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

Жыл бұрын

Yes!

@benjaminruiz7850

Жыл бұрын

Amen to that!

@randyriverolarevalo2263

Жыл бұрын

then if you are poor, and the government pays you for that, you can´t get money for work anymore?

@nikolaievans2432

Жыл бұрын

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

Жыл бұрын

@@nikolaievans2432 You want people to starve to death?

That "The Big Short" outro though in the end 👌- great stuff, Johnny.

@captainhawk1697

Жыл бұрын

YESS I laughed out at the Irony🤣

@tiffany.Elizabeth.

Жыл бұрын

It was perfect

@xtrachrisb488

Жыл бұрын

They won't blame themselves, that's for sure

@NakedAvanger

Жыл бұрын

oh no its this guy....

@gravitydefeater

Жыл бұрын

love your channel btw

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

Жыл бұрын

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

Жыл бұрын

@@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

Жыл бұрын

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

Жыл бұрын

@@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

Жыл бұрын

@@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

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

5 ай бұрын

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.

@MANinDEBT

18 күн бұрын

I agree, the products are safe but they give a very low return. The problem is the age of maturity, in these cases up to 10 years. So when SVB wanted to sell these they couldn't get all their money back because you could buy “new” bonds with higher returns for the same price. I have a video on my channel explaining this. No one wanted the bonds SVB was holding so they dropped in value and SVB had to sell them anyway when customers were withdrawing their money.

Appreciate the quality of your content

@zeenatzaidi5387

Жыл бұрын

Good

@chathuraprasanga4900

Жыл бұрын

Good

@nishatanwani6460

Жыл бұрын

That's indeed very true...the bank is liable to pay back..

@kajaldey6891

Жыл бұрын

Nice

@TheWunder

Жыл бұрын

I love him more

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

Жыл бұрын

They also tell us to have a 6 month emergency fund while they empty all our bank accounts

@boxie13

Жыл бұрын

Not just Bad decisions. Negligent decisions with Our money.

@Seth-mu3wo

Жыл бұрын

They also get a huge bonus when they make poor decisions.

@mike496

Жыл бұрын

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

Жыл бұрын

@@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.

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.

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

Жыл бұрын

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

Жыл бұрын

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

Жыл бұрын

@@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.

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

Жыл бұрын

not just shareholders were left out, the debt holders were also left for loss

@monhi64

Жыл бұрын

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 KZread videos about the crisis are exacerbating things. Like at the end of the day these KZreadrs 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

Жыл бұрын

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

Жыл бұрын

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

Жыл бұрын

@@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.

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

Жыл бұрын

You're awesome too ya know :D

@mihinsumaria

Жыл бұрын

What is this, a crossover episode?

@saylolcool

Жыл бұрын

Your videos are just as good Cleo!

@gideon4942

Жыл бұрын

I hope he's not overworking his team

@dronedreams777

Жыл бұрын

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.

Thank you so much for your high quality content, is fun, engaging genuine and easy to chew. Keep up the hard work!

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

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

Жыл бұрын

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

Жыл бұрын

This was the opposite in America

@donakidder3424

Жыл бұрын

They also gave jail time to those bankers that were guilty of misappropriation.

@andreschavez9671

Жыл бұрын

Meanwhile the ones in the states get a slap on the hand and senior management gets new jobs at new banks

@powresitta

Жыл бұрын

Dont forget ragulation

Didn't Iceland let banks fail, and actually sought to prosecute the bankers? Would've been nice to hear about that approach

@G0N0X

Жыл бұрын

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

Жыл бұрын

same with politicians

@motog-rocks6544

Жыл бұрын

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

Жыл бұрын

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

Жыл бұрын

@@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?

Thanks a lot for gathering all of the information and giving it a historical informative background.

@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.

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

Жыл бұрын

Yeah not gonna happen

@y4ip2288

Жыл бұрын

Another trump supporter caught 😌

@gamaltk

Жыл бұрын

My thoughts exactly

@tomlxyz

Жыл бұрын

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

Жыл бұрын

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.

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

Жыл бұрын

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

Жыл бұрын

Be careful what you ask for. Every law has an unintended consequence.

@1crazypj

Жыл бұрын

@@rafaeltorre1643 Undoubtedly, but, if these people had any morals above making more money for themselves it wouldn't be an issue.

@newagain9964

Жыл бұрын

That still doesn’t solve the problem. And Doesn’t solve any problem. Is thats an impotent attempt at class warfare.

Johnny, your video production and explanations are top-tier. Well done, Sir!

