserve amount before the run, it was bad decision making but not illegal
@basstbass804
@basstbass804 Год назад
@@motog-rocks6544 you're missing out that our economie is based on division of labour. They're getting paid to know better. And they onmly should get bonusses if they know better than other experts in the field, which is the sense of a bonus. I wouldn't let an investment banker set up an respirator at an ICU, which is my job and what I'm getting paid for. And if I fail, I would have to face the consequences. So why managers don't have to?
@rakeshonguitar
@rakeshonguitar Год назад
@Johnny Hariss, I recently started watching your videos and God I am so glad I did. Your contents and information you gather to make a 30 mins video with exceptional editing is phenomenal. The information we get are way better than anybody else. keep posting more.. God bless you.
@SidharthGat
@SidharthGat Год назад
Most lucid explanation of what's happening (the core of the problem: the general banking system). No video from any other channel comes close to this... ❤
@XenoPassionate
@XenoPassionate Год назад
I've had economics classes in college and I swear you explain many concepts way better than my professors did
@afilaka123
@afilaka123 Год назад
You are absolutely right👍
@bamboosho0t
@bamboosho0t Год назад
Most college professors don’t teach you how to learn, they just teach you a portion of *what* THEY learned.
@dominic2123
@dominic2123 Год назад
Professors are generally hired due to their knowledge and pedigree, not how well they teach
@molomomo3743
@molomomo3743 Год назад
I am in my second year in college, from all professors we had, only one knows how to actually teach and simplifies things. Professors in general don't know how to teach.
@audreystarr6166
@audreystarr6166 Год назад
I think if bailouts have to happen, investigations should automatically be launched by the IRS regarding bonuses and mishandling...and ownership should be seized until the dust settles. Thus ensuring the customers still aren't penalized but the consequences be put on those that earned them.
@Whiterun_Gaurd
@Whiterun_Gaurd Год назад
Yeah not gonna happen
@y4ip2288
@y4ip2288 Год назад
Another trump supporter caught 😌
@gamaltk
@gamaltk Год назад
My thoughts exactly
@tomlxyz
@tomlxyz Год назад
Normally I'd agree with that customers shouldn't be penalized but SVB wasn't a "traditional" bank and a lot of the money put there was venture capital, who should have known better and had amounts that aren't normally insured with FDIC. If these types of customers get bailed out then it's a free for all for investors to put money into banks that provide unreasonably high intrest and get baile out sooner or later when it becomes unsustainable. TLDR: we shouldn't bail out customers who do risky things
@FirstLast-vr7es
@FirstLast-vr7es Год назад
You're thinking is a bit too rational. Would you mind giving us your address so that we can have some people come and uh.. "talk" to you? Just to set the record straight is all. You understand.
@hintonoriginal
@hintonoriginal Год назад
Johnny, your video production and explanations are top-tier. Well done, Sir!
@NataliaLinares
@NataliaLinares Год назад
Thank you Johnny. I only wish you would also add a “SO WHAT DO WE DO ABOUT IT?” and talk about solutions like non-extractive finance, public banks and postal banking. Would love to see a video that takes us there for your audience to fight for these solutions!!!! Said with love.
@HoneybeeHollowGardens
@HoneybeeHollowGardens 11 месяцев назад
Bitcoin
@katmannsson
@katmannsson 11 месяцев назад
@@HoneybeeHollowGardens trading one fiat currency for an even more obtuse fiat currency is not the answer.
@NahanTS
@NahanTS Год назад
Hey johny, I actually work in the finance department of a startup that had a bank account on SVB, great video! That being said, I do have a commment on the bailout part. It's important to note that in the SVB case, the bank itself was not bailed out, customers were, so while our startup got access to our cash, the bank was allowed to bankrupt and was taken over by the FDIC (which is a government agency). All of the owners of SVB lost 100% of their invested money, and institutions that had made loans to it lost their money as well, and the FDIC is selling the bank's assets to pay customers back, only if after selling assets there's money still lacking, then the FDIC will use it's money (which is the insurance fund thingy) to pay (only) customers back. I think the government was smart on this one, interfering with veeeery little (probably none) cost to tax payer, and the bank owners did lose all their money, so that ought to teach them a lesson, bank management did take their bonus but they lost their carreers and only customers were saved in this case
@OwningAuthenticity
@OwningAuthenticity Год назад
I think you hit the nail on the head - saving the bank is only good in the short run. In the long run it erodes all senses of accountability and a greater loss overall.
@newagain9964
@newagain9964 Год назад
It’s not even good in the short run. I thought capitalism had this all figured out and needs govt to stay out the way??
@ninjafruitchilled
@ninjafruitchilled Год назад
​@@newagain9964 govt needs to intervene constantly or else capitalism destroys all our lives and the entire living world.
@TomCruz54321
@TomCruz54321 Год назад
Yeah people keep saying letting the banks fail will tank the economy, what they don't realize is constantly bailing them out can also tank the economy. This bailout model is unsustainable. The government doesn't have unlimited money. More bailouts encourages more incompetence and riskiness, which in turn leads to more bank runs, which in turn leads to more drain in government budget.
@ninjafruitchilled
@ninjafruitchilled Год назад
@@TomCruz54321 the government does have unlimited money though, the problem is just inflation if they create lots of money to bail out banks.
@lolamonroe61
@lolamonroe61 8 месяцев назад
@@TomCruz54321when you bail them out the Gov eats the loss when you don’t you eat it.
