Banking Explained - Money and Credit

95 626
3 260
Kurzgesagt – In a Nutshell
Kurzgesagt – In a Nutshell - преди 7 месеца
There's brand new stuff in the Kurzgesagt Merch Shop. Check it out here:
Joshua Brown
Joshua Brown - преди 8 дни
No moar duck shirts?
Sam Torruellas
Sam Torruellas - преди месец
@Maxwell S i loved how cheesily they made the public bailout of the banks seem, despite NO ONE voting for that. Also how nicely worded the "shocks" are.
Maxwell S
Maxwell S - преди 3 месеца
You didn't explain the role of the reserve bank and how this affects money markets. House prices are going up and people are borrowing much more than banks can get from deposits. You did not explain where the banks get most of their money from, the interest they pay and their margin of profit when they lend money. Why can banks get money from the money markets but not ordinary people etc.
mm 2018
mm 2018 - преди ден
Pyramid scheme
Traian Coza
Traian Coza - преди 2 дни
There's more to this. Banks literally create money out of nothing.
JJ Prempeh
JJ Prempeh - преди 2 дни
Jaded Wanderer
Jaded Wanderer - преди 2 дни
I like Kurtgesagt but this video is shit ! The information in this short film ignores all the really important things we should know about money, currency and banking. A truly informative video would explain usury in banking, the dire consequences of charging interest and fractional reserve banking.
Thomas - преди 3 дни
Man walks into bank a depositor of signature dollars in United States currency notes by blank endorsement. Bank now becomes servicer from abandoned par value in exchange for face. Bank servicer in real time reposits par value at 90 percent by proper endorsement underwritten man face. Man walks out a natural person fool as a customer ignorantly pleased with his 10 percent taxed over and over at exchange rate. There be the free checking service for off book balance sheet of account from false profit.
Tha Thalak
Tha Thalak - преди 3 дни
This video is disappointing. Banks create money by lending the money, they don't lend the money that their customers store in the bank, they just type the amount of money to your account, and by doing so, they create new money. This is serious point I'm disappointed
Leprosu Gnome
Leprosu Gnome - преди 4 дни
(((banks))) are the biggest problem in the world, they have all the money in existence, and yet they just keep getting more and more. They could literally change the world.
Jennifer Davis
Jennifer Davis - преди 6 дни
Wow this really helpful!! I got a hacked transfer of £15,000 from wirmonhackers,com
Mr Anonymous
Mr Anonymous - преди 7 дни
Can you please do a video on how banks trade on money markets
Da Infinity Stonks
Da Infinity Stonks - преди 8 дни
Bank loans are ponzi schemes, change my mind.
Aryan Das
Aryan Das - преди 8 дни
Intelligent view
robittiget - преди 8 дни
Neo libertarians love talking about how great the free market is but when the banks fail us noone talking about how economic Darwinism would say these banks are inefficient and cannot survive without a nanny state and who’s getting rich off all this?
kilroy987 - преди 10 дни
So explain again how someone can sell 1 cow for the price of 2 to someone who sells it for the price of 3 until ultimately someone paid the price of 8 cows and got 1 how that helps anyone besides rich people?
Archduke Franz Ferdinand
Archduke Franz Ferdinand - преди 7 дни
​@kilroy987 what's your point
Wojtek The Bear
Wojtek The Bear - преди 8 дни
@kilroy987 Then the purchaser was stupid. You buy things at a price because you value the item at the price. If you didn't think an apple was worth $2.00, you wouldn't pay $2.00 for it.
kilroy987 - преди 8 дни
Or he was told it was worth eight or that he could sell it as nine, but it stopped because no one else would buy it for that price.
Wojtek The Bear
Wojtek The Bear - преди 8 дни
This has nothing to do with banking or monetary policy. Some dude just bought a cow for the price of eight cows because he thought the cow was worth eight.
Archduke Franz Ferdinand
Archduke Franz Ferdinand - преди 9 дни
Jerry Wiggins II
Jerry Wiggins II - преди 12 дни
you forgot to mention that it was government regulations that created the environment for the 08 crash in the first place. if banks had to shoulder all the risk themselves, the crash never would've happened in that way because no one would've made those bad loans. instead, when banks could just sell risky assets off to the likes of fanny mae and Freddie mac, they would've been stupid not pull in as much money as possible.
