I love the way Charlie Munger always steps in at the end with just a few poignant lines. The saddest thing of all is that it is really just decent common sense. 'What we learn from history is that people don't learn from history.” - Warren Buffet.27 Jun 2022

@leonphillips7132

Жыл бұрын

Psychopaths don’t learn from history. Now we know who is the driving force behind the madness and mismanagement.

Great video, I've been interested in investing ever since I came across articles of people making up to $150,000 and more in this period, thanks for the video but is it really possible for a retail investor to achieve this in months?

@bob.weaver72

11 ай бұрын

I've purchased numerous stocks in individual firms. Because there are so many stocks that will skyrocket in the long run, it is currently safe to buy in on ETF and ride it out. Due to fud, I sold out early, but then retraced my ways and re-invested $350,000 with a financial advisor who manages my account. I received an 82% return last year and will see where it goes this year.

@lipglosskitten2610

11 ай бұрын

that's quite impressive, you surely made a good bit of money. I myself invested in warren's BRK-A stock quite pricey but totally worth it.

@Oly_laura

11 ай бұрын

@@lipglosskitten2610 I just started a few months back, I'm going for long term, I'm still trying to wrap my head around it, who’s this advisor you work with ?

@lipglosskitten2610

11 ай бұрын

@@Oly_laura 'Catherine Morrison Evans’is the coach that guides me. She’s a verified coach and she helped me see that returns can be made in both bull and bear markets. She covers things like investing, insurance, making sure retirement is well funded and looking at ways to have a volatility buffer for investment risk, lots of things like that.

@Oly_laura

11 ай бұрын

@@lipglosskitten2610 thanks for sharing this, I am in conversations with your advisor, and she really has substance, having interviewed her properly and reviewed her model, I am hoping she takes me on quite seriously too

I love that Charlie is just sitting there eating pretzels

@sohu86x

Жыл бұрын

He's eating See's Candy, peanut caramel probably. Berkshire owns See's.

@gnir81

Жыл бұрын

You don't have a very good eye

@kabirkumar5815

Жыл бұрын

@@gnir81 come on

@gnir81

Жыл бұрын

@@kabirkumar5815 you too don't have a good eye

@djammer

Жыл бұрын

@@gnir81 I wish you the best with your depression

We’re gonna miss these guys when they’re gone. I wish there were some way we could put Warren and Charlie in charge of the Fed forever. Old fashioned Wisdom never goes out of style.

@LilyLin-hz7jn

Жыл бұрын

I agree with what you said, bankers are bloody and they will do anything to make money. I think we are on the same page in these points, maybe we can communicate more with each other.

@richwhitelivesmatterforsureduh

Жыл бұрын

We be long gone before them. Lol. They rich they be buying organs from china. #duh

@davem3789

Жыл бұрын

The Fed did what they were told in 2020 and printed a ton of money. That along with the hand outs that congress gave in 20 and 21 led to all of the inflation. Powell couldn’t do anything until he was confirmed as Chair for this term. He’s done pretty well. The real problem is the government continually spending and borrowing more.

@5133937

Жыл бұрын

Maybe we could train an AI model on all their wisdom over the years and then have it run the Fed, Treasury, FDIC, and the banking system.

@ericy2158

Жыл бұрын

I'm really going to miss them when they depart. They're a stabilizing force of common sense and wisdom.

Those signs are comedy gold😂

Totally agree with what Munger and Buffett said about bankers. Charlie Munger: I don't think having a bunch of bankers trying to get rich 'leads to great things.' Yet that's how wall street and Banks are doing now.

@ghosthdel3098

Жыл бұрын

My dad is a banker we are doing okay. We have 5 cars (2 range rovers, 1 ford raptor and 2 BMWs), a 4 bedrooms house with an indoor heated pool and a backyard. We are not rich there are lots of people who are richer than us!

@thebiggiechingmcdingding4677

Жыл бұрын

​@@ghosthdel3098 that's great dude but do you really think that compensation is equal to the actual human value produced by your father? I work with Law Enforcement and deal with a lot and make barely $50,000 a year in California. I have 1 2015 Mazda 6 that I owe $12,000 on, I rent a garage for $650 a month. Bankers produce value. They facilitate finance and commerce. The banking system is broken with disproportionate distributions of wealth in the American system.

