How Banks Work

Ever wondered how banks actually work?

00:00 - Intro
00:49 - History Of Banking
05:16 - The Gold Standard
08:10 - Fractional Reserve Banking
11:58 - Types Of Banks

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[lawrencedyke]

I'm really concerned about the current bank situation, especially with a major bank like SVB failing. A friend's startup was severely impacted by the bank run. I've withdrawn over $640k, as the FDIC only covers up to $150k. I want to invest in the stock market—any advice on how to proceed?

[DarnaRosales]

for the past six months, i've been trading bitcoin independently but have been facing losses. can anyone provide a guidanceon how to achieve profiability

[Raymondjohn]

It is a government inspired crisis this time. The Treasury have to sell Bonds to cover the trade imbalance and the government spending imbalance. In order to sell them they have to raise interest rates and the old long-term, low risk, low interest, AAA investments (including Treasury Bonds), held by the banks (often due to government regulatory policy), become next to worthless. The next milestone is the 15th when the government issue a new batch of Bonds. I have approximately 350k stagnant in my portfolio that needs growth. What is the best way to take advantage of this downturn?

[AveryFossen]

Since Biden took office, there seem to have been more unfavorable results in America. I am really worried about the current bank crisis/interest rates, these are all the signs of yet another 2008 market crash 2.0, so my question is do I still save in the United States dollar or is this a good time to buy gold?

[AlexandraWilliam-rjyc]

I wasn't financially free until my 40’s and I’m still in my 40’s, bought my third house already, earn on a monthly through passive income and got 4 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start today regardless your age, invest and change your future! Investing in the financial markets is a grand choice I made. Great video! Thanks for sharing! Very inspiring! I love this.

[loveelpierre]

I watched the whole thing to see if y’all would mention that we’re no longer on the Fractional Reserve System, but instead on an Infinite Reserve System, wherein banks are no longer required to hold a portion of the deposits to lend out, and how they also changed savings accounts to be viewed as essentially checking accounts. Maybe make another video about those changes that were made in the last few years?

[Rochelletrem]

The banking 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. First SVB, then signature bank and now first republic bank, these are all the signs of yet another 2008 market crash 2.0

[Riggsnic_co]

About the current bank situation, I'm really concerned. I am worried about a lot more if a bank the size of SVB may fail. I have a friend who manages a fast-growing startup and was severely impacted by the bank run. I have taken more than $840k out of my bank. Since the FDIC only provides coverage up to $250K, an implosion could have negative consequences. presently want to invest in the stock market. Does anyone have any ideas on how I might proceed?

[EmerleeGorman]

This video does an excellent job breaking down the complex world of banking in a clear and accessible way. Understanding how banks work is crucial for managing our finances effectively, and this video provides valuable insights for viewers of all levels of knowledge. From explaining the basics of deposits and loans to diving into more intricate concepts like fractional reserve banking, it's a comprehensive guide that demystifies the banking system. Whether you're a novice looking to learn the fundamentals or someone seeking a deeper understanding of financial institutions, this video is definitely worth a watch!

[andersonwhiteman]

Most people venture into crypto to be a millionaire meanwhile I just want to be debt free

[Global_Rankings_]

It's my first time on this channel and I'm honestly very satisfied with how you put all of this together, as I had trouble understanding as a very young man and this is gonna help me for sure and I'm definitely gonna watch this again.
So thank you!

[lindapoplin]

When you invest you're buying a day you don't have to work

[jonathanquinone]

Proud Pinoy here! Since 2018 Alux lng sakalam!!

[cruzchristiana]

It feels good to see the market in green, but just how long until we actually break even, I’m the average retail trader, DCA-ing, buying and holding on to stocks for eons, but it’s like I’m up 5% today and down 17% the next week, Yes the market is very Darwinian, there’s winners and losers, and it’s looking like I’ve been on a losing streak, while others make huge 6figure gains in the same market. What strategies are these folks using?

[johnkh]

If interest rate hikes keep there will be more bail outs.

Thru Alux advice, I finished twice "how banking system works" at Coursera.Soon will start for third time.Thanks Alux 🎉❤

[u.s.]

Are there some books I can read so when bank CEO's like Jamie Dimon, the Fed Reserve Chairman or Christine Lagarde speak I understand what they are talking about and what they actually do? It all still goes over my head even after reading thick books about JPMorgan(The House of Morgan by Ron Chernow) and Goldman Sachs(The Partnership: The Making of Goldman Sachs). Thank you for this summary.

[carlajones]

I don't think they'll "open up" at least anytime soon but we can certainly open up by taking advantage of the financial education that's so abundantly offered to us. ❤

[Scapital]

You guys did an excellent job putting this video together. Thanks

[larryrhodes]

Great video! I still recall watching “it’s a wonderful life” in grade school. It was shown as a Christmas movie during the holidays, but could’ve been a great education moment for young kids at that time. Seems everything old is new again these days.

[ayebarephillipable]

In coming years banks will have to shift towards the trending trends because today it's not only about keeping your money seated on the account but how best is it accumulating interest a service investment trust funds are capitalizing on. Otherwise thank you for the educative content