Wojtek The Bear
Wojtek The Bear - преди 7 дни
@Jerry Wiggins II Did it; you're still an idiot.
Jerry Wiggins II
Jerry Wiggins II - преди 7 дни
@Wojtek The Bear do your research.
Wojtek The Bear
Wojtek The Bear - преди 7 дни
@Jerry Wiggins II The first depression? What? Depressions have been a fucking thing since the beginnings of market economies back in the 1500's. All a depression is a shrinkage of an economy over multiple quarters. That's happened a lot since the 1500's.
Jerry Wiggins II
Jerry Wiggins II - преди 8 дни
@Wojtek The Bear you need to do some research chief, I was talking about the first depression, not the great depression. You also need to learn about economics.
Wojtek The Bear
Wojtek The Bear - преди 8 дни
@Jerry Wiggins II He didn't. Coolidge left office on March of 1929. The crash didn't happen until October. You could at least get your basic historical facts right before you try to debate someone. Also I never said anything should be propped up. You said that "bankers" were able to destroy everything because they didn't feel the impact, completely forgetting that these "bankers" were the ones that dealt with all the financial responsibility of the firm when they went under. Those financial obligations don't just disappear after all. Business 101. You can compare this to cancer all you want, but, surprisingly, there are differences between a deadly medical condition and economics.
C2L Redstone
C2L Redstone - преди 12 дни
Nice to see the Taipei 101.
Túlio Sathler
Túlio Sathler - преди 13 дни
Mr M
Mr M - преди 13 дни
If you don't want to kill a banker after knowing how banking works you didn't get it...
Wojtek The Bear
Wojtek The Bear - преди 8 дни
@Mr M Central banks aren't private. Read a fucking textbook. The Federal Reserve, for instance, is an independent regulatory agency within the US government, which got its power through the Federal Reserve Act, giving it the power originally delegated to the House of Representatives. This act has since been renewed with added conditions on it. Other independent government agencies include: the FBI, Smithsonian, UPS, etc. Are you going to claim those are all for profit private institutions now too? Fuck off.
Mr M
Mr M - преди 8 дни
@Wojtek The Bear lol "vital for the economy" that we trust a private bank ... you need some history lessons ... you can't taper a ponzi so that's why they keep printing money on our behalf
Wojtek The Bear
Wojtek The Bear - преди 8 дни
@Mr M Yeah I totally know what you meant and my point still stands. I also know why central banks exist and how they are monetary institutions vital for an economy and not some for-profit Ponzi scheme you think they are.
Mr M
Mr M - преди 8 дни
@Wojtek The Bear I mean the owners, not the employees, and I think you don't get how central banks are basically running a ponzi
petscop 2
petscop 2 - преди 13 дни
Is no one going to talk about how it says ΔSS on the chalkboard at 0:16
Rob Hollister
Rob Hollister - преди 15 дни
if i go to the bank and hand them 100 € , they will take like 70 € and multiply it with 7. This amount is given to new customers which come to get money. This process is not well known, so needs to be in such a clip + it raises another of our beloved financial bubbles.
Wojtek The Bear
Wojtek The Bear - преди 8 дни
That's not how fractional reserve banking works at all. You're just creating a strawman of a bank and attacking it for internet points. Disgusting.
Luigi Trapanese
Luigi Trapanese - преди 17 дни
hey, bench in italian is 'panchina'
Sunny shah
Sunny shah - преди 17 дни
Simple, Banks make money by charging high interest rates on loans, they lend out money they don't even physically have, and charage crazy interest rates on money created from thin air. It's a scam, especially the federal reserve bank, it's not federal, there is no reserve, and it's not a bank, it's a private corporation that lends money to the US government and banks and control the flow of money in economy. Again, it's not a government bank, it's a private bank.