@Guitarvision1
@Guitarvision1 Год назад
Love all your videos, Johnny! May I suggest putting a compressor on the master audio track? Your voiceover track is slightly lower in volume than the volume of the clips. So when the clips come up, there's a drastic change in volume for which I'm -- or maybe others too -- are having to manually adjust the device's volume. A compressor will raise the lows and lower the highs to give a more balanced mix. Just a thought. Great video once again! 🙌🏼
@joaopedrosfc
@joaopedrosfc Год назад
Awesome job at getting this video out so quick! 👏
@mrbfros454
@mrbfros454 Год назад
I love your consistent balanced approach to education. You give us the facts and offer multiple ways of responding to the facts without actually telling us what we should or shouldn’t do. This is what journalists are for and you are giving the rest journalists an excellent example! Thank you!
@rkadowns
@rkadowns Год назад
His political slant is obvious when you can see the passive aggressive nature of his words. Hardly neutral.
@TheStickman419
@TheStickman419 Год назад
@@rkadowns indeed, while Johnny cannot be described as 100% neutral...his politics are quite obvious in his videos.. I would say he's like rather than being 50/50 he's 60/40.. So while he's hardly neutral, he's not heavily biased either. That's why I watch him, cause I know that most of what I'm getting is factual and entertaining
@toshibavoodoo
@toshibavoodoo Год назад
YES, thank you! I thought is slant was just me. He gets so many tiny details wrong then builds on them. 10% reserve is a lie. And he clearly slants his videos to his political bios. To bad, as his videos like is politics only looks good on the surface.
@rkadowns
@rkadowns Год назад
@@TheStickman419 he’s polite which means his ideas are not outright dismissed. He appears to be able to have a conversation. I’d buy him a beer for his conversation.
@toshibavoodoo
@toshibavoodoo Год назад
His video would 190 degrees if a republican was in office. So many little details are "off"
@tznwyvuk471
@tznwyvuk471 Год назад
Worst thing is that nobody will be held accountable for this mess and all previous ones.
@krakken-
@krakken- Год назад
Well, a lot of people lost their jobs, stock and bondholders lost their money. Since they didn't break any laws (regulations on mid sized banks were "rolled back" a few years ago), what accountability do you think is missing? This does show a need (I think) for increased regulation of financial institutions that will cause systemic impacts. We seemed to only have partially learned that lesson after 2008...
@js-pb2kf
@js-pb2kf Год назад
And, like the Catholic Church with problem priests, the perpetrators will just shuffle around from one institution to another.
@frankie5373
@frankie5373 Год назад
That would be antisemitic
@mathemat3939
@mathemat3939 Год назад
there isnt much to hold accountable as all banks do this. The fed needs to raise the reserve amount so loan will be more expensive especially to poor people.
@cheeseontoastbrah
@cheeseontoastbrah Год назад
Well I'm sure there will be bonuses for those responsible
@hendrikjan9116
@hendrikjan9116 Год назад
the quality of your vids is just top notch. keep it up
@user-zt5st2jg5f
@user-zt5st2jg5f 6 месяцев назад
Johnny, your video production and explanations are top-tier. Well done, Sir!. Johnny, your video production and explanations are top-tier. Well done, Sir!.
@philipberthiaume2314
@philipberthiaume2314 Год назад
Financial services continually demand deregulation, cut corners, get in trouble, and demand a bail out. NO.
@TheStickman419
@TheStickman419 Год назад
Unfortunately corruption breeds corruption. There is a reason banks and investment companies are one of the top donators to politicians. It's for moments like this after all
@James-gm9cs
@James-gm9cs Год назад
There's another side to this argument where deregulation allows new competitors into the market, and the increase in competition ensures that no single bank gets too big and the risk is spread out. If a small-medium bank collapses, the system won't go down with it.
@ZachBobBob
@ZachBobBob Год назад
@@James-gm9cs If everyone weren't so corrupt maybe this could work.
@philipberthiaume2314
@philipberthiaume2314 Год назад
@@James-gm9cs I respect your point of view, it is a valid one. But the priority has to be stability of the system. At the end of the day, an executive's recklessness should not destroy someone's financial wellbeing.
@user-op8fg3ny3j
@user-op8fg3ny3j Год назад
@@ZachBobBob exactly. Too many of these systems rely on good faith which we all know is impossible
@robertm.8653
@robertm.8653 Год назад
Thank you for explaining such a complicated topic and helping us make more sense of it!
@TheStickman419
@TheStickman419 Год назад
Johnny Harris has a talent for that. He is not always 100% correct, and is sometimes more strict driven in his explanations but if there's one thing no one beats Johnny at, it's narration and breakdowns
@koikoi5520
@koikoi5520 Год назад
I think Johnny did necessarily did enough research on the subject. The taxpayer didn’t bailout svb. Silicon Valley bank has more assets than deposits so the government will just sell those assets slowly until all depositors are paid back. The gov giving everyone their money back even the money that wasn’t insured is basically the gov loaning out money until they sell svb assets. For the executive it’s just a coincidence that the bonus were paid a day before it failed. The bank exec have to let the sec know 3months prior to giving out bonus so it’s just not overnight
@phlezktravels
@phlezktravels Год назад
You're welcome!
