Banking Explained – Money and Credit

Banks are a riddle wrapped up in an enigma. We all kind of know that they do stuff with money we don’t understand, while the last crisis left a feeling of deep mistrust and confusion. We try to shed a bit of light onto the banking system. Why were banks invented, why did they cause the last crisis and are there alternatives?

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[kurzgesagt]

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[thanos]

"A banker is a fellow who lends you his umbrella when the sun is shining and wants it back the minute it begins to rain"

[hunterlehman]

If that is the simplified version, I don't wanna imagine the real version

[RosadorcasSladeWiggins]

just sold a property in Washington DC and I'm thinking to put the cash in stocks, I know everyone is saying its ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $200k gains with months, I'm really just confused at this point.

[HugoBergmann-lund]

Personally, I think investors will start to seek more market diversification. can i confidently invest about $350k into the financial markets in 2024? I'm still not sure how rates will effect the market just yet, which worries me a lot.

[kurzgesagt]

IMPORTANT ANNOUNCEMENT: This was a video sponsored by the lovely (and patient!) folks at PSCU, thanks again for the support! What does this mean? It means that we got funding for doing this topic sooner than we would have done otherwise – the sponsor had no influence over the content of the video! This video represents our own research and opinion on the topic. This video is a bonus video, on top of our regular uploads.
The reason I’m posting this here is that we want to be super up front and honest about sponsorships — we do want to make videos that entertain you and that help make the world a little bit more awesome. But it is impossible to sustain ourselves with the youtube channel – we are too many people and the videos take too long to produce. So we will do sponsorships to make this Youtube channel more sustainable from time to time. How is this gonna work: Sponsors can pay us to do certain topics, or to have their project features at the end of the video (like the audible adds lots of STEM channels do). But the scripts will not be approved by a sponsor. Everything we tell you is researched by us. We are in the explaining stuff business, not in the advertisement business (well, ok, you can hire us to produce a video – but it won’t go up on our youtube channel). 

[darnellcapriccioso]

The financial sector and derivatives may have a Hindenburg moment if the US Treasury market collapses. Rising market illiquidity in the $14.8 trillion U.S. Treasury market, according to Bank of America, might affect other financial markets.

[NicholasBall]

I'm deeply concerned about the current banking situation. The thought of a bank as large as SVB failing worries me greatly. A close friend who manages a rapidly expanding startup experienced significant setbacks due to a recent bank run. As a precaution, I've withdrawn over $840, 000 from my bank. However, with FDIC coverage limited to $250, 000, I'm aware that a potential collapse could have serious repercussions. Given these circumstances, I'm considering investing in the stock market. Any suggestions on how I should proceed?

[thatonenoob]

"You don't rob a bank. The bank robs you" -Some guy, probably

[SamuelDurkin]

The explanation of bank lending is wrong.. banks lend more far far more money than they have on deposit. It's called fractional reserve banking. Essentially when you take a loan out, most of the money you get is created out of thin air, and it's your promise to pay it back with interest that brings it into existence. This is of course gives banks huge power.

[sayanmitra]

Nowdays Quantum physics seems more understanding than banking °~°

[justrifky]

The first sentence "The international banking system is an enigma.” that is it, that is all you need you need to know

[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?

[waddup]

I didnt understand shit but the animations are so cool

[VR_Wizard]

You forgot an important detail. Banks don't have to collect the money of their customers they can lend money they don't even possess.

[RichardMoore-jgtl]

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?

[gensis]

Once again the visualisations in this episode are astonishing! For every phrase said, there is a great picture shown and therefore even such a complex matter like banks is easily comprehensive. Thanks a lot and keep on the great work!

[petersmythe]

"What are you doing?"
"I'm listening a German guy talk about international bankers."
...
"NOT LIKE THAT!"

[emanuelezamboni]

The soundtrack is awesome. It has a recurring theme that changes based on the mood of the video

[Killuavii]

"Give a man a gun and he can rob a bank, but give a man a bank, and he can rob the world"