@djtjpain

Жыл бұрын

@@thebiggiechingmcdingding4677 not just banking, our whole economy in the US is broken with disproportionate distributions of wealth

@tc3383

Жыл бұрын

@@ghosthdel3098 in real life your dad works the counter at Wells Fargo. He comes home beats your mom who’s basement you live in and you just graduated high school. Thanks for sharing your story son.

@ghosthdel3098

Жыл бұрын

@@thebiggiechingmcdingding4677 Yes is the answer to your Q "do you really think that compensation is equal to the actual human value produced by your father?" He works long hours and sometime he doesnt even get to see his family because he had to go to places like Monaco and NYC to meet client/s. Do you know how demanding these wealthy individuals are? They are very demanding, especially with thiur money/wealth... They want immediate positive return always, this is why some bankers take huge risks, whatever they are. Buffet and Munger is at the top of Berkshire, the question should be how hard are Berkshire financial advisors work to get +Ve results year in year out for these 2 and their shareholders. I am a huge fan of Buffet and Munger but you dont know how vicious they are in the day to day work

I'm wondering if people who went through the financial crisis in 2008 had an easier time than me right now. The stock market is making me really worried because I've lost over $27,000 in just this month and I'm not making as much money as I used to. This is making me concerned that I might not have enough money saved up for my retirement since I can't add to my savings.

@alexyoung3126

Жыл бұрын

In a constantly changing market, there are good opportunities to make money even if the market is unpredictable. This uncertain time may actually be a chance to adjust your investments. It's helpful to work with a professional financial advisor or broker to make sure your investments are spread out in different places, which can be good for your overall investment strategy.

@joesphcu8975

Жыл бұрын

I'll suggest you create a diversification strategy because building a good financial-portfolio has been more complex since covid. Recently my colleague advised me to hire an advisor, surprisingly I have accrued over $120K under the guidance of my coach during this crash. She figured out Defensive strategies to protect my portfolio and make profit from this roller coaster market.

@lawerencemiller9720

Жыл бұрын

Can you kindly provide me with the information of your investment advisor as I am currently in desperate need of one?

@joesphcu8975

Жыл бұрын

Helene Claire Johnson is my adviser and she is highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.

@lawerencemiller9720

Жыл бұрын

thank you so much for this tip! Finding your coach was a breeze and I was really impressed with all the research I did on her credentials before scheduling a call. It's clear from her résumé that she's extremely knowledgeable and skilled, and I'm so excited to have the chance to talk to her.

Can’t help but chuckle, even time I see Charlie snacking on food 😂 every time it gets me

Charlie only need one line to get his point across. What a legend man!

First it was SVB and then first republic,.take your money out from the bank ..buy stocks and bitcoin,. that's the only way to survive in this recession.

@micheallancelot

Жыл бұрын

The stock market is a way to hedge against inflation. Most notably amidst recession, investors need to understand where and how to allocate funds to hedge against inflation and still make profits.

@jirinamuzikova

Жыл бұрын

@@micheallancelot in my opinion, the impact of the rise or fall of the U.S. dollar on investments is multi-faceted but learning how to grow your money has never been easier than now that you can explore and experience a truly diverse marketplace passively by using a well-performing portfolio-advisor.

@MarthaDavis-fh6cw

Жыл бұрын

@@jirinamuzikova I agree, having a portfolio-advisor for investing is genius! Not long ago amidst the pandemic crash in March 2020, I was really having inveesting nightmare prior touching base with a license portfolio-advisor. In a nutshell, i've accrued over $550k with the help of my advisor from an initial $120k investment thus far.