@phlezktravels
@phlezktravels Год назад
​@@koikoi5520 "did necessarily did"
@braidena1633
@braidena1633 Год назад
@@koikoi5520 Also poorly researched, since he thinks the reserve rate is 10%. It *not* being 10% is a huge part of the problem. And I agree, it's not technically a bailout under SVB's circumstances. SVB will cease to exist as an entity, and that ain't no bailout.
@hblee88
@hblee88 8 месяцев назад
Your visualization of concepts makes viewers smarter. Wish I had this in my college days. Maybe my next lifetime. 🙏🏼
@Slothfu11
@Slothfu11 6 месяцев назад
That part at the end of that movie is so bone-chilling that I watch it not really understanding what happened or anything about banking, but it was amazing
@demeritfc3655
@demeritfc3655 Год назад
Massive respect for getting such a polished video out so quickly.
@Daniel_Yu
@Daniel_Yu Год назад
As a second year economics student I've studied this bank run and money multiplier effect extensively; but I've never been able to explain it as well as you have here. Thank you!
@waulie_palnuts
@waulie_palnuts Год назад
You're probably not gonna believe a random RU-vid commenter about this, but both this video and what you've been taught about the 'money multiplier' at undergrad are wrong. The Bank of England explain here: www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/money-creation-in-the-modern-economy.pdf?la=en&hash=9A8788FD44A62D8BB927123544205CE476E01654
@othaniel_Hakeem
@othaniel_Hakeem Год назад
Ha same
@alexalex66666
@alexalex66666 Год назад
LMFAO its funny how people call crypto a ponzi scheme but when banks run a literal ponzi scheme y'all call it "multiplier effect" and praise it🤣🤣🤣
@yahiiia9269
@yahiiia9269 Год назад
@@alexalex66666 What do you expect from sheep that think they aren't sheep? I am a sheep.
@SKULLCLASSMEDIATV
@SKULLCLASSMEDIATV Год назад
damn now ill step my game up for my next video on this
@teun9380
@teun9380 Год назад
Lovely video!! Real question here is what kind of calendar is Johnny using on the background. It looks beautiful😍
@Lauriwan97
@Lauriwan97 Год назад
As always this is an EXCELLENT video, Johnny!
@xdonnix
@xdonnix Год назад
There's been updates already. Janet Yellen at her testimony suggested that there wasn't unlimited deposit insurance. Rather it will be determined on a case by case basis depending on if the bank is classified as systemically important. Funds are already moving from small regional banks to the big banks. This story is deeper as well. You should talk about the easy money policies since 2008 that have exacerbated if not flat out caused each of these financial crises.
@Bee-tj8gc
@Bee-tj8gc Год назад
Idk why people say you need to invest your money or else it just gets loss to inflation. Even banks with teams of financial experts lose it to investing at times
@just4interest996
@just4interest996 Год назад
I’m gonna be that guy, I watched the 2hour documentary by PBS about this “easy money policies” and I didn’t understand anything. RU-vid then recommended this video the next day lol
@blufox7760
@blufox7760 Год назад
@@Bee-tj8gc to avoid losing value in hard earned money to inflation
@Ninjaeule97
@Ninjaeule97 Год назад
@@Bee-tj8gc If you simply put your money in an etf and hold it for a long time your very unlikely to lose money. If you just leave your money in the bank account inflation will slowly gobble it up.
@ConradNeill
@ConradNeill Год назад
@@just4interest996 Coldfusion did a good explainer, too. Well worth a watch.
@paulvollmer4215
@paulvollmer4215 Год назад
I'm surprised how good the quality of this video is, especially when you consider how quickly you were able to put it out. You have the perfect blend of journalism and entertainment with real digestible information.
@s1cks1d3soldado.3
@s1cks1d3soldado.3 Год назад
Ain't lyin
@TheStickman419
@TheStickman419 Год назад
Ever heard of "Captain Crunch"? As an animator myself, he's someone that you just have to know to meet up with anything sort of deadline
@braidena1633
@braidena1633 Год назад
There's a relatively small group of folks that have been expecting something along the lines of SVB crashing for a couple years -- since around the time Archegos ate shit, so perhaps he's been keeping an eye on that DD. Joe coming out of the crypt to comment on it should scare y'all, not because he has anything to do with it, but because he usually keeps on the downlow
@pinkdottie1
@pinkdottie1 Год назад
Glad i watched your video. You explained it simply and well.
@xabiax6888
@xabiax6888 Год назад
very educational brother, thank you.. always a fan of ur work👍
@leddsaliva
@leddsaliva Год назад
One of the policies that were snuck in under the radar during COVID was that the US Federal Reserve adopted the "zero reserve ratio" model that Canada has been using since 1992. I haven't read the bill yet, but if it's like Canada, banks cannot go under unless the powers that be decide they want it to happen. There is no federally mandated reserve ratio requirement. Canadian big banks can loan out as much money as they want with no deposits. Smaller banks and credit unions must still hold 10% of loans in reserve.
@darkionx
@darkionx Год назад
So infinite loan money with no reserve, that's not going to cause a problem in the future, riiiiiiighhtt???
@eddykaye8217
@eddykaye8217 Год назад
@@darkionx It's probably a major natural disaster is coming and that's why they don't care, because it won't matter. The rich are hoarding money to build massive underground paradises for them to go after it all goes down
@deacom8528
@deacom8528 Год назад
I think you are not explaining it very well because this sounds really stupit, zero reserve? what would happen if everyone pulls out the money at ones there? It sounds like an even bigger problem
@manyakus8919
@manyakus8919 Год назад
This is not true, we have the highest reserve ratio in the world.
