@@SwissSareth they aren't pro-drugs, they say that drugs should be DECRIMINALISED ( which means you should be fined for taking them instead of going to jail ) and treating drugs as a psychological problem and this has been tried and tested in Portugal, and drug use has declined.
Well, they probably did do that. Alcohol might not be a hard drug, but it is a drug, and they've almost certainly drunk alcohol since the start of lockdown.
Now imagine we wouldn't need the laundering, companys would pay taxes on their drugs, production would be regulated and ensure safe work environments and clean products. Everything possible with the decriminalization of drug use for adults. And all of this without any downside because as we can see - people who want to do drugs are already getting them. The "War on Drugs" is one of the biggest mistakes in recent history and I didn't even talk about all the gang violence, mass incarceration and trillions of tax money wasted on this unwinnable war.
Portugal used to have the highest rates of addition and overdose deaths among teens in all of Europe; in 2001 they decriminalized all drugs and began trying to treat addiction like a public health issue rather than a criminal issue, and in every year since then, they have maintained a lower-than-EU-average rate of drug use and drug-related deaths. It's arguably one of the most successful pieces of drug legislation in the world
@@gloekgloek3046 only if the preventive measures stay as bad as they are... but with the billions from taxes and savings on prisons and police you could actually teach people responsibility and really help those who are susceptible für addiction. Decriminalization is the first step, but drugs will still be more dangerous on the black marked. Why do you think its better to keep the "hard drug" marked in the hand of criminals instead of licensed shops with educated salesman and regulations? Ps. I put "hard drugs" in quotes because alcohol is technically one of the hardest drugs but we already know it's better to sell them in stores compared to prohibition.
If anyone wants to know more about 2008 there is a great documentary called “Panic: The untold story of the 2008 financial crisis” that is really interesting and gives a deep look into what happened during said crisis
If a relatively small bank like Wachovia did this, then I would bet that larger ones did also...but regulatory agencies don't want to go after them due to the image it would project?
Excellent video. It's pretty well known amongst economists that all of Latin American is prompt up by drug money. 5% of GDP may not sound like a like, but it can make the difference. Remember the bailouts in 2008 where about that amount in the USA. Source: MIT Sloan 2019 paper “By those calculations, the total direct cost of crisis-related bailouts on a fair value basis was about $498 billion, which amounted to 3.5 percent of gross domestic product [of the USA] in 2009”
I'm ngl, this is the first I've heard about this but yet I do remember few years back reading up a online article about the threat of Italy's economical collapse and how the Mafia's involvement using dirty money was used to help the crisis but only since China's recent change from cash to digital raised my curiosity on the effects to the worlds drug trade is intrigued
You're trying to explain how drug money saved the economy in 2008, but I still don't know how the economy was "saved". The economy wasn't saved, that's what a recession is.
More than half of this video is about detailing the 2008 financial crisis - which was unnecessary. The remaining, lacklustre outline can be summarised as, "money laundering charges were dropped against a largely unknown bank; maybe things need to change", none of which answers the question posed in the title.
Now I wonder, if hydrocarbons and narcotics both make up about 6% of global trade, what is the remaining 88% made up of? I'm sure that alcohol and other "legal" traded substances and services boost the global economy way more than drugs.
Well, actually the problem with MBS and CDOs was that there was little to no oversight over the rating agencies and the CDOs consisted of tranches. In the lower tranches huge amounts of BBB and BB MBSes, which deteriorated, because of bad oversight over the rating agencies. Then the banks also made derivatives on these CDOs. But pepole were no longer buying these morgages and they ended up owning a lot of these CDOs, because they clouldn't sell them. At the same time leverage in the investment banking industry went up to 50:1. So they were overleavered and they owned a teriblle asset class. The market for insuring morgages was 20 times bigger then the market for mortgages at at the end these products were spread throughout all the financial institutions. That is why the financial crisis was so terrible.
Essentially what happened is GREED. Bankers knew that a majority of people accepting these CDOs would never be able to afford repaying, taking their commissions and moving on to the next. What made it worse was when huge financial players like Fannie Mae, credit Suisse, etc. Decided they wanted more money and began to take side bets on the original loan on whether or not it would be repaid called a synthetic CDO. An original investment of 1 million could balloon into billions and that’s exactly what happened.
The multiplier effect will also gain more traction in an illicit market such as the drug trade due to the lack of tax payments. First thing I thought of but could be such a minimal amount it doesn’t matter.