"Permit me to issue and control the money of a nation, and I care not who makes its laws! "
~Mayer Amschel Rothschild  (German Jewish banker and the founder of the Rothschild banking dynasty). 
The federal reserve bank controls the US government, and with it, a lot of the world, because the dollar is the basis of international monetary exchange, if the dollar goes down, so does the world.
that's why even though US banks were responsible for the financial crisis of 2008, it's effects were felt world wide because all banks are interconnected and controlled by the top aristocrats.
Wojtek The Bear
Wojtek The Bear - преди 8 дни
It's sad that conspiracy bullshit like this is getting upvoted.
epiclolyay - преди 18 дни
JP morgan wants to know your location
outsideworld76 - преди 19 дни
Totally NOT how modern day banking works.
Katherine A. Budd
Katherine A. Budd - преди 19 дни
Here's a question for you. I know that banks like the RBC are not LEGALLY allowed to give out my financial information to lending companies that I have nothing to do with (I have nothing to do with any of them) but tell me, how is it that months that close with my RBC bank account balance being lower than 25 dollars, are followed by an invitation by Fairstone (a lending company) to lend me 3,500 dollars. Months in which I have a higher balance are never followed by a letter from Fairstone asking me if I want to borrow money from them. This has been going on for years. I know that banks like the RBC are not legally allowed to sell my balance information to lending companies like Fairstone, but it's quite a coincidence that this keeps happening to me.
Omid Norozi
Omid Norozi - преди 20 дни
Bank is mean as an river bank, controlling the flow of money.
Nicolas Angel
Nicolas Angel - преди 20 дни
3:46 i saw something that is not a coin
Nicolas Angel
Nicolas Angel - преди 20 дни
I mean 3:45
Khalid Al Anzy
Khalid Al Anzy - преди 21 ден
Charging interest on loans inflates the loan to a level where it's greater in value than the level of money there is in the world which means that it is impossible to pay off the debt because there isn't enough money.
Khalid Al Anzy
Khalid Al Anzy - преди 7 дни
@Wojtek The Bear Alright let's use your example of money flowing through an economy: If person A took a $100 dollar loan and has to repay $101 back and at the same time another person takes a $100 dollar loan and needs to give back $101, they both owe back $202. Therefore if person A pays $100 to the bank and then exchange a $1 from person B to pay off his $101, then person B would have $99 to repay his $101 debt. I just used the concept of money flowing in an economy which yes, some people will be able to pay off their debt, but some will not because other people using their money (that's loaned from the bank) to pay off theirs. Just remember that the bank prints money and charges interest, thus for every dollar printed, there is interested charged and it's a never ending cycle. I'd be more than happy to discuss this with you on discord if you want :)
Wojtek The Bear
Wojtek The Bear - преди 7 дни
@Khalid Al Anzy You keep saying the amount of money is less than the debt and I'll keep saying how little I care because it doesn't matter. Money flows in an economy, it's not static. Maybe this will better explain things. Let's say there's $1,000 in the economy and $100 in debt. If we used the money in the economy to pay off the debt, how much money is still in the economy? $1,000. The money used to pay off the loan doesn't disappear after all, it continues to flow through the economy.
Khalid Al Anzy
Khalid Al Anzy - преди 7 дни
@Wojtek The Bear Let me explain the $100 bill answer: Yes, there are going to be people that will be able to pay off their loan, however, not everybody will because simply the amount of money is not proportionate to the value of debt. For example, if there are 10 people that each borrow $100,000 at a $1 each of interest, then between these people there is a 1,000,000 dollars. However, they all have to pay back $1,000,010 together. Which means that when the tenth person to pay off their loan, he would be $9 dollars short. And there are many books that quote Henry Ford making that quote. And going back to your example of the $100 bill, you mentioned that you could pay off $100 dollar of you loan, yeah but paying it back to the banks means that the banks are going to take the $100 and lend it back with interest. The banking system does not allow EVERYBODY to pay back their loan. Like for example, right now there is $256 trillions dollars of debt, but there is only $86 trillion dollars, which means that only a portion of the $256 trillion will be paid off. You're missing the next step.