@deacom8528
@deacom8528 Год назад
@@manyakus8919 ok you have that, but would you not also have that when their would be a 10% mandated? How does saying you do not need to have a reserve be the reason for having the highest reserve? I do not see the connection
@johnw3772
@johnw3772 Год назад
I love the video & how you were able to put it all together comprehensively. One note I have though, is to look into the controversy over the Dodd-Frank regulations. Signed post-2009, it introduced stress tests to be mandated for all banks: basically going through hypotheticals, such as what happens if theres a run on the bank when most of our assets are in federal bonds worth less than before. Then, in 2018 there was a bipartisan push & eventually was signed by Trump the repealing of a provision that required stress tests for banks between $50bn to $250bn: guess where SVB lies? $200B. smells fishy to me, but I understand coincidences happen too. Just thought you'd be interested! Great video :)
@garshtoshteles
@garshtoshteles Год назад
Excellent comment.
@imsohandsome
@imsohandsome Год назад
Lol I was watching a documentary about this yesterday. Happened 1939, happened in 2008, and we're still doing the same thing again and again
@anagram
@anagram Год назад
And because SVB was using long-term assets to pay short-term investments, any risk assessment would catch this very easily. This only works if you never will be forced to sell the long-term bonds, and they had *A LOT* of these bonds.
@AndorranStairway
@AndorranStairway Год назад
Yeah this was mentioned in the WSJ video.
@MarianRosefielder
@MarianRosefielder Год назад
Losing the hat and scarf and whatever winter accessories, is a great move! 👍
@HerbieMarais
@HerbieMarais Год назад
Saambou bank, in South Africa also went bankrupt because it pushed itself to close to the limit. When rumours started going around that they were close to failure, everybody withdrew their deposits, destroying the bank's cash flow and it went under.
@BrianWMarshall
@BrianWMarshall Год назад
Johnny This was awesome, sent to both my kids who are studying business in college! You make a complex subject very simple to understand. And your editing skills are amazing. I love the last clip that was a brilliant ending!
@allabouthelenawithgoldenwe904
Not sure the Federal Government raises rates I thinks it's the Federal Reserve.
@didierdt5420
@didierdt5420 Год назад
It's amazing how this guy keeps making these great videos at this tempo.. Keep it coming!
@KL-tn1xc
@KL-tn1xc Год назад
He's not alone, there's a whole team working on his videos. Gotta credit them too.
@hmq9052
@hmq9052 Год назад
He's a drama queen
@Didnt_ask69
@Didnt_ask69 Год назад
Nobody cares
@thecapatalistpropagator_9470
He is Woke liberal with work views
@N3therWolf
@N3therWolf Год назад
@@Didnt_ask69 obviously you do. Since you have commented multiple edgy dumb comments on this channel. 🤡 Clown
@rnrae2a
@rnrae2a Год назад
Great video informative, entertaining and too the point good job 👍
@nikolayvutov7724
@nikolayvutov7724 Год назад
Awesome video, Johnny! Good job.
@spencernoel4539
@spencernoel4539 Год назад
This is actually an amazing video, I don't usually comment, but the quality of this and level of clarity it has is unmatched. Keep up the great work Johnny!
@noel7777noel
@noel7777noel Год назад
LMAO. Money doesn't "multiply". He can't withdraw money until the baker repays the loan. So. Say the bank closes its doors. A new bank takes over the oven loan (a bond). The new bank has the oven loan and this guys account balance. In a equilibrium. Stop spreading ignorance. #RU-vid
@Guru_1092
@Guru_1092 Год назад
Regardless of what happens, those execs that paid themselves bonuses NEED to be held accountable, at the very least for their attempt to profit and run.
@AndorranStairway
@AndorranStairway Год назад
Johnny was flat out wrong about that. The bonuses were for all employees, and it was for work done from 2022. Nothing about it was out of the ordinary.
@Guru_1092
@Guru_1092 Год назад
@@AndorranStairway Can you provide a source for that? Now I'm not sure who to believe.
@sutro-311
@sutro-311 Год назад
@@AndorranStairway It may be part of the regular bonus schedule, but if the work being done in 2022 (and before) contributed to the collapse in 2023, I think a lot of people would still take issue with that. By holding those bonuses hostage when a bank collapses, it ensures a level of accountability by both the employer and the employee. Maybe an employee who knew something was fishy could have called out the company about poor money management practices, but if they have a bonus hanging over their head as a carrot, there's no way they're going to speak up and give themselves the stick by potentially puting themselves out of that money.
@Kaiserboo1871
@Kaiserboo1871 Год назад
@@Guru_1092 The source: m.ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-3_lAb8m9MpI.html
@briannaghey-hw7hj
@briannaghey-hw7hj Год назад
Not a single mention of the banks donating millions to BLM and left wing foundations before their collapse.
@mohameds2799
@mohameds2799 Год назад
Thank you for such a great video!
@MiltonHamsen-nd5bv
@MiltonHamsen-nd5bv 7 месяцев назад
Thanks Johnny. Love the video
@RybatQ
@RybatQ Год назад
Banking industry is still as corrupt and inefficient as managing customer funds as ever, not a shock.
@Neptunestef
@Neptunestef Год назад
Love how tax money keeps propping up a system that is not stable in any way. If capitalism is natural, then it shouldn’t have a crisis every decade.