Awesome job at getting this video out so quick! 👏

I've had economics classes in college and I swear you explain many concepts way better than my professors did

@afilaka123

Жыл бұрын

You are absolutely right👍

@bamboosho0t

Жыл бұрын

Most college professors don’t teach you how to learn, they just teach you a portion of *what* THEY learned.

@dominic2123

Жыл бұрын

Professors are generally hired due to their knowledge and pedigree, not how well they teach

@molomomo3743

Жыл бұрын

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.

Worst thing is that nobody will be held accountable for this mess and all previous ones.

@krakken-

Жыл бұрын

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

Жыл бұрын

And, like the Catholic Church with problem priests, the perpetrators will just shuffle around from one institution to another.

@frankie5373

Жыл бұрын

That would be antisemitic

@mathemat3939

Жыл бұрын

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

Жыл бұрын

Well I'm sure there will be bonuses for those responsible

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

8 ай бұрын

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.

the quality of your vids is just top notch. keep it up

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

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

Жыл бұрын

His political slant is obvious when you can see the passive aggressive nature of his words. Hardly neutral.

@TheStickman419

Жыл бұрын

@@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

Жыл бұрын

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

Жыл бұрын

@@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

Жыл бұрын

His video would 190 degrees if a republican was in office. So many little details are "off"

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... ❤

Your topic selection top tier!

Financial services continually demand deregulation, cut corners, get in trouble, and demand a bail out. NO.

@TheStickman419

Жыл бұрын

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

Жыл бұрын

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

Жыл бұрын

@@James-gm9cs If everyone weren't so corrupt maybe this could work.

@philipberthiaume2314

Жыл бұрын

@@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

Жыл бұрын

@@ZachBobBob exactly. Too many of these systems rely on good faith which we all know is impossible

Thank you for explaining such a complicated topic and helping us make more sense of it!

@TheStickman419

Жыл бұрын

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

Жыл бұрын

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

Жыл бұрын

You're welcome!

@phlezktravels

Жыл бұрын

​@@koikoi5520 "did necessarily did"

@braidena1633

Жыл бұрын

@@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.

Glad i watched your video. You explained it simply and well.

Your visualization of concepts makes viewers smarter. Wish I had this in my college days. Maybe my next lifetime. 🙏🏼

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

Жыл бұрын

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

Жыл бұрын

​@@newagain9964 govt needs to intervene constantly or else capitalism destroys all our lives and the entire living world.

@One.Zero.One101

Жыл бұрын

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

Жыл бұрын

@@One.Zero.One101 the government does have unlimited money though, the problem is just inflation if they create lots of money to bail out banks.

@lolitsajoke77

10 ай бұрын

@@One.Zero.One101when you bail them out the Gov eats the loss when you don’t you eat it.

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

Жыл бұрын

You're probably not gonna believe a random KZread 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

Жыл бұрын

Ha same

@alexalex66666

Жыл бұрын

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

Жыл бұрын

@@alexalex66666 What do you expect from sheep that think they aren't sheep? I am a sheep.

@SKULLCLASSMEDIATV

Жыл бұрын

damn now ill step my game up for my next video on this

Good job with the spreadsheet, i was never understood the multiply factor until now!

As always this is an EXCELLENT video, Johnny!

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

Жыл бұрын

So infinite loan money with no reserve, that's not going to cause a problem in the future, riiiiiiighhtt???

@eddykaye8217

Жыл бұрын

@@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

Жыл бұрын

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

Жыл бұрын

This is not true, we have the highest reserve ratio in the world.

@deacom8528

Жыл бұрын

@@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

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

Жыл бұрын

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

Жыл бұрын

I’m gonna be that guy, I watched the 2hour documentary by PBS about this “easy money policies” and I didn’t understand anything. KZread then recommended this video the next day lol

@blufox7760

Жыл бұрын

@@Bee-tj8gc to avoid losing value in hard earned money to inflation

@Ninjaeule97

Жыл бұрын

@@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

Жыл бұрын

@@just4interest996 Coldfusion did a good explainer, too. Well worth a watch.

very educational brother, thank you.. always a fan of ur work👍

Awesome video, Johnny! Good job.

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

Жыл бұрын

Ain't lyin

@TheStickman419

Жыл бұрын

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

Жыл бұрын

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

Banking industry is still as corrupt and inefficient as managing customer funds as ever, not a shock.

@Neptunestef

Жыл бұрын

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

Жыл бұрын

​@@Neptunestef propose a system without crisis cycles

@camwatlington

Жыл бұрын

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

Жыл бұрын

@@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

Жыл бұрын

​@@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.

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

Жыл бұрын

Bitcoin

@katmannsson

Жыл бұрын

@@HoneybeeHollowGardens trading one fiat currency for an even more obtuse fiat currency is not the answer.