Wojtek The Bear
Wojtek The Bear - преди 7 дни
@Khalid Al Anzy Actually US dollars are printed by the US Treasury. Specifically the Bureau of Engraving and Printing within the US Treasury. So that's strike one. Strike two: This money isn't printed at an interest. That's just flat out wrong. The only interest collected by the Federal Reserve is on loans it makes to other private banks and government bonds it is forced to hold due to legislation added to the Federal Reserve Act by Congress. Strike two. When there's $100,000 in the economy and $100,001 in loans outstanding, it works exactly as I already said. Some of the money used to pay off the loan will end up back in the hands of the people who originally paid some of it off. Do you think the bank just burns your money when it gets a repayment? No, it pays its own bills and makes its own investments, which causes the money to continue flowing through the economy. Strike three. Henry Ford never made that quote. There is no credible source for him making that quote. At best there's a paraphrased version attributed to him during a House debate in the 1930's, and even that's spotty. Also Ford isn't exactly the best source considering his is an infamous raging anti-Semite. This also says nothing about anything being a mathematical fraud, just that Ford didn't like the finance sector (and, once again, he never even made that quote to begin with). Your 2008 conspiracy is even dumber. The problem was caused by a housing bubble which burst, meaning people weren't able to profit off of their supposed investments in housing, causing them to miss loan payments to banks. Funny how you forget that it was the investment banks that were in the most trouble even though those banks have nothing to do with what we consider banking (loaning money out). Lehmann Brothers, the most infamous example of a banking collapse during the recession, was an investment bank, not a commercial bank. Read a money and banking textbook. It'll do you wonders.
Khalid Al Anzy
Khalid Al Anzy - преди 8 дни
@Wojtek The Bear You're missing the point. The bank is the only source for money to be produced. When the bank wants to give money to the world, it PRINTS it, and then charges interest. Therefore for example, when the world has 0$, and the bank lends to the people 100,000$ and charges 1% interest, how are the people expected to pay back 100,001$ when there's only 100,000$?! And this is a real life example: the current world money supply is 86 trillion dollars. World debt is 256 trillion dollars. Which begs the question, how are you supposed to pay 256 trillion dollars if you only have 86 trillion?! That happened because the bank charged money that doesn't exist on the form of interest. As Henry Ford once said: "It is well enough that people of the nation do no understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning" This further shows that people, who are experts in business and finance, argue that interests charged on loans are a MATHEMATICAL FRAUD. Just look at the 2008 financial crisis, there wasn't enough money to pay the banks because the banks charged money that doesn't exist due to them charging interest.
Muhammad Adlan
Muhammad Adlan - преди 21 ден
please make a video about bitcoin or any cryptocurrency and blockchain technology
Dan Rockwell
Dan Rockwell - преди 21 ден
I have been trying to remove medicals off my collections and a bad score, i hired fixcreditsolutions @outlookcom and was able to get my collections removed also closed two of my credit cards with very affordable amount
Albert Dever
Albert Dever - преди 22 дни
I have tried plenty of money-making methods in the past but only learned that all of them are bogus. My buddies then e-mailed me to suggest I google “Sοdαmzοt Sizo” money-making method. I am now a regular earner of hundred dollars. You should try it personally. .
David Parkell
David Parkell - преди 22 дни
Good this video was a cartoon. We must be treated like children to begin to imagine how we are stripped of our assets. Today's Sunday, who else worked today besides me? Likely everyone who had dirty laundry to be done on the day "off". Who is with me ?
MakeTheEUGreatAgain - преди 23 дни
Banks HAVE to collect money so they can lend, but they still end up creating money. I usually explain it this way: Imagine john. John has all the money there is in the economy - 1000$. he puts it in a bank. The bank by law has to reserve 10%. So the bank reserves 100$ and lends out the other 900$ to Charles. Charles then takes this loan and puts it in another bank. That bank reserves 10% (90$) and lends the other 810$ to Nick. Now you can see how money has been created. Charles has 900$ to spent and nick has 810$ to spend (to a total of 1710$), while there is only 1000$ real dollars in this economy. If Charles or Nick fails to pay, the system crumbles. However, each bank lent out less than what they received in deposits. Conlusion: Yes, banks create money. No, they cant do it arbitrarly.
