Debt & Ownership

"And we've created this quite interesting set of financial outcomes where we've really, really rewarded people who took quite risky economic actions, which is to take on huge amounts of debt and to buy huge amounts of assets and take huge amounts of price risk but they have made money because prices have gone up."

UNDERSTAND, SHARE & PUSH BACK

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Performed by Gary Stevenson
@garyseconomics

Produced by Simran Mohan
@mohanmedia

TIMESTAMPS
00:00 - Snippet Introduction
00:23 - What is Debt?
04:16 - Who Owns the Debt?
08:58 - Debt is a Form of Ownership
14:00 - Who takes the Price Risk?
17:13 - Debt has Devalued
21:13 - Who Really Owns Things?

[shambhangal]

If we listened carefully, over the last couple of weeks we have realised that (a) the person creating the video footage is actually a dentist and (b) he's called Simran. He's probably a mate in the same block doing a favour (or at mates-rates) rather than an external and faceless hired production team. So, hats off Gary AND Simran for producing useful information in your own time!

[squadmeta]

I understand all of this stuff but struggle to explain it clearly to people, they usually just think I’ve lost my mind. You did a great job!

[occamseraser]

Call me naive, but I genuinely feel there's no agenda and little ego at work here, I feel like this isn't even really content creation persae, it's a person doing a genuine kindness for others and his main goal is sharing knowledge. Thank you Gary, subscribed.

[axishull]

Love how Gary uses analogy that people who took debt shorted the money market.

Love the final line, ‘but don’t worry because property prices always go up’

*except they don’t and if the population birth rate keeps falling we could have a situation with lots of empty houses and not enough buyers, right now it’s the opposite for in 20 years time it might be different causing the property market price crash.

One of the only content makers I won’t leave my sofa to make a cup of tea for. Wisdom.

[chrisclassical]

there is an unspoken hidden slavery aspect to this as well. in enforced slavery the slave owner tells the slave which field to work in. in debt slavery the debt owner just tells the slave to work, the slave get to choose how when and where to work, but work he must. so in essence our masters use debt to own us, hence the adage "beware he who has nothing to lose".

[phpART]

This is f-in genius. This is the best explanation, it’s a must watch to understand what money is!!

[MM-pbse]

Hahaha your last line the was killer blow 😂 I come from a corporate background working within the big4 as an auditor and have had a very similar background to you where you were raised in a working class set up! It’s music to the ears when you articulate yourself so well on the correlation between debt/money and it’s true ownership…and your doing a great job shedding light on it as most ordinary folks are selling their souls to the devil without actually realising that devil couldn’t give two shits if one defaulted on their repayments..

[falsificationism]

This is one of those things on my "if EVERYONE knew and internalized this, the world would change overnight" list.

VERY crisply explained, Gary. Thanks!

[mypointofview]

15:03. The real reason why people prefer to buy their own homes even though it means they will have to pay mortgages off over a long period of time is that once the mortgage has been paid off they own it. It means the cost of paying a large chunk of their money to someone else won't be part of their lives anymore. For someone who is retired it means they don't need to worry about giving up a chunk of their meagre pension to keep a roof over their head and heating in winter. It's security

[marcusdaniels]

Brilliant video.
Will need to watch a couple of times. Especially the 2nd half.
You said ordinary people probably think aliens control debt.
I think ordinary people think the banks have the money sitting there Gary. I used to think this before watching your videos. This stuff needs to be taught in schools.
Keep it up!!!

[phupinder]

Hello 👋🏽 Gary. I really like your educational videos. Coming from a science background I don’t know much about economics at all but am learning from your videos. Hope you have an amazing week 😊

[jonp]

This explains leverage, risk, price of money, asset ownership and more all in one video so I'm going to switch to recommending this rather than particular books for those who want to know this concept alone. Great stuff.

So, those who own assets with debt did well and continue to do well. Guess who else owns assets with debt, the government. They are using leverage to devalue their own debt by devaluing the currency through inflation. Difference is, they have the power to decide how much inflation. This is why I believe owning assets and having a healthy amount of debt therefore aligning yourself with the government is a good thing to do, doomsday everything goes wrong and you're the one with the risk considerations aside.

[jeffmiller]

The book, "Fooled by Randomness" explains quite a lot about the markets, success (or perceived success), debt, and most of all, "noise". Your videos are absolutely amazing, Gary! Thank you for your insights!

[ukdocs]

I first found out about you through your interview with James O’Brien.
Thank you so much for all of the absolutely amazing content you are providing. Everything you are talking about is exactly what I am fascinated, and you elaborated in the way a simpleton such as myself can understand. I’ve been on a small property journey, and it’s not been as lucrative as I thought it would, and this explains everything perfectly. I’ve even decided to take a house off the market and keep hold, hoping it will go up in the future. Regardless of anything, the education you are providing is 2nd to none and I really appreciate it. Keep it coming. Best regards, Henry from Norwich.

[danielcolman]

This is invaluable! Thanks Gary. You are arming those of us with an instinctive idea that something may be wrong but who lack the ability to articulate the chance to express ourselves mindfully. Legend

[zordledd]

Right, for me there are bigger differences between renting and mortgage payments then stated here. I understand the similarities but
1. Mortgage payments are finite, renting is until you are dead
2. If you are dead money can go to your children, which never happens if you only rent
3. Mortgage payments are for me fixed for 25 years, so I know what I will be paying the next 25 years. If I accumulate some extra cash, I can shorten the time that I pay rent. This can't be done with renting.

[AshleyMillsTube]

thats a really great way to put it that people who made money on house prices essentially shorted the spending power of the pound

[poshpaddy]

Irrespective of how much property prices increase, one house in Ealing is worth one house in Ealing. You are not getting wealthier if the value rises. You only see the benefit if you have more than one house in Ealing and even then if you sell it it's gone, you have the cash but you're unlikely to be getting another house in Ealing ever again.

[michaelburton]

Your channel is one of my new favourites. Keep up the good work, thanks

[MrMassivefavour]

I think people generally take on debt (mortgage) to own a house because A. Pensions don't allow you to rent when you're retired and B. You want something solid to bestow to your kids. This last reason however is coming to and end as we are being told we can only leave 14.5 k with the rest going toward our care.