Johnny, your video production and explanations are top-tier. Well done, Sir!. Johnny, your video production and explanations are top-tier. Well done, Sir!.

It's amazing how this guy keeps making these great videos at this tempo.. Keep it coming!

@KL-tn1xc

Жыл бұрын

He's not alone, there's a whole team working on his videos. Gotta credit them too.

@hmq9052

Жыл бұрын

He's a drama queen

@Didnt_ask69

Жыл бұрын

Nobody cares

@thecapatalistpropagator_9470

Жыл бұрын

He is Woke liberal with work views

@N3therWolf

Жыл бұрын

@@Didnt_ask69 obviously you do. Since you have commented multiple edgy dumb comments on this channel. 🤡 Clown

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

Жыл бұрын

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

Жыл бұрын

@@AndorranStairway Can you provide a source for that? Now I'm not sure who to believe.

@sutro-311

Жыл бұрын

@@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

Жыл бұрын

@@Guru_1092 The source: m.kzread.info/dash/bejne/ZZOgo8RxnZyzoKw.html

@briannaghey-hw7hj

Жыл бұрын

Not a single mention of the banks donating millions to BLM and left wing foundations before their collapse.

Lovely video!! Real question here is what kind of calendar is Johnny using on the background. It looks beautiful😍

Thank you so much for your video. It's easy to understand and remember

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

Жыл бұрын

Its because our entire system is a house of cards.

@Lunarcorp

Жыл бұрын

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

Жыл бұрын

Hold on to your shorts when Credit Suisse goes under.

@lorenataft7074

Жыл бұрын

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

Жыл бұрын

That panic is why the Federal reserve exist in the first place.

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

Жыл бұрын

Excellent comment.

@imsohandsome

Жыл бұрын

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

Жыл бұрын

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

Жыл бұрын

Yeah this was mentioned in the WSJ video.

Very well explained...plz make more videos related to the finance world and economy

Thank you for your excellent reporting

Massive respect for getting such a polished video out so quickly.

*_"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

Жыл бұрын

Amazing quote!

@Crimin4L

Жыл бұрын

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

Жыл бұрын

Bro it’s too late for that in California, anyone who financed or refinanced after 2008 owns a lien not land.

@augustuslxiii

Жыл бұрын

@@Bombstark Too bad they're bullshit quotes. Jefferson never said those things.

@augustuslxiii

Жыл бұрын

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.

Great video informative, entertaining and too the point good job 👍

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! 🙌🏼

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.

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

Жыл бұрын

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. #KZread

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

I work in finance - you did a great job summarizing this at an approachable level.

Always learning something new with your videos 🙌🏼

@joshfunder6247

Жыл бұрын

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

Жыл бұрын

Say something about Silicon Valley edit : thank you for one like

@joshfunder6247

Жыл бұрын

Also his opinion that “we have nothing to worry about” is about the dumbest shit I’ve ever heard.

@barnabuskorrum4004

Жыл бұрын

Did it teach you to join communism??? These collapses do NOT HAVE to happen

@yvonneplant9434

Жыл бұрын

But everyone should know what banks do. It's nothing new.

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

Жыл бұрын

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

Жыл бұрын

Exactly

Please do a video about embassies and consulates and the mystery that shrouds them. Also, which country has the most and where are they NOT present? Which countries have few embassies but were selected very strategically? Would LOVE to see the team’s deep dive on this and what it unfurls.

Waiting for banning TikTok.

@KunalSharma-gk6oi

Ай бұрын

It's done buddy 🎉

@KunalSharma-gk6oi

Ай бұрын

It's done buddy 🎉

The fact that this is still legal somehow is astounding. Great video as always Johnny!

@moneymanifestation9505

Жыл бұрын

Why would it be illegal? This is how banking is done 😂the fact people actually give money to a blatant scam should be illegal. Anyone that dumb doesn't need to be amongst society 🤦🏾‍♂️

@Korilian13

Жыл бұрын

What's the alternative though? You can't finance your house unless you saved up the full amount? You can't replace your broken oven to keep your business going? And don't say the government can help, because their money is just as imaginary.

@newagain9964

Жыл бұрын

@@Korilian13credit institutions aren’t bad (coops, credit unions, and dare i say it a public bank). But Our banking structure is bad.Very bad. Funnels $ to the wealthy.

@jonathanodude6660

Жыл бұрын

@@newagain9964 how do you think those credit institutions work? did you see what just happened to credit suisse? it got bought. by a bank. credit institutions are a mirage.

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

Жыл бұрын

Not sure the Federal Government raises rates I thinks it's the Federal Reserve.

Thank you for such a great video!

