How Money Works

Banking is Broken (And We May Not Be Able to Fix It) - How Money Works
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Banking has become too complicated and too concentrated for it's own good and this could have serious impacts on us all.
#Banking #Finance #HowMoneyWorks
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Link To The Capitalists Discord where I hang out with other creators - https://discord.gg/8MeNJ7gfSR
Music by Epidemic Sound
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Banking is an incredibly important industry which is based off a very simple concept.
People with more money than they know what to do with can keep it in a safe secure institution which can then lend that money out to people who have big idea’s but not enough money to make them happen.
They give a small incentive to the depositors, and charge a higher premium from the borrowers, making a profit for the service that they provide as a “financial intermediary”
This system has become more complex over time with things like fractional reserve banking, and alternative capital sources, but if we strip all of that away we will still find that the heart of banking is this simple mechanism.
For all of the hate that banks get, they can do a lot of good in an economy. To people who want a safe place to keep their money they offer an almost 100% guarantee that the money left with them will still be there, a day, a month, a century from when it was deposited.
They also make that money readily accessible, online, over the phone, from a collection of ATM’s, or simply through a plastic debit card.
To people that want to borrow money they are also the “go to” institution for a fair loan based on lending parameters developed over time.
We may hate things like credit scores and employment checks, but it’s part of the reason why so many people are paying below 3% on their mortgages right now.
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Disclaimer: This podcast is an independently produced audio adaptation of content originally created by How Money Works. It was developed by a fan who values the channel’s clear and engaging approach to financial education, with the goal of making that knowledge more accessible in a hands-free, audio format. This is not an official production of How Money Works, and it is not affiliated with or endorsed by the channel. All rights to the original video content remain with How Money Works. For any concerns, inquiries, or content-related requests, please feel free to reach out.
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Keywords: financial independence, gig economy, inflation explained, mortgage crisis, stock market, money management
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Companies Do Not Care About Staff Loyalty (Anymore) - How Money Works
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How many people do you know that have been with their current employer for more than 10 years? Well according to the US Bureau of Labor Statistics it’s actually 29% of people, which sounds suspiciously high until you consider that a vast majority of this group are made up of workers on the verge of retirement, which is important to remember for later.
Amongst all workers in the US the median was just over 4 years.
In fact multiple studies have suggested that full time workers that stick with their employers for more than two years on average get paid FIFTY PERCENT LESS.
This is an unbelievably large gap, ESPECIALLY when you consider that the average of the loyal working group will be drastically inflated by senior executives and the c suite who tend to have more tenure. In plain English, for regular Joes like you or me, this 50% figure is likely understated.
So why aren’t companies stopping this? Surely having to pay tens of thousands of dollars to advertise a position, interview candidates, onboard new staff, train them and wait for them to get up to speed with their new role is not sustainable if it has to be done over and over again every 2 years… right?...
Well you would think so, but there are a few reasons why companies don’t care about employee loyalty… anymore…
#Career #Jobs #HowMoneyWorks
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Link to my vid on BS Jobs - https://youtu.be/uK3OBAxCi6k
Link to my vid on retirement - https://youtu.be/Q5sF0MbfVn8
Follow to learn How Money Works.
Find How Money Works on YouTube: https://www.youtube.com/@HowMoneyWorks
Disclaimer: This podcast is an independently produced audio adaptation of content originally created by How Money Works. It was developed by a fan who values the channel’s clear and engaging approach to financial education, with the goal of making that knowledge more accessible in a hands-free, audio format. This is not an official production of How Money Works, and it is not affiliated with or endorsed by the channel. All rights to the original video content remain with How Money Works. For any concerns, inquiries, or content-related requests, please feel free to reach out.
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Keywords: investment strategies, money management, financial news, personal finance, ai bubble
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Bernie Madoff's Ponzi Scheme Really Wasn't That Bad - How Money Works
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Bernie Madoff ran the largest Ponzi scheme in history, which at it’s height had an apparent 65 billion dollars in assets under management made up of investments by everybody from wall street billionaires to pension funds.
This all came crashing down in December of 2008, as the fraudulent businessman was arrested and subsequently charged to face over 100 years in prison, a sentence that he served up until his death last month.