I think this is a classic case of blowing things out of proportions in order to shock. Central banks and political decisions was what softened the blow. Also, the crisis was about confidence in the financial institutions in which liquid assets are helpful, but more important was governments taking on debt send guaranteeing the banks stabilities. So it's an entertaining idea, but drug money had little to do with saving anything.
A theory... but one that has been endorsed by former Executive Director of the United Nations Office on Drugs and Crime. Not an entity particularly likely to recognize it though.
The statements he made actually shows the failure of his department. He was on the leave when he made it. The Nicholas Cage thing is funny but a bit out of context, yeah, they often self-congratulate themselves between high level people, it's a sort of tradition they have.
This video had a lot of information about a topic I had no idea even existed! Still though I feel like this "theory" gave me more questions than answers. Like in what way does some bangers slinging dope in the streets exactly help the one percenters maintain their investment portfolios?
because those bangers need to launder that money in order to be able to spend it in legit markets where the DEA and IRS have their eyes and ears open. To do that they need a legit business to use as a front and bankers who will take deposits and commissions and not ask too many questions.
no, a theory is a framework of thought that can make qualitative and quantitative predictions of a given phenomenon. a hypothesis is a singular assumption that a theory might be based on.
Would this qualify as an argument against legalisation as a large enough illicit market acts quite nicely as a liquidity siphon when the ordure impacts the atmosphere redistribution device?
Not really. The negatives of prohibition in terms of gang violence, people turning to crime to fund addiction, mass incarceration etc outweigh the benefits, especially as you could still achieve most of the benefits with a legal and properly regulated drug market.
*No 1: Don't Only Hope On Government For Income,* *No 2: As An Individual Look For Different Self Income Not Only Waiting on Monthly Wages,* *No 3: Always Save The Little You Can And Think Of What To Do With It When It Become Good For Capital.* *It's 100% Good To Have Different Ways To Gain Income* *Because Government have failed us so therefore let's try and survive*
Oooo, looks like I caught this one early. Everyone who's not a bot in this thread, sign off! No one? How about, everyone who isn't part of a scam? Again, no one? What are the odds?
Central banks: $17+ trillion Drugs: estimated $350 billion Yeah, Mate I'm going with Central Banks on this one. I don't doubt there's more drug money in more places than most of us suspect but it didn't save the global economy.
Unlikely. Probably more like with the crisis going on a few ambitious people saw an opportunity to make some money, knowing that regulators would be under pressure to go easy on the banks during the crisis and politics goal at that time was to fix the problem before everyone loses their pension pots.
This is simply why we allow the cartels to pump drugs through the US. All politicians know it affects our economy but don’t want to risk not having it in our economy.
@@thyenergiser6852 I think it'd be nice, like medieval times, or colonial times. Wouldn't you say, it'd be nice and pastoral and bucolic, you wouldn't need to worry about nonsense like the federal reserve or recessions or the economy.
People are mistaken. Drug money became good for circulation not generation. It all goes back to the question we never got answered: where does money come from?
funny a friend of mine sold larg amouts of pot at that time 2008 lol i think it is true for the fact he sold 25000 in pot that year at least that is what he told me lol
If only there was something that could be done to take the liquidity out of violent cartels and at the same time ensure that this 6% of global trade can continue to provide its economic benefits, whilst at the same time taking load off the criminal system and placing drug addicts in the hands of medical professionals and not into the overloaded prison system where they find themselves locked up with drug dealers.... 🤔
Can I just say the description of the financial crisis' timing is a little misleading? I'm sure it wasn't intentional and I know edits probably can't be done at this point, but the phrasing makes it sound like the bundling of mortgage backed securities and subprime mortgages *started* in 2008. Just FYI for viewers, this is not the case. It started with deregulations a decade earlier, and the bubble burst in late 2007 if I remember correctly. The central tldr point that financialization caused the crash is still fair, but those risky investments didn't start in 2008. I'm sure it was just a misplaced sentence and that tldr didn't mean anything by it, though. Thanks! Just had to mention it.
I think it's safe to say massive drug proceeds have propped up (and lessened) EVERY financial crisis since at least the 17th century, it's all right there to see if you know what to look for. So, yeah, get high and save the world...I guess.
except this is a perfectly valid use of the word theory, just not the scientific definition. you do realise there are multiple definitions to the word theory right? maybe you should check that BEFORE commenting... it takes 2 seconds to type theory definition into google
@@kurosakiichigo7475 This video is directly referencing a journal article therefore it should be using the scientific definition. Do you not think using the word hypothesis was more suitable in this situation?