@leonarodwell

Жыл бұрын

@@MarthaDavis-fh6cw I'm sure the idea of a coach might sound generic or controversial to a few, but new study by investopedia found that demand for portfolio-coaches sky-rocketed by over 41.8% since the pandemic and based on firsthand encounter, I can say for certain their skillsets are topnotch, I've raised over $400k from an initially stagnant reserve of $150K all within 14months

@TiffanyLaos

Жыл бұрын

@@leonarodwell You are right! I diversified my $500K portfolio across various market with the guidance of an investment coach, I have been able to generate a little bit above $1m in net profit across high dividend yield stocks, ETF and equity during this red season in the market But the truth is that you cannot do that without a tested trading strategy

Man, these guys always impress me!

Completely agree with what WB and CM said. There's been no consequences for the bankers as a result of the bank failures so why would anything change?

two legends, wisdom overload. old school. spot on.

I agree with everything Buffet said. And I think the main reason why people panic and have little confidence in the banks has got more to do with how they have seen many other things that aren't in the interest of the American people and believed wouldn't ever happen, more recently, happen. It's that evolutionarily important thing called fear taking hold. It might not be rational or even helpful in this case but it's definitely relatable.

Putting well-earned money into the stock market can be over emphasized for first-time investors, unlike a bank where interest is sure thing! Well, basically times are uncertain, the market is out of control, and banks are gradually failing. I am working on a ballpark estimate of $5M for retirement, and I have a good 6-figure loaded up for this, could there be any opportunity for a boomer like me? I'm nearly 60.

@alexyoung3126

Жыл бұрын

Sincerely it's best to seek an advisor right now, unless you're canny yourself. As a business owner in both the service industry and eBay reseller of all product categories, I can tell you we’re in a deep recession and everyone is running out of money.

@joesphcu8975

Жыл бұрын

Very true, people downplay advisors role, until burnt by their mistakes. I remember just after my layoff early 2020 amidst covid outbreak, I needed to stay afloat, hence researched for license advisors. Thankfully, I came across someone of practical knowledge, and decades of experience, my stagnant reserve of $325K has yielded nearly $1m after subsequent investments so far.

@kimyoung8414

Жыл бұрын

@@joesphcu8975 Please how do i implore her services? Currently in dire need for some guidance.

@joesphcu8975

Жыл бұрын

My consultant is Helene Claire Johnson, She has since provide entry and exit points on the securities I focus on. You can look her up online if you care for supervision. I basically follow her trade pattern and haven’t regretted doing so

@kimyoung8414

Жыл бұрын

Impressive, i’ll most definitely check her out. I buy the idea of employing the services of a Financial Advisor because finding that balance between saving and living requires counsel.

The failure of Banks has torn into global markets, with investors ripping up their forecasts for further rises in interest rates and dumping bank stocks around the world. I'm at a crossroads deciding if to liquidate my dipping 200k stocck portfolio, what’s the best way to take advantage of this bear market?

@itzeltorreson

Жыл бұрын

The Banks situation is a reminder that Fed hikes are having an effect, even if the economy has held up so far,” It’s precisely at times like these that investors need to be on guard against the next certainty. You don’t have to act on every forecast, hence i will suggest you get yourself a financial-advisor

@aadenmarousek

Жыл бұрын

I agree, having a brokerage advisor for inveesting is genius! Amidst the financial crisis in 2008, I was really having inveesting nightmare prior touching base with a advisor. In a nutshell, i've accrued over $850k with the help of my advisor from an initial $120k investment.

@pamelamonarch

Жыл бұрын

that's impressive!, I could really use the expertise of this advisors , my portfolio has been down bad....who’s the person guiding you.

@aadenmarousek

Жыл бұрын

@@pamelamonarch credits to DEBORAH DIVITO WELCH, one of the best portfolio manager's out there. she's well known, you should look her up.

@vuhoahua

Жыл бұрын

Thank you for this tip. it was easy to find your coach. Did my due diligence on DEBORAH DIVITO WELCH before scheduling a phone call with her. She seems proficient considering her résumé.

I know these 2 men are rich - but they are good human beings with good values - G-d Bless.

These two gentlemen are amazing

Fantastic!

If you call yourself and investor. Or even trader. I hope your tuned in. You don’t get this close to the wealthiest men in the world. Buffet makes his money from consumer dollars. Every second of the day. Every hour. Every day. Every Week. Every Month. Every year. He makes money 24/7.

