The Collapse Of Greensill Explained
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- เผยแพร่เมื่อ 30 ก.ย. 2024
- For those following the world of finance you may have come across this story unravelling over the last week.
The billion dollar company Greensill has collapsed rapidly over the last few weeks - and in this video, I attempt to explain why, and why you shouldn’t put all your eggs in one basket, as Greensill did.
#greensill #gupta #creditsuisse #softbank #finance #business
This...sounds exactly like the MBS packaging and securitization of 2008, for those who have been around
Yup. The mitigation of risk associated with the invoice by Greensil reminded me of MBS and the big banks
Same shit, different finance company. It’s Groundhog Day. Will it eve end?!
@@Dogboy73 Rinse and repeat.
I’m a former Greensill employee (company made us all redundant last Friday), found this video quite spot on and accurate 👍🏽
Thank you. Sorry to hear that, wish you the best for the future. 👍🏽
@@KINGCADEMY thanks. Tbh the working culture was awful and this was a common opinion, trust me it’s definitely a blessing in disguise.
@@Tdk619 damn straight.
So your telling us that their was a culture of bullying and that Lex isn't the nice guy as portrayed in the corporate videos
@@michaellee9975 Lex actually did come across as some that did seem to care a lot about the company and people. Unfortunately he hired a lot of terrible senior level management who made it a nightmare to work
I have seen a lot of coverage of Greensill, for example on FT, but couldn't find any good video explanation of who they were and what happened.
Well done, short but clear video explanation!
Thank you Andrea! Glad it helped.
Check out Patrick Boyle's channel as well.
Wait.. Gupta doesn't want to pay his debt? Or can't pay his debt? There's a big difference here.
I don't understand how he's not being dragged through the dirt here. Who in their right mind is going to lend him money after this?
Christ sake, so much of this echoes the 2008 subprime crap. Do people never learn?
Also, of course Softbank would be invested in Greensill. Does anyone else wonder if the investors at Softbank are being dumb or just incredibly unlucky? Maybe a bit of both.
Fantastic explanation! My moral of the story, and complex investment products in general is: Financial engineering has poisoned everything that it touches. People and societies need to get back to investing in real products and services with real-world value. You cannot create new money out of thin air, it can only be done with hard work and service to others. (Question: what software do you use to make those chalkboards?)
Thank you! Glad it helped. I use a mixture of Adobe Photoshop, Adobe After Effects, and Quicktime to put these vidoes together. :)
I'm 65 - so I relate to what you're saying. I worked (too) hard for years to earn my currency - Toffs in suits push figures from screen to screen and 'earn' millions..
Jesus Christ!! 4 billion in debt and it’s cool, yet the minute I don’t pay a £13 phone bill on time and 02’s like...bailiffs coming for ya bitch!!
I suppose if you’re going to owe money 💰/ OWE big money 💰
Ya wanker
Slicing and dicing debt and selling it on to gullible third parties.... all sounds a bit familiar circa 2007/08.
Great explanation, thank you very much! Didn’t really paid too much attention to this until now.
Reminds me of 2008, equity markets are all-time high, relatively small bank Bear Stearns goes under in March without too much notice.
Maybe we should take little bit of money off the table before music stops.
as 'tis said: better to be two months early - than five minuets too late
Nice video. 2021 was a great year for me since I started investing in the cryptocurrency market... I make really big profits in my investment when I started with 0.5 BTC and now...
I'll make 3.2 BTC.
Good job.. well done .. very clear .. The finance market is left completely unsupervised and this is the result... one man can bring a big company down by a sudden decision in the midst of a pandemic!!
Thank ou Riadh!
softbank have their finger in so many pies
Wow, this is really nice video 👍🏻
This deserves a million views
Too kind! 😅 Tnx
There is always just one main criminal in all these scams - the investment bank. If they decide on not being a scam facilitator most of these scams won't happen.
Seems like a lot of dodgy companies doing dodgy things...... nothing new there then
Looks like a Con Game to me!!
Thank you for explaining this to me. Bottomline is: there should be better regulation
You are very welcome Dutch Duke!
Regulation,neo liberalism and the free market don't make for very good bedfellows don't you know
you know what's up when credit suisse abandons you
Great video, I subscribed right away. Look forward to future vids. Thank you for your excellent work.
Thank you!
Years ago it was called factoring I always thought companies using this method of getting paid had cash flow problems! Basically verging on the insolvent!
Albert Einstein stated “Everything should be made as simple as possible, but no simpler.” Complex financial instruments are messy and dodgy!