@manyamaggot
@manyamaggot Год назад
​@@Neptunestef propose a system without crisis cycles
@camwatlington
@camwatlington Год назад
The banks that failed are banks that fell outside of regulatory capital requirements imposed by the Fed on the big banks. Another way of saying it is that the Fed runs simulations on all of the big banks every year to see what would happen if a certain number of scenarios occurred. If you fail one of these stress tests, then the Fed requires the bank to liquidate some of their investments to raise capital. All of the banks should be subject to the same requirements. The FDIC and the big banks are the ones propping up places like First Republic and SVB, not taxpayers. Just research the FDIC, it’s pretty straight forward. Banks pay premiums into an insurance pool, and the pool is used to cover depositors. All the big banks have passed their stress tests in each year since the financial crisis, which is why you see they are doing just fine right now, and if SVB had been subjected to the same tests, their capital risks would likely have been identified. Frankly, if the government had just taken a passing glance at SVB’s balance sheet, they would instantly have seen something was wrong. The corruption surprisingly has not been from the big banks, but from the Community Banking lobby which fought hard and spent a lot of money to be exempted from the big bank requirements.
@bilboswaggings
@bilboswaggings Год назад
@@Neptunestef why shouldn't it have a crisis if it's natural? The people in charge at the bank and the politicians both make way more money The broken part is US politics and regulations The problem in the US is the missing backlash and penalties for effectively corruption
@powertothesheeple5422
@powertothesheeple5422 Год назад
​@@Neptunestef Bailing out a failing company isn't capitalism at all. The US is FAR from a pure capitalist society. Any form of "Government" that relies on any form of a monetary system is never ever ever going to be looking out for the citizens.
@aaronwillis5585
@aaronwillis5585 Год назад
Your story telling and ability to keep up on current events is so amazing I can't tell you how much I have learned from just watching your videos keep up the good work
@dr.horror9046
@dr.horror9046 Год назад
Thank you for your excellent reporting
@skipper77
@skipper77 Год назад
Keep up the good content!! Please make one about BRICS
@trentsmith8427
@trentsmith8427 Год назад
These videos take a TON of time to make. The fact that you cranked this one out so quickly is amazing. I think I can speak for everyone when I say THANK YOU!
@DonjiKong
@DonjiKong Год назад
Not that long if you have a team of editors lol
@MrThebadger200
@MrThebadger200 Год назад
Odd that Johnny didn’t include how FDIC works. The “I” is for insurance. SVB deposits weren’t paid in full because of some “fund” the banks have for funsies. The insurance is covered by premiums they pay to FDIC to cover their risk. It’s one of the greatest programs put together by FDR and has no burden on normal people. Banks pay insurance to cover their risk. It’s beautiful.
@catherinehutcheson5024
@catherinehutcheson5024 Год назад
Thank you for doing these! As a college student, you’re the only person that’s able to thoroughly educate me on what’s going on in the world!
@haptic5273
@haptic5273 11 месяцев назад
Based on the video "Why Banks Fail," it is important to understand that the reasons behind bank failures can vary, but some common factors include: Risky lending practices: Banks that lend money to individuals or businesses that are unlikely to repay their loans are at a higher risk of failure. Poor management: Banks that are poorly managed or lack effective oversight can also be at risk of failure. Economic downturns: During times of economic recession or depression, many banks may experience financial difficulties. Fraud or corruption: Banks that engage in fraudulent or corrupt practices, such as money laundering or insider trading, can also face financial and reputational damage. To avoid these risks, banks should prioritize sound risk management practices, maintain adequate capital reserves, and maintain strong regulatory compliance. Additionally, banks should focus on building trust and strong relationships with their customers and stakeholders to ensure long-term success. Overall, it is important for banks to balance risk-taking with prudent management and regulatory compliance to ensure their long-term success and avoid the risks that can lead to failure.
@brassbandit3060
@brassbandit3060 Год назад
It's amazing that a single bank in California failing to do the one thing we thought they did made the entire country turn into panic mode
@zoanth4
@zoanth4 Год назад
Its because our entire system is a house of cards.
@Lunarcorp
@Lunarcorp Год назад
They’re doing what we thought they do, what all banks are doing. Just need the right conditions and they failed. The 10% holding is the issue. We’re sacrificing stability for economic growth.
@mtunofun1
@mtunofun1 Год назад
Hold on to your shorts when Credit Suisse goes under.
@lorenataft7074
@lorenataft7074 Год назад
I do not believe it caused the entire country to panic but I will tell you what is. My bank ..Key Bank . Had no money on Friday. No fifties, no hundreds, only small bills that had been deposited . Ok. BUT, there was a huge moving truck. Parked at the side door of the bank, and all the banks files, etc.were being removed....the Bank is closing. It doesn't take a rocket scientist to figure it out. Yet there was no announcement to depositors....
@madmachanicest9955
@madmachanicest9955 Год назад
That panic is why the Federal reserve exist in the first place.
@calvina.s.e3698
@calvina.s.e3698 Год назад
I have watched many videos about SVB collapse since it happened, but only johnny harris can make it look so simple that my grandma can understand it (perfect as usual)!