I learned two points here . 1) People should not be allowed to profit when they run a bank insolvent and they should be held accountable. 2) Banks should not be in the investment business. The problem I see is that there is no risk and great reward for stealing others people money by using lobbyists to bribe elected officials to make it all possible.

I don’t about you - but I am here to watch Charlie snacking 😂

To dumb it down for you, regional banks needs meaningful oversight. There shouldn’t be any runs on any banks because FDIC insures you anyway. Media is causing a panic.

@DanOneOne

Жыл бұрын

FDIC is only up to 250K. FED said they will not insure all deposits automatically only those they decide. So people have no choice but to get their deposits out.

@kathyleach3048

Жыл бұрын

​​@@DanOneOne Most people use multiple financial institutions, placing deposits of no more than $250k at each institution.

@fuckinghardhatready

Жыл бұрын

​@@kathyleach3048 That's over his head 😂

Never ever trust a bankman! - Sam Bankman-Fried

@1974dodgecharger

Жыл бұрын

You spelt his name wrong. It’s: Scam Bankrupt- Fraud

Gosh I love them I hope they live forever

@LlyleHunter

Жыл бұрын

I think we all do

Bankers (and depositors) throw caution to the wind when they believe the government will bail them out.

It takes a special kind of behavior to be genuinely likable while being richer than many countries in this context

It’s the same freaking story at every downturn. People keep criticizing but no one can provide strong policy solutions to these issue because 100% of the people who play this messed up game whether willingly or unwittingly want to play this game on the sole premise of being able to dream a way to get the riches!! It’s not the greed. It’s the aspirations and hope of everyone that are being fueled, rocketed up. And for some lucky, smart or crooked (however one wanted to categorize them) they are able to make it smooth and clear Which leaves the remaining wretched folks whose hopes have been dashed to the ground and they now need to look for the next time they can try their hand. It’s just a Gambling Ring - this whole world of finance!! And we should be smart to call it out as that. 😅

@DJ-mb3ew

Жыл бұрын

Gambling/, BINGO! no one that has determined it is just gambling wants to be the one to" change the rules in the middle of the game", that what would make it more difficult to recover what they have paid in time/ losses to learn that lesson . and us wretched folks just need to accept the excuse "life's not fair"

@robertagren9360

Жыл бұрын

Securities default and there's nothing that keep it from falling. A lot of securities were in example mortgages. These Securities is what prevent the entire stock market to default and shares dropping to zero. If you don't understand that the banks had none. Their securities defaulted which meant when the market started to test the truth, it was worse than expected. The market is in constant consolidation to prove the truth about the price. When banks runs for the bank that is when it all collapses.

@robertagren9360

Жыл бұрын

Some companies actually write down the secured value of the stock, Tesla as example is $1.28

@rayRay-pw6gz

Жыл бұрын

Senator Elizabeth Warren .

@PoKeKidMPK1

9 ай бұрын

​​@@robertagren9360 wtf is a secured value of a stock. tried googling that one and a bunch jargon comes up no matter what. the tesla example of $1.28 is what made your comment interesting.

Charlie as usual does the trick in a statement or two.

Hearing what Buffet saying, feels like he is in the same side with the federal reserve. Print more money and buy more bonds. Buy banks and banks, oil oil and more oil. At the end money printing isn’t going to bring more prosperity to America. Someone has to work and be productive and create goods and services. Wall Street and bankers wants to make money without actually having to work. It’s what they call “investing” the federal reserve just made it even easier for lazy people to get rich and rig the system which they created to benefit themselves. Destroying the middle classes and having more homeless people in the streets is not going to end well for this country and you can’t solve it by simply printing money and giving it away. Bank CEOs gets to have big bonuses and pay themselves right before the bank fails and gets away with it. While the fed bails them out.

I love how Charlie reiterates several times, this day, that there are too many people in wealth management in this country.

Banks are designed to fail but not allowed to.

I have no problem with bankers getting rich. The problem I have is when they start risking our money. On top of that their failures are insured by the government.

I love these guys

Charlie sums it up perfectly. Just look at how much money bankers spend on lobbying for even less rules. A sickening system.

