Paddy, what's your opinion on Public Banking within a free-market system? That seems to me like an inevitability once the current financial system has run its course.
Hey Paddy, nice work, the only problem or fallacy I see in your explanation about the yield curve in relation to banks is that banks don't have a great financial motive to loan because more than 80% of most major banks' profits are from trading (derivitive prop trading cds etc) You know, the things that wreck the markets/economy in the first place. Plus banks see the loans as not only not as profitable, but riskier given the job market and specific regs that went to far in the other direction
Well in one of your videos (bonds vs notes vs bills) I recollect you stating that bonds are generally long dated rather than notes. However in this video you state 30yr notes - are notes really so long dated ? Bit confused with the contradiction here.
vp technically yes, but i think he just uses the terms interchangeably. He shouldn’t but when u put the duration, people will know what you’re talking about.
Till now, I used to think that flattening of the curve means the short & long interest rates coming closer. Here I find a new outlook.Thanks Paddy. Investopedia draws the flat curve as totally flat - a straight line parallel to the maturity axis. However, your explanation seems more plausible because even here, the short & long rates are coming closer, implying the curve is flattening, though not necessarily flat. So, probably a flat curve is different from a curve flattening. Do you think the same Paddy?
Fed is out of options, we need to restructure the tax code, close the loopholes for corperations, increase tarriffs and require companies that sell 90% in the US to hire 90% in the US.
What baloney! @1:38 'As maturity extends, you tend to have to pay more'.. Really? Pay annually at a higher rate, you meant, surely, not that you 'pay more'! Yield curves can even be jumped or 'inverted'. So 'pay less as maturity rises'? You missed the critical point. It's the annual rate for different maturities, not paying more or less as it can show a dip too if future rates are expected to fall.
I know little of economy. I don't want to know anything about economy, because it involves the concept of "making money with (just) money", at which point my eyes glaze over and I start drooling. Nevertheless, I enjoy your explanations very much, learning some things about economy, needing a drink.
Hey Buddy, nowadays, I am pretty much drunk 24x7, jusht woke up this morning to get myself a beer ..hic! Operation twist sounds like we need to apply torsion to Heli Ben's cojones and finally maybe the cervix as well!
Excellent explanation! Last second was really funny ;)
I absolutely enjoy the way he teaches it....thank you
Its amazing that videos from the stone age still hold up.
These are excellent explanations, since watching many of them I'm getting the impression there's a lot of drunk economists these day! :D
the double pen toss!!
i didn't think that move was possible!!
#epic
Very often it’s leaving me very badly needing a drink 🤣
good explanation.
Really well explained. Thanks!!
Excellent explanation, let's hope things improve and get back to normal!
Whoa, here we go again 🎉🎉
Many thanks!
Paddy, what's your opinion on Public Banking within a free-market system? That seems to me like an inevitability once the current financial system has run its course.
Hey Paddy, nice work, the only problem or fallacy I see in your explanation about the yield curve in relation to banks is that banks don't have a great financial motive to loan because more than 80% of most major banks' profits are from trading (derivitive prop trading cds etc) You know, the things that wreck the markets/economy in the first place.
Plus banks see the loans as not only not as profitable, but riskier given the job market and specific regs that went to far in the other direction
great video!!!
Well in one of your videos (bonds vs notes vs bills) I recollect you stating that bonds are generally long dated rather than notes. However in this video you state 30yr notes - are notes really so long dated ? Bit confused with the contradiction here.
vp technically yes, but i think he just uses the terms interchangeably. He shouldn’t but when u put the duration, people will know what you’re talking about.
@@gbballpl agreed may be that is the case.
The Y Vertical axis is YIELD, NOT PRICE. Confusing the 2 is horrible.
Can you do an introduction to "Bootstrapping" video please?
Economy can be fun!!!
so true
awesome!!
Till now, I used to think that flattening of the curve means the short & long interest rates coming closer. Here I find a new outlook.Thanks Paddy. Investopedia draws the flat curve as totally flat - a straight line parallel to the maturity axis. However, your explanation seems more plausible because even here, the short & long rates are coming closer, implying the curve is flattening, though not necessarily flat. So, probably a flat curve is different from a curve flattening. Do you think the same Paddy?
I know I'm late to this but I've bee under the same assumption.. How does this not tighten yields between short and long-term?
Fed is out of options, we need to restructure the tax code, close the loopholes for corperations, increase tarriffs and require companies that sell 90% in the US to hire 90% in the US.
All I can say is I'm glad I'm not an alcoholic.!
What baloney! @1:38 'As maturity extends, you tend to have to pay more'..
Really? Pay annually at a higher rate, you meant, surely, not that you 'pay more'!
Yield curves can even be jumped or 'inverted'. So 'pay less as maturity rises'?
You missed the critical point. It's the annual rate for different maturities, not paying more or less as it can show a dip too if future rates are expected to fall.
thanks
To visualize yield curves
www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/Historic-Yield-Data-Visualization.aspx
I know little of economy. I don't want to know anything about economy, because it involves the concept of "making money with (just) money", at which point my eyes glaze over and I start drooling.
Nevertheless, I enjoy your explanations very much, learning some things about economy, needing a drink.
wait wait, this isn't about compression and Mohr's graphs?
Bravo
Hey Buddy, nowadays, I am pretty much drunk 24x7, jusht woke up this morning to get myself a beer ..hic!
Operation twist sounds like we need to apply torsion to Heli Ben's cojones and finally maybe the cervix as well!
everyone pray for the cameraman who is suffering from parkinsons disease
wow ben is a beauty
with subtitle would be better
Someone tell the cameraman to settle down
me too!
ha!
Worst cameraman in the world....still a nice explanatory video..
Inversion.