Best and most concise explanation I've seen even if it's crazy.
Thank you!
This was great and very clear!!
Thank you!
Thanks you - Concise and clear video! I was wondering if there was any role of the credit rating agencies in the funds at all.
Easy to follow... even for viewers with no background in finance. Subscribed.
Thank you! Glad it helped.
hey, give your Son in Law my B'day regards too - and Kudos on your list of financial references - one more to offer you - and he's a friend of Lynettes - Mario - Maneco64. His knowledge is like an encyclopaedia. BTW - You're very easy on the eye
@@CosmicSeeker69 LOL... well thank you for that! And I am subscribed to Maneco (and his dog) as well. Thanks!
Isn’t this almost the same as what went during sa subprime mortgage crisis?Packaging loans(now invoices) then securitizing it.
A business plan doom to fail. 🤦♂️
Then a financial institution collapsed causing the world to suffer.
People never learn because of their greed. They thought their ideas were brilliant but in end it’s idiotic . 🤬
Every country should ban this kind of practice or business.
very nice video, worth the efforts. keep doing it.
Thank you kush!
how can GFC just not pay Greensill and get away with it, it seems dodgier than Greensill ever was?
Wondering this too
It certainly does and wondering this too. Lots is coming to light now about Gupta in the news.
Very well explained, I was looking for short and precise explanation for this issue and your video covered it all.
Glad it helped! Thanks
Thanks
Well done. I came across your explanation after starting to watch a 4CORNERS show on the topic.
Your explanation is short and sweet, well shorter and sweeter and clearer.
Thank you Karl D. Marx!
Great explanation for those who want to understand the whole Greensill saga. Thanks for this! Will Greensill downfall have any negative impact on the US stock market?
Thank you Maxizmer Lee! Glad it helps. I'm not sure the impact, if any, would be noticable. But let's see...
Blip on the radar, but however there real icebergs ahead.
Nice man, very interesting and clear. I just don't understand how GFC Alliance won't pay back their debt though.
Thanks John. I think its a mix of systemic cashflow failures within GFG Alliance which appears to be quite a fragmented organisation, as well as the non-desire to continue to work with Greensill in the long run due to revealing findings from the regulators about how Greensill operates.
Excellently explained
Thank you J I
Nice and easy explanation, subscribed for more! 👍
Thank you BRDMP!
Damn this video is straight to the point, but Greensill also lost of money due to this financial product "Future accounts receivable financing "
Sir can u plz make a video on this topic "Future accounts receivable financing " too
Thanks! Correct, this is part of the issue. Its disguising accounts receivable as the security for a loan, which can be very risky if accounts receivable is not received! Great idea will have a think and add it to the list...
@@KINGCADEMY this forms part of a allegation made by a Bluestone litigation case against Greensill (publicly available) which discusses how a short loans became a long term one. It also raised some dodgy practices that include introducing customer relations to GFG along with "how to roll the loans" from short term into long term ones.
Very easily explained, thank you! Keep up with these kind of videos!
Thanks!
What a stupid business model
Really good video. Clear succinct explanation!
Thank you River! Much appreciated.
great information
Sanjeev Gupta is CEO at GFG Alliance not GFC
Correct Rajesh, thank you. Slip of the tongue.
So the man of steel was working with super villain Lex
😂 😂 good one
Good informative video.
Gupta seems shady.
It could have worked fine, until where you wrote invoices in green, and it just went bad from there.
Great video! Would have loved a bit more explanation on the accounting methods used!
NicoleRW, thank you! Noted. An idea for a next video perhaps!
It used to be called creative accounting back in the day lol
Hey, great video. What did you use to edit your video / make your logo?
Hey Luke, glad you liked it. I used Photoshop and After Effects :)
Excellent work. Keep doing it.
Thank you Gary, much appreciated!
Definitely top notch quality content!
Thank you Alex, means a lot!
Great video, thanks
Pixiesforever7 - many thanks!
Perfectly explained
Thanks Tommy. :)
I am completely clueless when it comes to finance. This is the only video i can understand. Thanks
Glad you found it helpful! Thanks
People who can explain things well , understand the subject matter very well. Well done.
Thanks Mahesh.
Great video ! Succinct yet comprehensive. What platform did you create it with?
Thank you Darragh. I used Adobe Photoshop, Quicktime player, and Adobe After Effects.
Finally an intelligible explanation, thank you.
You are very welcome Peter
Factor.
Great video! Subscribed
Thank you Joseph!
This was really great. Good one!
Thanks Lalit!
Great video, I subscribed
Thank you Mitchell!