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 …


34 thoughts on “Banking Explained – Money and Credit”

  1. Yes, this is a very simplified version, you forgot one very important thing, right now if you deposit your money the bank don’t give your any interest for that money, many year ago they do, but today is only on some specific accounts, not all the bank accounts and the give very, very, very low interest as profit and is not worthy.

    And the second important thing on how the money and the banks works is the fractionally reserves, now the banks can give you as mucha credit as they want with interest, if they keep in the bank at lest 1% of all the money they borrow. This is very detailed information in the government to the banks documents. That is why when you put your money in the bank the maximum money you have covered is $250k, if your have more than that money is not covered in case the bank go in bankruptcy.

  2. Banks rob the societies from their wealth by issuing more money into the system daily. Its called inflation, and what it does basically is that the goods around you get more expensive faster than the rate the salaries are growing. Also, you wanna know one of their dirty little secret? Search what ''fractional reserve banking'' is, and if you don't think that is fraud then I don't know what else to say

  3. actually, banks lend out money not based on people savings but based on the promise that the people pay back the loan. The banks are in general only required to have 10% savings relative to the amount of loans they have on their books.

  4. Hi kurzgesagt, this video was one of the first I watched on YouTube around 4 years ago. I've been subscribed to this channel since about an year now, and i just found out that you made this video. I remember this being highly helpful and I'm sure everyone would love it if you could make an updated one including the corona crisis and crypto currency.

  5. 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?

  6. Banks and corporations created this mess are still out there making another one but get bailouts after bailouts while ordinary people get punished for that and have to face consequences.

  7. Banks and money isn't needed at all. All you need is will power. Money was created for 2 reasons.
    1. Establish rank in society
    2. Control the people.

  8. The video is awesome, the history has not been presented as it should be, in the 11th century Europe was plagued with the dark ages, while Spain under the Muslim rulers was one the most advanced, rich and powerful countries. Ppl from cross the Europe come to Spain to learn knowledge, wisdom and business. You have not mentioned that in the video, instead you said it was Italy, in reality that was divided into different states.

  9. I never thought I would ever make $1m in my life but using Johan Pedersen's strategy on trading has made this possible. I urge everyone to take advantage of this strategy and stop watching so many indicators and being scared of the dip

  10. This is a great video, I learn alot watching your videos and it has been helpful to me. Trading crypto is quite difficult for newbies. Thanks to Mrs. Megan Tracey for improving my portfolio,keep up with the good videos.

  11. Give me a break. Money is created when someone gets a a bank loan. Then poof! You have a piece of paper called a check or your bank acount goes up. It is all fake. To pay them back you have to work.

  12. What actually happened after the 2008 banking crisis, was that the little guy got wiped out. Meanwhile, the rich all consolidated their assets and got many times richer. And here we are. All of us poorer. And the Banks are still in business, still paying themselves massive bonuses. And actually the answer is to nationalise the banks so that they have to work for us, rather than their shareholders and bosses.

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