@freeculture
@freeculture Год назад
It is a bit too long for everyone, but it should do. Try searching for Fractional Reserve, there is no need to point specifically to SVB, all banks are at risk, it is a systemic problem and there is no solution within the current hegemonic economy thinking. You need the Austrian school of Economy, anything else will just perpetuate the cycles of bubbles and crashes. The State intervention aggravated the problem, prolonging the distortion that "banks are safe", no they are not, stop giving money to them unless you are willing to say goodbye to it.
@KinuGrove
@KinuGrove Год назад
Exactly
@AsidsTechTips
@AsidsTechTips Год назад
Johnny,Please can you do the same video but also explain CreditSuisse UBS, and a mention of the other US banks that failed in line with SVB.
@__Mako
@__Mako Год назад
Good job with the spreadsheet, i was never understood the multiply factor until now!
@Crimin4L
@Crimin4L Год назад
*_"If the American people ever allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered."_*_ - Thomas Jefferson_ *_"I sincerely believe that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale."_*_ - Thomas Jefferson_
@Bombstark
@Bombstark Год назад
Amazing quote!
@Crimin4L
@Crimin4L Год назад
Thomas Jefferson held a deep-seated distrust of banking institutions, particularly central banks, and this distrust was grounded in his views on individual liberty and the sovereignty of the United States government. Jefferson believed that banking establishments posed a serious threat to individual liberties, as they had the power to control the issuance of currency and, in doing so, could manipulate the economy in ways that favored the wealthy and powerful. He argued that banks had the power to create inflation and deflation, which could lead to the impoverishment of the masses and the enrichment of the few. Jefferson believed that the people's property was at risk if banks were allowed to control the issuance of currency, as they could use their power to take advantage of the people and enrich themselves. Moreover, Jefferson was concerned about the potential for central banks to undermine the sovereignty of the United States government. He believed that private central banks issuing public currency would give too much power to a few wealthy individuals, who could then use that power to influence government policy and undermine the principles of democracy. Jefferson argued that the power to issue currency should belong to the people, not private banks, and that allowing private banks to control the issuance of currency was a threat to the sovereignty of the United States government. In summary, Jefferson's views on banking institutions were grounded in his belief in individual liberty and the sovereignty of the United States government. He believed that private banks, particularly central banks, posed a threat to these values, as they had the power to manipulate the economy and potentially influence government policy in ways that favored the wealthy and powerful. Jefferson argued that the power to issue currency should belong to the people, not private banks, in order to safeguard the liberties and sovereignty of the United States.
@angelofbliss
@angelofbliss Год назад
Bro it’s too late for that in California, anyone who financed or refinanced after 2008 owns a lien not land.
@augustuslxiii
@augustuslxiii Год назад
@@Bombstark Too bad they're bullshit quotes. Jefferson never said those things.
@augustuslxiii
@augustuslxiii Год назад
Shame on you for posting these "quotes" without googling for a couple minutes. They're not real; "deflation" wasn't even a word until the 20th century. Don't just believe the authenticity of "quotes" you find online.
@timothyherrera8674
@timothyherrera8674 Год назад
I really like that you reference the old macroeconomy since I have been watching you for several years now and it feels like I can understand everything a little bit easier great work Johnny and the crew!
@mihlaliadam4382
@mihlaliadam4382 11 месяцев назад
THIS CHANNEL IS AMAZING
@straus1777
@straus1777 6 месяцев назад
On March 15, 2020, the Federal Reserve Board announced that reserve requirements ratios would be set to 0%, effective March 26, 2020. I literally googled "bank reserve requirements". Banks actually don't have reserves, when you take a loan they get a loan from the central bank that prints the money. Right now the FED charges about 5%, 30 year mortgage has a rate of about 7.2, so they take about 2% fee on top of what they owe the central bank. That is why we have such high inflation last few years
@aragorn8414
@aragorn8414 Год назад
Props to you for making an amazing video in record time! People need to hear this stuff!
@xxXDrAwesomeXxx
@xxXDrAwesomeXxx Год назад
I've seen many visualizations of banking reserve requirements and their money multiplier effects (it happens when you study economics at university), but the intro here may be the best and easiest to understand version I've seen.
@janickpauwels3792
@janickpauwels3792 Год назад
Don’t forget to add the I.O.U’s in that intro. Yes, the initial 10000 dollars is multiplied to 100000 dollars, BUT there is also a total of minus 90000 (in debt) in those same banks. The 100000 dollars is circulating in the economy, and the 90000 dollars that have been created are compensated by debt (so by putting 90000 of “missing” dollars in the accounts). That money needs to be paid back, and when it is, you automatically get back down to the original 10000. There is nothing scary about this system. If you don’t want this, then nobody would be able to loan money to buy a house or start a business. You would have to save up for 25 years and THEN buy a house. As long as everyone trusts this system, there is no problem. Your money is not gone. It has just been lent out, and will return eventually. The bank does “own” all of the money in the deposits. It is just parked somewhere else and it will return to them later. There’s nothing weird or scary going on here…
@ayoCC
@ayoCC Год назад
Information communications are so bad at schools
@spastado
@spastado 11 месяцев назад
Hi Johnny, with regards to your explanation of fractional reserve lending, it gets crazier when you learn that the system gets around the problem of holding 10%, meaning that lending is technically infinite. Regards to Liz Warren, her recent interview on CNN is great in pointing out the incompetence - her words, not mine - of the FED in sharply increasing interest rates which you have explained, contributed to the decline in prices of US treasuries bills, notes, bonds that SVB held. Which leads us to the FED in coming up with this BTFP which amounts to a bail out that you kinda feared.