As Glenn Close said, best 2 guys in comedy. They crack me up!

Now one not only has to worry about the potential of the banking system stalling, one also has to consider the possibility that treasury bills will not be paid back in a timely fashion upon maturity. Interesting times we live in.

Almost 200 years combined on stage. Age 92 and 99 respectively.

Charlie Munger is 99 years old, OMG.

My boy Charlie eating in peace. Love to see it.

Munger 👍❤️

Munger is always munching and we love it

Contradiction of values summed up the whole topic.

Legends

There is $128 BILLION in the FDIC fund. There is $19 TRILLION in bank deposit accounts. Let that soak in.

Mr. Buffett made so much money from playing with US banking system. He is disclosing that knowledge now after knowing that the game is over.

WB is telling us the truth. And, will Fed and DAs do anything about it?!

Buffett got it wrong on one account; Stock holders should be held accountable. You don’t support entities that are not managing well. If they make bad decisions and go bust that’s the risk. Stock holders being aware and pulling out is the checks and balances needed.

An understatement statement haha😊

What are "available for sale" and "held to maturity" supposed to mean in that context ?

@aimlesfez

Жыл бұрын

"Held to maturity": banks are sitting on unrealised losses which are not really losses if they hold to maturity. But giving the liquidity issues + flash bank runs they are forced to be sold to a buyer with a much stronger position. That's why "available to sale". Some banks are sitting ducks with illiquid 10y bonds when their customers want their money now.

Charlie munger is almost 100 wow

I believe individuals have come to the conclusion they can make more money keeping their money in anything other than a bank. Hell some people pay more money in bank fees than they'll ever make in interest.

Did anyone absorb what he said at 03:31 when he stated that politicians have an interest in keeping the banking policies "poor" of course not money wise but in disorder. To me that is the most telling aspect of this video.

Imagine anyone in the US administration speaking cogently for over eight minutes.

Knowledge is wealth

Didn't Charlie Munger and Warren Buffett invent the strategy of buying/investing when the market is low and also buying/investing when the market is high? As Warren Buffet said, he has seen this happen many times in his life. Not an investor. My wife and i never earned more than a middle class salary. We plan to get retired at 58 with a stock portfolio worth $4M. We have never sold so much as one share of stock...

@martingiavarini

10 ай бұрын

It really isn’t about how much you save, it’s about how you manage your money. Whether you work to earn income or invest, it still boils down to income vs expenses, so yeah you may look into financial advisors for a strategy that suits your timing....

@hermanramos7092

10 ай бұрын

i've been doing this same thing myself. Can't get into trouble with the IRS when I have no income and all my money is in stocks. I don't like doing the work though. Lol. So I just invest through an advisor who does the stock picking. My money grows, and I'm tax-free...

@bob.weaver72

10 ай бұрын

Do you mind sharing info on the adviser who assisted you? been saving for pension since age 18 - company scheme. along the way I hit higher tax, so I added to my company pension with a SIPP (tax benefits) I'm 46 now and would love to grow my finance more aggressively, there are a few cars I still wish to drive, a few mega holidays, etc

@martingiavarini

10 ай бұрын

Have you heard of‘’Catherine Morrison Evans’’ ? She gets featured regularly on CNBC. I myself use tax-deferred accounts to hold my investments. That way I avoid capital gains taxes. There are other options your advisor could brief you about....

@bob.weaver72

10 ай бұрын

Thank you. I just checked her out now and I've sent an email. I hope she gets back to me soon. I've been thinking of doing this for a long time now, and I've procrastinated enough already.

I love these guys. The Kiss (Keep it simple stupid) principles employed by them are just simple common sense

Even Buffet doesnt have his money in the bank. Eye opening.

Not even a live stream and still can't mute a mic while someone is eating directly into it. CNBC is on that ASMR.

You heard it here folks

Charlie is always chowing down on that candy

Singaporean!!!!

And companies like Berkshire Hathaway who are equally all about profit for shareholders lead to great things? The hypocrisy.