@@jimmy_james0007 My thoughts exactly. I don't mind ppl using "theory" when talking about casual hypotheses, but this kind of misuse is exactly the source of "Evolution is just a theory" argumentation.
I still dont get how a ,,product,, that doesnt contribute to the overall value of the world, keep the economy going and is a ,,vital,, part of it.........anyone care to explain plis?
Really? How could it be even possible to think something about this topic without further deeper investigation? No doubts it's an interesting theory but it still lacking in proofs and more facts to conclude something definite.
![BOWKYLION - วิงวอน (ex-change) [Official MV]](http://i.ytimg.com/vi/cLdnZWDaO-w/mqdefault.jpg)
I thought I was 'just' having a good time back in 2008 - turns out I was helping save the global economy ;)
Thank you for your support 👍
Based
😂😂😂
Looooooooooool
FBI Open The Door(Bam)
Paying off a court so you don't get charged with money laundering
🤡 world
A fantastic summary of the 2008 housing crisis! Hope this stays monetized
+ Drugs!
@@purpledevilr7463 Not to mention, Nicholas Cage!
One day ago
@@adam_da_2024_official Probably a Patreon supporter. They get to see non-breaking stories earlier.
Well, I did 'not see' that one coming
I literally just imagine you guys saying lockdown was hard so to keep ourselves entertained we took some drugs
They probably did, seeing how pro-drugs they are. :P
@@SwissSareth they aren't pro-drugs, they say that drugs should be DECRIMINALISED ( which means you should be fined for taking them instead of going to jail ) and treating drugs as a psychological problem and this has been tried and tested in Portugal, and drug use has declined.
@@philoslother4602 it was a joke brother.
even up to "binged on"... lol
Well, they probably did do that. Alcohol might not be a hard drug, but it is a drug, and they've almost certainly drunk alcohol since the start of lockdown.
I feel like this video did a better job of explaining how the housing bubble burst than it did answering the question that it posed in the title.
Classic clickbait
Gotta hit that ten minute mark
Now imagine we wouldn't need the laundering, companys would pay taxes on their drugs, production would be regulated and ensure safe work environments and clean products. Everything possible with the decriminalization of drug use for adults.
And all of this without any downside because as we can see - people who want to do drugs are already getting them.
The "War on Drugs" is one of the biggest mistakes in recent history and I didn't even talk about all the gang violence, mass incarceration and trillions of tax money wasted on this unwinnable war.
Portugal used to have the highest rates of addition and overdose deaths among teens in all of Europe; in 2001 they decriminalized all drugs and began trying to treat addiction like a public health issue rather than a criminal issue, and in every year since then, they have maintained a lower-than-EU-average rate of drug use and drug-related deaths. It's arguably one of the most successful pieces of drug legislation in the world
@@gloekgloek3046 only if the preventive measures stay as bad as they are... but with the billions from taxes and savings on prisons and police you could actually teach people responsibility and really help those who are susceptible für addiction.
Decriminalization is the first step, but drugs will still be more dangerous on the black marked. Why do you think its better to keep the "hard drug" marked in the hand of criminals instead of licensed shops with educated salesman and regulations?
Ps. I put "hard drugs" in quotes because alcohol is technically one of the hardest drugs but we already know it's better to sell them in stores compared to prohibition.
Nichols Cage would definitely secure Justice for all
Nicholas Cage for President 2024?
Me: hey, Mexico is in TLDR video! Cool!
After finding out why Mexico is in a TLDR video: oh no 🤦🏽♂️
😂😂😂😂😂
- What's your job, Pa?
- It's very hard and important work, I'm saving a global economy.
If anyone wants to know more about 2008 there is a great documentary called “Panic: The untold story of the 2008 financial crisis” that is really interesting and gives a deep look into what happened during said crisis
That’s the one produced by Vice and published on the Council on Foreign Relations’ TH-cam channel, right?
@@bladfadsfblaadsfsadf900 correct! Although I believe it was produced by HBO and done by vice
Hey this is still monetized! Congrats on passing the controversy filter
How do you know? TH-cam places ads regardless right?
The best explanation of 2008 crisis. Love it.
My local provincial gov't balanced its books through unexpectedly high property transfer taxes.
If a relatively small bank like Wachovia did this, then I would bet that larger ones did also...but regulatory agencies don't want to go after them due to the image it would project?