@bhangbg1
@bhangbg1 Год назад
Thanks for the video sir
@lifevest1
@lifevest1 Год назад
This situation really reminds me of the covid supply chain disruptions. The system works incredibly well when all things are fine, but is not robust, and as soon as a step fails, it REALLY fails!
@viper505th
@viper505th Год назад
Just like the new Central Bank Digital Currency (CBDC) rolling out this year.
@sendthis9480
@sendthis9480 Год назад
It’s a couple old sayings: When you put “all your eggs in one basket” your entire ability to survive becomes a “house of cards” propped up on a perception of stability. In 2008 too much money was in mortgages. In 2001 too much money was in the internet. In 1990 too much money was in the Gulf War. In 1980 too much money way in Iran’s oil. It’s always the same story. The bank HAS to play with your money in order to make money…and they always take it too far and exceed the risk you are willing to accept. And they mess up.
@kdro9521
@kdro9521 Год назад
Ahhhh I love waking up in the morning a couple times a week and seeing that you guys released another amazingly well done video. Always very interesting too. Keep it up!😊
@TheStickman419
@TheStickman419 Год назад
Johnny's videos are way to dynamic and entertaining to miss.
@diyorbekabdimalikov9753
@diyorbekabdimalikov9753 Год назад
Bro, This Man changes his videos' title every second
@hassantalib2911
@hassantalib2911 Год назад
Very well explained...plz make more videos related to the finance world and economy
@NathanHarrison7
@NathanHarrison7 Год назад
Thank you very much for spelling it out Johnny. You covered points that I’ve been curious about and that nobody is covering. Most news outlets simply regurgitate the information. Thanks to you I now have a complete understanding of the A-to-Z as to how we’ve got here. And I love the graphics. And I love how the style changes from one video to the next. Very dynamic. Two things I don’t understand… How in the world can these executives be allowed to give themselves a bonus right before the government takes them over? Unconscionable. And how can something so foundational to the worlds most powerful nation be controlled, in large part, by something as fluid as human emotion? You’d think there’d be a mechanism to guard against that.
@AndorranStairway
@AndorranStairway Год назад
Johnny was wrong about the bonus being given to “executives”. It was part of standard payroll. Don’t you think the regular employees deserve to get paid? Or should they just lose their jobs with no money because the bank’s risk management team screwed up?
@AndorranStairway
@AndorranStairway Год назад
Also, the entire stock market is influenced by human emotion. A large chunk of the goods in the world have their value derived from human emotion. It’s been that way for millennia
@friadoonhemmat2963
@friadoonhemmat2963 Год назад
​@RU-vidContentCreator01 he is a scammer be careful
@compassionatecurmudgeon7025
Two things, One: Money has no morals, it spends the same if it was acquired by stealing from children or from honest socially positive work. Two: The financial system is a game and in any game cheating is allowed. The only thing that stops cheating is codified punishments. Those punishments would have to get written into law by people whos pockets are stuffed with the banks money... Because again, if there's no punishment then all cheating is valid and just part of the game. Capitalism is the stupidest idea ever. Market Socialism keeps money around, but places people over profit. Most americans seem to be confused on which of those two we live under. Hint: It's the one that doesn't give a shit if you live or die.
@NathanHarrison7
@NathanHarrison7 Год назад
Do you really consider “Bank Executives” “regular employees”?
@PokhrajRoy.
@PokhrajRoy. Год назад
Sometimes, I’m so scared of the banking system that I realised that in ‘Mary Poppins’, Michael Banks had a point when he refused to give his tuppence to the bank and wanted to give it to feeding the birds.
@JusticeAlways
@JusticeAlways Год назад
I give the birds $28 /month. That's how much a 25 lb bag of sunflower seeds cost. (Actually $30...includes the $2 sales tax).
@Herr_Damit
@Herr_Damit Год назад
@@JusticeAlways Argh, I hope you are not one of the people who are the reason that pigeons shit all over the place. We have perfectly fine parks nearby, but those birds just stay in the little room for the trash, because they are fed seeds by someone twice a day. The little food they forage for is fast food from the bins. What a life. No wonder they are fat af.
@agnosticbeliever138
@agnosticbeliever138 Год назад
I was just looking to kill time but I learned something. Good video, as usual. Thanks Johnny.
@motog-rocks6544
@motog-rocks6544 Год назад
The ENTIRE problem with SVB was that in a rising interest rate scenario, they should be able to attract more deposits by promising a higher rate of return today. Instead, their customer profile lead to the opposite effect. Secondly, you don't invest "free flowing money" from checking/savings accounts into 10 year treasuries. You lock in CDs with the right time profile as the underlying lent out loan/treasury. This allows for matching the savings with lending time period. It also means that everyone knows that CDs aren't allowed to be withdrawn at a moment's notice, thus reducing the risk of a bank run. Normally, if interest rates rise, people will spend less on their credit-cards and instead put their salary into the bank's checking account as they will earn more interest. This keeps the bank solvent if the OLDER depositor want's to withdraw and negates the effect of rising interest rates on the older treasuries. This is why banks with "narrow" customer profiles are riskier.
