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Only if the government bailout can cover the 97% loss in the end. Pluse some xmas bonuses to jp Morgan and goldman.

If all your loans are to a crypto traders or comersal mall realistate in 2019 then your bank would go upside down svg style, and in the banking world that dosnt mean anything becase government can always bail you out but you might not make any money and get bad press, so well leveraged loans at low risk means end of year profits.

Pretty much haha

I'm more of a free market type person, if I give you money to put it in your safe and you start loaning it out to other people I will stop giving you money to hold in your safe. Lol. Loans should be private imo, if you don't pay anyone back then your "credit"-bility goes down and you can never expect a big loan. If you always pay people back then everyone in your community can put money together if they want to give you a loan. If you don't pay people back they stop loaning to you and if you do then more of them loan to you. Life should be that straightforward.

@@evanstowers8529 Yes, yes, but what is with the interest ?

@@3rdworldtrillionaire46 I mean, people could charge interest if they wanted to.

just like the S&L that took out thousands of state banks. squeeze them out and take their assets

You sound informed, maybe you could answer this: 4:59 How, during the stress test, with only 50% load payback is that same bank responsible for injecting the economy with "the other 50%". Where does this come from? And, how does this decrease that bank's risk? Too me that seems to double the risk of that bank, though it is intended to stimulate a lagging "external" economy. What would happen in recession? Those banks are going to be in trouble. That seems like a way to break smaller banks.

​@@rebussleuth496 It's called Fractional Reserve Banking. When you deposit money into your bank account, the bank takes that money and 10x it (out of nothing) and then lends it out - ie: you deposit $2000, the bank can then lend out $20000 (that's not a typo). The 'stress test' per se, is on the whole $20k and not the $2k. So in this specific case above, they owe you $2k, and have 'injected' $18k into the economy through loans. This is evil and demonic. Why? Because they did not work for the $18k, they simply lent it and the borrower now has to work to pay interest on the loan. Banks literally create money out of nothing and lend it at interest to you, me, businesses, mortages etc. Think of this as a national level where the countries are forced to 'borrow' money from the central bank. Again, the central bank creates money out of nothing and can create and reduce as much as they want and lend it to governments at an interest rate - the governments then need to tax its citizens to pay back the central banks. To answer your question about smaller banks - the answer is: yes. The bigger banks will eat up the smaller banks when they begin to default. It is an evil system, because a small number of people control the amount of money is being created ie: $18k above, and thus control what they want. In the old days, it used to be based on Gold, because gold is limited - you can't create gold out of nothing, you need to mine it, refine it and store it. Bitcoin is popular because there is 21million bitcoins only, you can't create more bitcoins on a whim. Let me know if you got anymore questions dude

@@benyameenyitzhak1036 I am not presuming they are predatory and evil. But you have a system that needs to stimulate smaller economic entities, to in turn enhance the motivation to work and have a decent life. Of course in the natural world, the answer to starvation of some is to take from the plenty around them, in human society that plenty certainly does seem to be in the pockets of so few. Of course I am aware of fractional reserve banking. And the problems within it. But it is still important to follow their strategies and see where the error in logic is made, otherwise you are throwing stones at the castle walls. If you get smart and get into the details, maybe there are ways to tap into some better way of stable economic in roads. And, of course, digital currency, in as far as it is distributed across many many stake holders, is a better solution than the less widely distributed fiat currency holdings.

@@rebussleuth496 Fractional Reserve Banking is like a hot blonde with Aids. It's great at the start until reality sets in. The reason that crypto currency and gold are better is because it is limited. Any currency that can be created or destroyed is one that cannot live. No fiat currency has ever survived.

@@benyameenyitzhak1036 what do you happens June 28th?

Mario Luoni if they were experts the banking system wouldnt be bankrupt.

@@thethinkingman9338 We're probably not talking about the same experts ;)

@@sakuranooka , are you talking about the "experts" who are from "out of town" as per Mark Twain?

@@ccahill2322 Hmmm... maybe I'm talking about those coming from a parallel universe ;-)

@@sakuranooka , if you believe that Buffalo, New York or Hartford, Connecticut are in a parallel universe you may very well be right.

I think , the bank lends the money to corporate and the corporate use that money for their activity including expansion, transaction to their customer, etc. So the money came down to corporate sector and flow to other sectors or individual that have bussines relationship with that corporate. Correct me if Iam wrong

Net means profit over break even point on ongoing loans rite?

You shouldn't rate your own videos. In this video I am going to relate the A B Cs of banking; however, first I'll take you through the histories of the ancient Sumerian Alphabet. No. Bad narrator. 1) Define the rule. 2) Tell the audience how it affects banking. 3) Tell the audience how it affects them. Now, show the illustrations and caveats.

Not if you understand how the banking system 'actually' works. No such thing as 'lending'...

Yes but it’s entirely voluntary.

BCBS, do not have amy legal powers.

I hate the corruption and theft of central banks as Thomas jefferson, but without fractanal lending there wouldn't be no indoor plumbing. There just needs to be asset backing on desintrilized competitive lending to be sustainable. Cartels monopoly allagarks and futilisem lords always get to greedy and ruin it for the rest of us pessents aspiring to rize above our station.