Thanks Johnny. Love the video

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

Жыл бұрын

Not that long if you have a team of editors lol

How nice of the bank executives to pay themselves a bunch of bonuses for all the hard work they've done to run it ... into the ground

@andreasp3700

Жыл бұрын

this is the worst comment i have ever read. it just irks me for some reason. so cringe

@mikemike6182

Жыл бұрын

and get bailed by gov when they failed, ez $

@TheSecondVersion

Жыл бұрын

How nice of them to give us a small cut of the profits they made from using *our* money

@SomeGuyNamedTex

Жыл бұрын

​@@andreasp3700 As is your reply... How ironic.

@pharag4886

Жыл бұрын

All the banks are doing it. Your money isn't safe. Even if the banksters don't steal it, inflation will.

The Bonds SVB held were safe but they gave a very low return. The problem was the age of maturity, in these cases up to 10 years. So when SVB wanted to sell these they couldn't get all their money back because you could buy “new” bonds with higher returns for the same price. I have a video on my channel explaining this. No one wanted the bonds SVB was holding so they dropped in value and SVB had to sell them anyway when customers were withdrawing their money.

I was just looking to kill time but I learned something. Good video, as usual. Thanks Johnny.

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

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

Жыл бұрын

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

Жыл бұрын

@@luckas221a i get it both pros and cons, and atleast they won't crash

@halfvolley11

Жыл бұрын

Public banks are the worst. Try banking in India. Many of them don't even have computers.

@dineshp2833

Жыл бұрын

They treat you like trash. That is why I prefer private banks.

@Kanfachan

Жыл бұрын

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.

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.

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!

Privatize the gains, socialize the losses. Government for the rich.

@Julianna.Domina

12 күн бұрын

Time to nationalize everything

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

Жыл бұрын

Just like the new Central Bank Digital Currency (CBDC) rolling out this year.

@sendthis9480

Жыл бұрын

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.

Damn, this was like a movie. Thank you very much for explaining!

I always know it’s a Jonny Harris video when I hear a sigh and the same walk over to the desk and sit down

Props to you for making an amazing video in record time! People need to hear this stuff!

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

Жыл бұрын

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

Жыл бұрын

u just said it urself, they recieved bonuses in the past, they recieved it now and will recieve in the future

@neolithictransitrevolution427

Жыл бұрын

The CEO also sold stock a week before. And whereas most bank exec stock sales are declared months in advance this was not.

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.

Thank you for explaining ❤

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!

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

Жыл бұрын

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

Жыл бұрын

Information communications are so bad at schools

Keep up the good content!! Please make one about BRICS

5:39 But we should worry instead. If the newly created money (the debt) is invested into proper uses that come back to its population is good, but today _most_ of that money is generated and used into speculative markets like real estate, luxurious tax-evasion/launderay arts and items, financial cdo schemes, shorting, pump and dump schemes, etc. Also given the $ 250K insurance is insured against public money/debt itself, while the "badly invested" money goes straight into a few individual pockets, you ought to understand that's a really fine line between having a great economy because you're competing on technology and well-being (against USSR) and slowly declining into pure speculative and socialized losses (now).

"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

Жыл бұрын

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

Johnny always the man to explain everything in layman terms for common folks to digest, keep up the good work !

@NazriB

Жыл бұрын

Lies again? Bang Bros Dallas Bull S**t

@noel7777noel

Жыл бұрын

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

Жыл бұрын

​@@noel7777noel thank you!

@SecondTake123

Жыл бұрын

This video is very inaccurate! Watch "97% Owned" on KZread!

Wow never seen such a great breakdown about our economic system.

Love the ending, really sharing how you feel without actually saying it. Well done

@markmakallister4653

Жыл бұрын

This video was made for children.

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

Жыл бұрын

Johnny's videos are way to dynamic and entertaining to miss.

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

Жыл бұрын

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

Жыл бұрын

@@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.

Loved the Big Short ending clip to that video, so true 👍

Losing the hat and scarf and whatever winter accessories, is a great move! 👍

Diversify.... This is the key to success. If the banks main source of money was businesses which rely on a good economy, it's almost inevitable that when the economy is doing bad, so will the banks. They need to make sure that they attract clients from all areas of society to keep a well balanced portfolio.

An interesting fact is that the CEO of Silicon Valley Bank sits on the board of Federal Reserve Bank of San Francisco. The solution seems obvious, require higher reserve limits for banks. If currently 10%, why not 30 or 40% or even 100%. But moves like this get blocked by the federal reserve because it would essentially reduce their level of control over the economy

@stachowi

Жыл бұрын

Nothing will happen to him, he will just laugh at the plebs

Thanks for the video sir

For the first time, I understood how the bank works so well. Thanks Johnny.