@Ashwin_1198
@Ashwin_1198 Год назад
"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." - Henry Ford
@WKRP187
@WKRP187 Год назад
Well our monetary system has made the US far and away the richest most powerful empire in human history. So much so that the world uses our dollar as the international standard. While it's far from perfect it's done a damn good job so far
@ledrevolver
@ledrevolver Год назад
If the execs who received those bonuses at the final hour don't at the very least face criminal charges I've lost all faith in our justice system
@shayreilly1592
@shayreilly1592 Год назад
How about setting up an international lottery; one in which every bank CEO & CFO are the tokens. If their name appears on the 'winning' ticket, they and their families are incinerated. The important question here is: should this lottery be played only once a year or every month? Lottery name: WE DON'T EXIST TO BE SCREWED OVER
@fraol.a9103
@fraol.a9103 Год назад
u just said it urself, they recieved bonuses in the past, they recieved it now and will recieve in the future
@neolithictransitrevolution427
The CEO also sold stock a week before. And whereas most bank exec stock sales are declared months in advance this was not.
@azrael21x61
@azrael21x61 Год назад
I love your videos. The fall of Credit Suisse deserves a video as well! Keep up the good work. You're amazing!
@TheCablife
@TheCablife 2 месяца назад
I loved the apropos movie clip at the end. If you haven’t seen that movie, fellow viewers, you should. It’s called “The Big Short”. It details the 2008 financial crisis and how it happened. It’s kind of a depressing watch, but it’s a great movie and very informative.
@reedsanders4044
@reedsanders4044 Год назад
Johnny I love how balanced your content is and how you strive to keep growing. Keep it up. Definitely one of the best creators on RU-vid
@avocadogaming3942
@avocadogaming3942 Год назад
Privatize the gains, socialize the losses. Government for the rich.
@alwynpinto
@alwynpinto Год назад
any other channels like this that i can follow....? Awesome episode
@thuyvuthu9634
@thuyvuthu9634 Год назад
Thank you so much for your video. It's easy to understand and remember
@Cryptix001
@Cryptix001 Год назад
You basically walked through the reason why we need to have public banks without every realizing that we need to have public banks. Our banking system is pretty far from: "leads us to all work together for the prosperity and growth of society".
@luckas221a
@luckas221a Год назад
Lemme tell you, I live in a country which does have public banks. As well as public healthcare. Some places it may work, where the economy is less unequal perhaps, but here in Brazil it only serves to broaden the abyss between the rich and poor.
@imnobd8757
@imnobd8757 Год назад
@@luckas221a i get it both pros and cons, and atleast they won't crash
@halfvolley11
@halfvolley11 Год назад
Public banks are the worst. Try banking in India. Many of them don't even have computers.
@dineshp2833
@dineshp2833 Год назад
They treat you like trash. That is why I prefer private banks.
@Kanfachan
@Kanfachan Год назад
Public banks would create worse inflation than private banks. The problem does NOT originate from private banks, it stems from centralized banking (ie central banks). Also, not having 100% reserve requirements.
@derrickcsh
@derrickcsh Год назад
Johnny always the man to explain everything in layman terms for common folks to digest, keep up the good work !
@NazriB
@NazriB Год назад
Lies again? Bang Bros Dallas Bull S**t
@noel7777noel
@noel7777noel Год назад
No. He made absolutely no mathematical sense. @2:55 that money belongs to her. Now she is a predatory lender. The baker will get money from paying customers to repay said loan. He became a predatory lender to the baker. And she became a predatory lender too. He became a predatory lender to a small business. Now his baguettes are more expensive from said interest rates on said loan. This caused inflation on the baguettes. He will become a paying customer to the baker to repay his own loan. In an equilibrium. Now the more expensive baguettes equals the money he made on collecting interest rates on loaning said money. In an equilibrium. Some how. A business owner is in debt. Being charged interest rates. Not only he has to work his but off feeding us baguettes. But support a predatory lender. Is anyone going to protect this business owner from predatory lenders. In a simple understanding. All of us can't save for a one star retirement and all of us receives a two star retirement this is impossible math. Inflation will happen.
@SecondTake123
@SecondTake123 Год назад
​@@noel7777noel thank you!
@SecondTake123
@SecondTake123 Год назад
This video is very inaccurate! Watch "97% Owned" on RU-vid!
@MrNersh
@MrNersh Год назад
Love the ending, really sharing how you feel without actually saying it. Well done
@markmakallister4653
@markmakallister4653 Год назад
This video was made for children.
@24hourtourist
@24hourtourist Год назад
Nicely done Johnny - with the now famous line from Adam McKay's "The Big Short" about the '08 financial crisis..."people will blame immigrants and poor people." 😏😅
@jameslovallo9603
@jameslovallo9603 Год назад
That's what they, in the business, call foreshadowing
@cockabondys
@cockabondys Год назад
It would be so much better if you could tell us a bit more about how BONDS actually work since not everyone is familiar with this entity. It would make this already great explanation video even better. In any case, it's one of the most informative and simple videos about SVB, which I saw here on RU-vid, thanks for your work!
@AndorranStairway
@AndorranStairway Год назад
It’s pretty simple. You lend money to the government, and when your loan (bond) matures after a certain time period, the government pays you back your money with fixed interest. These are considered very low risk investment instruments because you are pretty much guaranteed your money back unless the government is in financial ruin.
@udayhomeful
@udayhomeful 10 месяцев назад
Great plug-in of sponsor information.
@daanishhydri
@daanishhydri Год назад
Thank you for explaining ❤
@alexander1346
@alexander1346 Год назад
Amazing how these videos are becoming more frequent! Love your work Johnny =)
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