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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What about a video about Bitcoin?
Did not like this video. It is a bit biased.
These microbanks, alternative banks might be good for small things but will never be good to finance a nuclear plant, a big car factory and many other business that generate thousands of jobs.
Banks need to be regulated and controlled but canno be replaced with a microbank
The video is nice, and I could use a little more explanation in detail
May be a short explanation of what a Credit Default Swap certificate is. The unsustainable mean to goldplate a junk bond, used by banks, which was the main reason for the credit crunch of 2008.
In 2022, the hot item has become "Fiat Money", money invented on the spot with a simple reconciliation, and can have unknown as unforeseen effects on the economy as a whole. First of all, a galloping inflation.
Great video, thanks…
In Italian "bench" is "panchina". I am Italian grew up in Italy and the word "benco" doesn't exist in Italian and certainly doesn't mean bench. 🙄
Not a single mention of cryptocurrencies…
KING CAN PRINT OWN MONEY
Is it only me who wants to play the video game ?
What about inflation and printing money out of thin air by the central banks? simply stealing the value of the people savings ? is that crucial for our society as well? I think you have skipped the most important part about Banks
Awesome explaination video. Which software used for such animations?
Banks are not financial intermediaries. Banks create money by selling their credit in exchange for cash or debt. Banks create credit out of nothing unlike non bank financial institutions. Banks create deposits when they exchange their credit for cash or debt(making loans). The reason why banks pay interest for cash is for liquidity purposes. Cash or tokens provide liquidity in an economy by being able to exchanged for goods or services. But demand deposits can be accessed by debit or credit cards, letters of credit, bank transfers, drafts, cheques, bills of exchange, bills of credit. These cash substitutes can be used as substitute for cash. When customers demand for cash and the banks cash runs out, the deposits in the bank never run out. The cause of bank runs is not being able to provide liquidity. After all only about 3% of all money is in cash. Today most people use credit/debit cards and other electronic payment methods and therefore bank runs almost never happens. This is coupled by the fact that central banks can print as much cash as necessary for tokens today unlike before when coins were made up of copper, silver or gold.
It is pathetic that in a video showing how banking works you have deliberately left out the money creation bit
"Banks lend out the savings". This is far from true. Usually Kurzgesagt gets it right, but this time it did not, which by itself demonstrates how complex and mysterious is the modern financial system. With fractional reserve system, banks create money out of thin air, and the requirement to be backed with savings only gets smaller and smaller
You should do a video about cryptocurrencies and blockchains.
Hiuyuuuuu08rudue
Request to make one on cryptocurrency and another on blockchain
Please explain Private Equity – the place where individuals gets the richest in the shortest time with the least risk ever in human history.
Those who don't manage their money will always work for those who do
The thing is that banks don't even offer any interest to most people with bank accounts anymore. It actually costs money to have a savings account. People just have checking accounts free with direct deposit so that they can do business electronically, have a debit card, etc. They have a bank account because they need one, not because they want one.
The Federal Central Bank, THE FED RESERVE. sets the rules that has caused inflation so that the gov. can inflate away their debt by reducing the value of your currency. Costs don't go up, because of all the printing of free money it just takes more to buy the same old things now. This was done on purpose, it's not a mistake.
How long this video is: “6 minutes”
How long it look me to finish: “14 minutes due to rewinding to understand it”
Making a bank on a game (the game is ark) and came here to find out how to profit from running it.
“In a capitalist society, man exploits man. In a socialist society, it’s the other way round.”
I don't really understand
Do you have a reference for the claim that credit unions did better than for profit banks during the 2008 financial crisis?
99% of comments: People being mad at banks
1%: everything else
Soooo. 2022 here. Russia invades Ukraine and is kicked off of the international banking system. Wonder what that will do.
Today you can add here Islamic Finance
Usually you make good videos, but this one was way to simple, and didn't really explain modern banking at all. Maybe it's time for you to revisit this topic.
What actually happened after the 2008 banking crisis, was that the little guy got wiped out. Meanwhile, the rich all consolidated their assets and got many times richer. And here we are. All of us poorer. And the Banks are still in business, still paying themselves massive bonuses. And actually the answer is to nationalise the banks so that they have to work for us, rather than their shareholders and bosses.
I love your videos! Having this one updated one with cryptocurrencies would be awesome!
Give me a break. Money is created when someone gets a a bank loan. Then poof! You have a piece of paper called a check or your bank acount goes up. It is all fake. To pay them back you have to work.
Can you say all that again, just slower this time ?😅☹️
Nice jobs,thanks share
I guess we will skip the elephant in the room regarding bankers…
I will forever be indebted to you, you've changed my whole life and i continue to preach about your name for the world to hear you've saved me from a huge financial debt with just little investment, thanks so much Mrs Megan Tracey.