Recession leads to mental depression, this makes people taking drugs, this leads to cash injection, in to the economy. This is the new economic cycle
But of course this is just a theory, a game theor... wait, what? Nevermind.
😂🤣
Now I understand what my teacher meant by saying "the real cartels are the banks".
ozark reference is the exact reason I found this video haha
Now this is content!
Extreme situations require extreme measures.National security will always prevail over law and order.
''0:32 Ozark is trash...' HOW DARE YOU SIR!
Ozark brought me here
I understood 15% of what was said in this video
Excellent video. It's pretty well known amongst economists that all of Latin American is prompt up by drug money. 5% of GDP may not sound like a like, but it can make the difference. Remember the bailouts in 2008 where about that amount in the USA. Source: MIT Sloan 2019 paper “By those calculations, the total direct cost of crisis-related bailouts on a fair value basis was about $498 billion, which amounted to 3.5 percent of gross domestic product [of the USA] in 2009”
Nice video, very simplistic and visual!
I'm ngl, this is the first I've heard about this but yet I do remember few years back reading up a online article about the threat of Italy's economical collapse and how the Mafia's involvement using dirty money was used to help the crisis
but only since China's recent change from cash to digital raised my curiosity on the effects to the worlds drug trade is intrigued
You're trying to explain how drug money saved the economy in 2008, but I still don't know how the economy was "saved". The economy wasn't saved, that's what a recession is.
Well how much worse would it have been if they drug money wasn't there to take the edge off
There's a difference between a recession and a depression. The latter is worse.
Roberto Saviano Zero zero zero is an excellent book on this topic.
I like the added flair the new animator is bringing, but please tell them about easing in & out!
I went to prison during the recession in 08 had to sell drugs to support my family we had nothing smh I paid with a lot of time for trying to eat
More than half of this video is about detailing the 2008 financial crisis - which was unnecessary. The remaining, lacklustre outline can be summarised as, "money laundering charges were dropped against a largely unknown bank; maybe things need to change", none of which answers the question posed in the title.
Money & Macro: "Hé, this is my topic".
I imagine.
Wah-cove-E-ah is the correct pronunciation just FYI
Hell it might save the 2020 recession
Now I wonder, if hydrocarbons and narcotics both make up about 6% of global trade, what is the remaining 88% made up of? I'm sure that alcohol and other "legal" traded substances and services boost the global economy way more than drugs.
Most credit card debt is unsecured
Woah woah, don't insult our Lord Nic Cage
Well, actually the problem with MBS and CDOs was that there was little to no oversight over the rating agencies and the CDOs consisted of tranches. In the lower tranches huge amounts of BBB and BB MBSes, which deteriorated, because of bad oversight over the rating agencies. Then the banks also made derivatives on these CDOs. But pepole were no longer buying these morgages and they ended up owning a lot of these CDOs, because they clouldn't sell them. At the same time leverage in the investment banking industry went up to 50:1. So they were overleavered and they owned a teriblle asset class. The market for insuring morgages was 20 times bigger then the market for mortgages at at the end these products were spread throughout all the financial institutions. That is why the financial crisis was so terrible.
Essentially what happened is GREED. Bankers knew that a majority of people accepting these CDOs would never be able to afford repaying, taking their commissions and moving on to the next. What made it worse was when huge financial players like Fannie Mae, credit Suisse, etc. Decided they wanted more money and began to take side bets on the original loan on whether or not it would be repaid called a synthetic CDO. An original investment of 1 million could balloon into billions and that’s exactly what happened.
The multiplier effect will also gain more traction in an illicit market such as the drug trade due to the lack of tax payments. First thing I thought of but could be such a minimal amount it doesn’t matter.
If it save the economy then it saves the economy, c’mon guys, let’s help the economy.
It's not a theory, it's a hypothesis!
I think this is a classic case of blowing things out of proportions in order to shock. Central banks and political decisions was what softened the blow. Also, the crisis was about confidence in the financial institutions in which liquid assets are helpful, but more important was governments taking on debt send guaranteeing the banks stabilities. So it's an entertaining idea, but drug money had little to do with saving anything.
Theory? Well those that know, know...
Thanks for a great video!!
Lovely video!
A theory... but one that has been endorsed by former Executive Director of the United Nations Office on Drugs and Crime. Not an entity particularly likely to recognize it though.