I came to ecommerce and real estate online in 1992. I had no money from them. My real estate online was implemented and used illegally. It is not AOL, Yahoo, Google, Bing's real estate online. Most likely, those who were programming, used illegal papers of my ex wife, looks like I allow. I never did. So illegal papers were used for real estate online.

In discussing First Republic, Buffett truly seems to believe that American business culture will spontaneously decide to punish executive malfeasance en masse. Why would anyone who's paid any attention recently believe that to be the case? Maybe a few will have their feet put to the fire given the scale of the shock. Maybe.

The repeal of glass-steagall in 1999 is what led to all these bank problems.

@kelleychilton2524

8 ай бұрын

YES, you are exactly correct!!! That's it in a nutshell. We don't hear enough about that, but that is the single act that set the stage for the 2008/09 financial crisis. It is still haunting us to this day and will continue to do so. Glass-Steagall was put in place in 1933 for a very good reason and by the late 1990s the narrative was that it had become obsolete. This was also during the dotcom boom where we were told that traditional/historical valuations of companies had become obsolete, which set the stage for the dotcom bust of 2000/01. People have short memories, but there is a reason that these old laws and principles were put into place.

@inertiaforce7846

8 ай бұрын

@@kelleychilton2524 I agree. People weren't stupid in 1933, they knew what they were doing. 90 years later and it's still not outdated.

What a riot these two are

They have more money than we can imagine and at this age they are still shearing their knowledge..like they could be doing anything

😂 loving this guy

Charlie has finished his breakfast, lunch and dinner everything on stage itself 😂😂

@christophermwanilwa7074

Жыл бұрын

😂😂😂

"The incentives were all wrong." Think about that for a moment.

The bank executives often are fired by FDIC which is appropriate

Jesus, get these guys some oxygen.

@tomnguyen9931

Жыл бұрын

They are in their late 80s and early 90s. I doubt you can be like them in your 30s. They are sharp as a person can be, which is very sharp.

@SanDiegoisnice

Жыл бұрын

​@@tomnguyen9931 Buffett can't say a complete sentence without stopping to breathe a few times. Munger seems like he doesn't have more than a sentence or two to say about anything. They are legends but it's time to hand over to the next men up

@MeEsmeralda11

Жыл бұрын

Have respect

@kelleychilton2524

8 ай бұрын

They're very old men. You'll most likely be pushing up daisies before you're their ages.

You're right about being held accountable mr. Buffett but too bad nobody was accountable for the 2008 crash except for Bernie Madoff but that's only because he still rich people's money all the rest of us had to suffer

Charlie drove me crazy with the 1 second bite, 2 seconds down, and 1 second bite. Can you just hold the cookie until you eat it all?

The message to banks is in your face. AFS and HTM. Letting the banks know they screwed up quite a bit .

I want a munger t shirt

At 8.40 I thought Charlie had some peanut brittle stuck in his teeth

Charlie is always snacking, lol!

Ol comrade Munger at it again

Its time to calculate how to measure performance of these businessmen

Warren does tend to waffle doesn’t he, Charlie gets to the point quickly.

RIP to one of the 🐐’s

People should stop using banks end the banks guys!

Please people do the effort and compare Berkshire performance over the past years with any well known big listed corporation in this world. Berkshire trails behind in most cases in big way. Just, therefore, what is so special with them other than having frenzy annual shareholder meetings comparable to the likes of Herbalife sales conferences.

@Psychout26

Жыл бұрын

Now try 40 years

@Markusableitinger1

Жыл бұрын

The investment world is not so your thing, hm?

when banking is squeezing its lending policy requirement, the stock market, the startups, and home mortgage in america is not as hot hot as it is now for the last 20 years will complete wipe out. because its of loosing banking easy money lending makes most americans financially happy.

Sounds like a Singaporean

Greedy bankers trying to become the next billionaire is all the banks have.

Gosh it’s hard listening to these guys

Amazing to see Munger at 99 with such a sharp mind. He should be cloned!