Wojtek The Bear
Wojtek The Bear - преди 21 ден
@MakeTheEUGreatAgain I know, I just wanted to point it out so people know that the system isn't really that fragile. There's already a bunch of ignorant reasons for people to oppose banking; I didn't want to add to them.
MakeTheEUGreatAgain - преди 22 дни
@Wojtek The Bear Ofc, it is just an example of how it works and how it fails. The difference in reality is the scale. You need big default rates for a system to crumble.
Wojtek The Bear
Wojtek The Bear - преди 22 дни
Note: realistically the system doesn't actually crumble as bank almost never lend up to their lower bounds and there are systems in place for banks to get emergency funds in case they go insolvent. Finally, insolvent doesn't mean unprofitable.
Mayu Jog
Mayu Jog - преди 23 дни
that pikachu is menacing
KeRen Tan
KeRen Tan - преди 23 дни
Tip: Do not show this video to any child below 16.
Alice Lu
Alice Lu - преди 23 дни
Oh god, don’t make things up...
Alejandro Arce Pérez
Alejandro Arce Pérez - преди 24 дни
Im colombian n' i love it this chanel, grettins
Kijas - преди 25 дни
5:00 the problem with crowdfund you missed to mention is the chance of fraudulent campaigns :/. Other wise great video!
epic - преди 25 дни
poor trees.
Menos The Name
Menos The Name - преди 26 дни
The banking industry is a bit like taxes. You put money in and others get use out of that money.
kai liang
kai liang - преди 26 дни
This video is Awesome!
Ghastly_Grinner - преди 26 дни
2:36 I like how this guy fails to point out that it was the Government forcing banks to lend to low income folks that caused the 2008 financial crisis
Ghastly_Grinner - преди 21 ден
@Wojtek The Bear the banks were forced at gunpoint by the government to lend to minorities and the poor who had no way of ever paying off their debts
Ghastly_Grinner - преди 21 ден
@Wojtek The Bear you bring up the Nobel prize like its actually still prestigious paul Krugman wone one thoes things and his economic thory has been debunked for generations
Wojtek The Bear
Wojtek The Bear - преди 21 ден
@Ghastly_Grinner This is the same conclusion reached by Nobel prize winning economist Robert Shiller, one of the few economists who predicted the financial crisis, or, well, the severity of it at the least.
Ghastly_Grinner - преди 22 дни
@Wojtek The Bear You are full of 💩or just Ignorant
ouo svavv
ouo svavv - преди 26 дни
interests is agaisnt the bible
Cleric775 - преди 27 дни
Don't bail them out.
Don't buy the "bad assets".
That is a bad idea.
Cleric775 - преди 27 дни
I have to correct you: they provide debts, not resources.
Debt is not a resource, but a deficit.
Wojtek The Bear
Wojtek The Bear - преди 26 дни
Debt isn't a deficit. You're mixing up the two terms. Also banks don't provide debt. That doesn't even make sense. Nowhere buys debt. Banks act as an intermediary between savers and borrowers, providing a short term injection of cash to said borrowers.
Mateo Royo
Mateo Royo - преди 28 дни
When you invested millions of dollars in the stock market,then it collapses.

_S T I N K S_

However,you realized that you've already earned much more money than the one you lost because of the amount of successful investments you made in the past.

*S T O N K S*
Cardăsda - преди 28 дни
Banking...biggest scam in history
Artem Glushchuk
Artem Glushchuk - преди 29 дни
Not a single word about bitcoin, seriously ?=/
Artem Glushchuk
Artem Glushchuk - преди 26 дни
Wojtek The Bear xD bitcoin is the closest concept to value. Nevermind
Wojtek The Bear
Wojtek The Bear - преди 26 дни
Bitcoin isn't terribly important as it's 99% a speculative currency.