But here is the thing, Bernie's fraud, was… not…that… bad…
In fact there is arguably more damaging behaviors taking place in the markets day in and day out today by some of the most revered businessmen in the world.
To understand this, it’s time to learn how money works by defending the indefensible and really understanding how Bernie Madoff ran his business.
So the basic function of a Ponzi scheme is that a legitimate looking operation is set up to attract investors looking to make a nice healthy return. Now this operation could theoretically purport to do anything…. Shipping, mining, manufacturing, but more often than not it is investing.
Why investing?
Because it is the most discrete… you see you will never actually perform any of the tasks that you claim you will to the investors and an investment firm doing nothing looks pretty much identical to an investment firm doing a lot, at least from the outside.
#BernieDidNothingWrong #Finance #HowMoneyWorks
Follow to learn How Money Works.
Find How Money Works on YouTube: https://www.youtube.com/@HowMoneyWorks
Disclaimer: This podcast is an independently produced audio adaptation of content originally created by How Money Works. It was developed by a fan who values the channel’s clear and engaging approach to financial education, with the goal of making that knowledge more accessible in a hands-free, audio format. This is not an official production of How Money Works, and it is not affiliated with or endorsed by the channel. All rights to the original video content remain with How Money Works. For any concerns, inquiries, or content-related requests, please feel free to reach out.
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Keywords: hedge funds, money management, financial education, stock market, wealth building, economics explained, inflation explained
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How Much Worse Can Home Prices Possibly Get?
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Find How Money Works on YouTube: https://www.youtube.com/@HowMoneyWorks
Disclaimer: This podcast is an independently produced audio adaptation of content originally created by How Money Works. It was developed by a fan who values the channel’s clear and engaging approach to financial education, with the goal of making that knowledge more accessible in a hands-free, audio format. This is not an official production of How Money Works, and it is not affiliated with or endorsed by the channel. All rights to the original video content remain with How Money Works. For any concerns, inquiries, or content-related requests, please feel free to reach out.
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Keywords: gig economy, financial planning, economic trends, financial literacy, investing basics
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Porsche is a Hedge Fund That (Sometimes) Makes Cars - How Money Works
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Link to the history video https://www.youtube.com/watch?v=FiR5hdXZv3A
When you think of Porsche you probably think of fast cars, and finance bros.
Porsche's are expensive but decidedly less flashy than their Italian rivals so they do well with the people that want an expensive sports car but don’t want to explain what they do for a living every time they stop t a gas station.
What you might not know is that Porsche and the finance bro’s that enjoy the fast cars they make have more than a producer customer relationship.
Porsche is itself, effectively an investment firm that happens to occasionally make cars on the side.
If you weren’t confused already, Porsche Automobiles is owned by the Volkswagen group, the company that makes the golf and the beetle, but the Volkswagen group, is owned, by Porsche.
You can also buy shares in Porsche, as well as Volkswagen because they are both public companies listed on the Frankfurt stock exchange, however, Volkswagen has announced plans to take Porsche public at the end of the year, even though it already is a public company.
This corporate mess is only where the weirdness begins, because besides making cars Porsche has investments in companies that make commercial 3D printers, laser systems, and satellite launch platforms.
#business #finance #howmoneyworks
Edited By: Andrew Gonzales
Music Courtesy of: Epidemic Sound
Select Footage Courtesy of: Getty Images
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All materials in these videos are for educational purposes only and fall within the guidelines of fair use. No copyright infringement intended. This video does not provide investment or financial advice of any kind.
Follow to learn How Money Works.
Find How Money Works on YouTube: https://www.youtube.com/@HowMoneyWorks
Disclaimer: This podcast is an independently produced audio adaptation of content originally created by How Money Works. It was developed by a fan who values the channel’s clear and engaging approach to financial education, with the goal of making that knowledge more accessible in a hands-free, audio format. This is not an official production of How Money Works, and it is not affiliated with or endorsed by the channel. All rights to the original video content remain with How Money Works. For any concerns, inquiries, or content-related requests, please feel free to reach out.
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Keywords: economic education, mortgage crisis, personal finance, debt crisis
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