Banks are in the business of Money making money from money and from nothing else and for them to grow, they must make more and more money from money to pay for the staff, buildings, offices, rates, heating, shareholders, bomuses etc etc. It is reckoned that for every $10 saved in a bank, only 50c remins in the bank...The other $9.50 has been spent by the bank for lending out and investing...JUST TO MAKE MORE MONEY FROM MONEY. Since 2008 the banks have been showered with money....FREE MONEY at ZERO% int. rate to the tune of over $20TRILLION and you know what, THEY HAVE SPENT THE LOT. Bank failures is not uncommon and no doubt there will be a clear out. BUT for the Government to guarantee ALL SAVINGS, gives the banks carte blanche to spend and spend. Really we are heading towards a GLOBAL DEPRESSION caused by GREEDY BANKS and IRRESPONSIBLE GOVERNMENTS who are only interested in themselves and not interested in the NATION.

Fixing the banks is easy. Deregulate 100%. It’s that simple. The honest, prudent banks will thrive and the rest will go out of business. An honest bank in this internet era can post transactions in real time so everyone can see how they’re doing. Without account numbers and names etc. but if they start doing foolish things money will start flowing OUT immediately.

Guy beside warrens blood sugars are low

CNBC should stop showing Charlie when he is eating.

Charlie is quite hungry today

banks are really bond funds. Their fractional reserve system is wrong because bank promises to return all deposits any time, but in reality can only return some 10% of them. So it's always 10%+$1 away from bankruptcy. I think they shouldn't promise things they can't deliver.

I dont think its grewt having Berkshire trying to get rich either but whatevs

Charlie don’t give 2 F’s. I think he’s funny.

Banks are insidious.

And on who's money does the FED (or any equivalent central banking entity) provide the insurance from? Because if its from the printer then that is just equivalent from stealing from everyone in the world who owns that currency to give it to the insurance. And that will include even the person seeking the insurance. Eventually even that mechanism will reach a point of failure by devaluing the currency so much that the insurance is irrelevant. I don't know if you have noticed, it was not only 1 bank that failed, its been several. And for all of them, the reason they failed was that they are allowed to loan infinite money that they don't own in a perfectly legal way (try doing that yourself), so that when even a 1% fraction of their clients ask for their money back the bank is not able to fulfill their obligations. The problem runs much, much deeper than mere need for oversight.

@sandworm9528

Жыл бұрын

Inflation is the price you pay for stability. Without the insurance of the FDIC it would be a disaster. The inflation caused by FDIC payouts is insignificant compared to govt spending on military, which is similarly a price paid for stability. If you don't care about stability maybe you should start with the military

@rodrigoserafim8834

Жыл бұрын

@@sandworm9528 Point taken about the military. Indeed there are costs that are reasonable to pay for stability. However I disagree that unbounded inflation is one of them. Not easy to explain without a bit of nuance, so I'm sorry for the wall of text: This is the same kind of reasoning that led to the use of the Black-Sholes equation as some magical infinite stability engine, that would ultimately lead to the implosion of LTCM in 1998. They used the same logic to justify exponential usage of the derivatives market (the stock equivalent to printing money that does not exist) to play the Black-Scholes assumption of market random walk. They interpreted the losses as a mere bump in the road and that the market would inevitable return to the mean. The failure came because LTCM itself became such an influential player in the very market they were playing for stability that their actions became the engine of instability itself. You see, the Black-Sholes interpretation that you can just insure short term risk with long term derivatives (like inflation) is just a wrong application of the formula, and it does not lead to long term stability, instead it leads to large sudden crashes. This happens because the world does not perform a pure random walk, when there is a systemic problem it does not go away just by throwing funny money at it and waiting for the storm to pass. The FDIC fund itself is not the problem. I have no problem in insurances existing for funds and the people owning those funds pooling together the cost of that insurance. What I do have a problem with is the usage of a mechanism that steals from everyone, rich, poor, investor and non-investor alike, regardless of their involvement, to give it to someone else that they had no involvement with, because of a management mistake they had no participation in. This just sets up a systemic set of wrong incentives that leads to the complete irresponsibility of money managers. That will lead to long term erosion of trust in market agents, and that will lead to lack of trust in currency, which value is solely predicated on the trust that other market agents play fairly with it.