Guilherme Prado
Guilherme Prado - преди 29 дни
Bankers must die
sexy korean girl
sexy korean girl - преди месец
we are all slaves
zappos49 - преди месец
Banks dont lend money that people deposit, Banks lend money created out of thin air
Wojtek The Bear
Wojtek The Bear - преди месец
@zappos49 Mike Maloney isn't a credible source. He's a precious metal investor with no academic background relating to banking, finance, or economics, and whose goal is to only encourage people to buy precious metal (particularly through him). Are you really trying to suggest that he's an unbiased (or even credible) source when he's literally trying to sell you his alternative to money?
zappos49 - преди месец
@Wojtek The Bear i would start with Mike Maloney videos
zappos49 - преди месец
@Wojtek The Bear you would think so but you are wrong, so some research
Wojtek The Bear
Wojtek The Bear - преди месец
No, that's straight up illegal. Banks lend out deposit, hence the phrase fractional reserve banking. A fraction of all deposits are kept as reserves; the rest loaned out.
Søren Steinmetz
Søren Steinmetz - преди месец
Lot of banks demand a fee to let you have your money in them.
So essential, you have to pay them for borrowing your money.
Unless you have multi millions placed in them, then you might get a small interest instead.
Søren Steinmetz
Søren Steinmetz - преди месец
I get an interest of 0.00% on my account, until it grows above 5 mil Danish Kroner (just below $1 mil) And I have to pay around $250 /year just to have an account with them (and they are one of the cheapest to use) Since it is mandatory to have a bank account, there is not that much to do to avoid it.
Wojtek The Bear
Wojtek The Bear - преди месец
Everyone gets a small interest. The reason they might sometimes charge a small interest is because you benefit from storing your money in a bank. Otherwise you wouldn't be doing it.
Christophe Breland
Christophe Breland - преди месец
I wonder if it's because of the digitization of money that allows for ever larger crisis of does it allow it to be fixed easier
Wojtek The Bear
Wojtek The Bear - преди месец
Ever larger crises? Our economic downturns have been fairly mild. Even the Great Recession was much more milder than it could've been.
Joy Zhou
Joy Zhou - преди месец
Investment banks is probably not a good example of a better alternative of banks...
Amun-Ra - преди месец
Even though we all use them if you look into the origin of banks the way it got started was a scam
Navaid Syed
Navaid Syed - преди месец
Just the fact that "banking lobby blocked further legislation" negates the notion that legislation can do anything good. Under the influence of banking lobbies, banking legislation is only working for big banks and limiting the competition.
Navaid Syed
Navaid Syed - преди 29 дни
@Wojtek The Bear And big banks have got about six trillion in taxpayers funded handouts and bailouts since 2008 for what?
Navaid Syed
Navaid Syed - преди 29 дни
@Wojtek The Bear So, shadow bankers caused crash. not the big banks?
Wojtek The Bear
Wojtek The Bear - преди месец
@Navaid Syed No, I'm saying there were no regulations in place to begin with. Shadowbanking wasn't covered by banking regulations since they were never defined as banks. Dodd-Frank gave them some.
Navaid Syed
Navaid Syed - преди месец
@Wojtek The Bear So, you are saying that we needed more regulations because regulations failed?
KanIHabe DaPusiBaws
KanIHabe DaPusiBaws - преди месец
Economics are fuckin harder to understand and comprehend than Quantum Physics seriously
Wojtek The Bear
Wojtek The Bear - преди месец
A good understanding of statistics and a rudimentary understanding of calculus (particularly derivatives) helps.
Andrei Naramzoiu
Andrei Naramzoiu - преди месец
Yay i'm italian
Mofo Performance
Mofo Performance - преди месец
this isn't even remotely accurate. Money is debt that is created from thin air now, not assets that are held and lent
Wojtek The Bear
Wojtek The Bear - преди месец
Someone never heard that its possible to be a liability to one person and an asset to another. USD is a liability of the Federal Reserve and an asset to anyone who holds it.
Ju Ki
Ju Ki - преди месец
Banks... risks management system.. please... who are reporting record profits...
Wojtek The Bear
Wojtek The Bear - преди месец
You do realize what a risk management system is, right? No one ever said they couldn't be profitable. In fact, the whole point of them is to be profitable.