The statements he made actually shows the failure of his department. He was on the leave when he made it. The Nicholas Cage thing is funny but a bit out of context, yeah, they often self-congratulate themselves between high level people, it's a sort of tradition they have.
Nice video m8's
Maybe we didn't come up with the best economic system?
If this theory is true it further proves that capitalism is reaching its limits
You should read "Zero Zero Zero" by Roberto Saviano. It's all about cocaine and organised crime, and it talks about the money laundering of HSBC.
No worries, plenty of ads during the video. :-/
This video had a lot of information about a topic I had no idea even existed! Still though I feel like this "theory" gave me more questions than answers. Like in what way does some bangers slinging dope in the streets exactly help the one percenters maintain their investment portfolios?
because those bangers need to launder that money in order to be able to spend it in legit markets where the DEA and IRS have their eyes and ears open. To do that they need a legit business to use as a front and bankers who will take deposits and commissions and not ask too many questions.
@@mrdisco99 So like mutualism?
Could this have any relationship to weed becoming legal in the USA but not on a federal level?
Good shout it's highly possible
They always say follow the money 💰
0:32 The blasphemy in calling Ozark trash! 🤣
Is Ozark trash?
I didnt watch so idk
@@milosm9280 it's elite TV final season soon to come out
I love Jason Batman.
@@LEThavFUNnSMILE is the crown meh?
Remember to thank your local dealer
Wasn't looking for a summary of the 2008 crisis and 30s of actual content...
A “theory” is an hypothesis which has passed peer review.
no, a theory is a framework of thought that can make qualitative and quantitative predictions of a given phenomenon. a hypothesis is a singular assumption that a theory might be based on.
@@ichanmich
Sure
In any case, not as suggested by the video
Guess what type of wholesalers didn't close over the lockdown...
if you haven't , spin off the housing crisis example as it is the best one i have seen so far
You know the Executive Intelligence Review was founded by Lyndon LaRouche?
Make a video on Suisse bank .
Would this qualify as an argument against legalisation as a large enough illicit market acts quite nicely as a liquidity siphon when the ordure impacts the atmosphere redistribution device?
Not really. The negatives of prohibition in terms of gang violence, people turning to crime to fund addiction, mass incarceration etc outweigh the benefits, especially as you could still achieve most of the benefits with a legal and properly regulated drug market.
Got an ad on the video 👍🏿
Reuters is the last news source to bash someone in making outlandish claims lol
*No 1: Don't Only Hope On Government For Income,*
*No 2: As An Individual Look For Different Self Income Not Only Waiting on Monthly Wages,*
*No 3: Always Save The Little You Can And Think Of What To Do With It When It Become Good For Capital.*
*It's 100% Good To Have Different Ways To Gain Income*
*Because Government have failed us so therefore let's try and survive*
@Brie Lancanshaire Bitcoin trading might make you rich if you are hedge found with deep pockets or an unusually skilled currency trader
@Roman Hart I heard his strategies are really good and wise too I will have my first trade with him soon
Oooo, looks like I caught this one early. Everyone who's not a bot in this thread, sign off!
No one? How about, everyone who isn't part of a scam?
Again, no one? What are the odds?
Central banks: $17+ trillion
Drugs: estimated $350 billion
Yeah, Mate I'm going with Central Banks on this one. I don't doubt there's more drug money in more places than most of us suspect but it didn't save the global economy.
Unlikely. Probably more like with the crisis going on a few ambitious people saw an opportunity to make some money, knowing that regulators would be under pressure to go easy on the banks during the crisis and politics goal at that time was to fix the problem before everyone loses their pension pots.
Want to be better on TLDR global
what movie is that kid speaking from?
The bankers giveth and the bankers taketh away.
“Itching for” I see what you did there 👀
This is simply why we allow the cartels to pump drugs through the US. All politicians know it affects our economy but don’t want to risk not having it in our economy.
0:53 I'd rather live in a world of perpetual recession if it meant that there were no drugs or cartels to "prop up big banks"
I wouldnt
@@thyenergiser6852 I think it'd be nice, like medieval times, or colonial times. Wouldn't you say, it'd be nice and pastoral and bucolic, you wouldn't need to worry about nonsense like the federal reserve or recessions or the economy.
You should use the word hypothesis instead of theory
WE NEVER RECOVERED FROM 2008
People are mistaken. Drug money became good for circulation not generation. It all goes back to the question we never got answered: where does money come from?
Now I get why they’re pushing so hard to legalize marijuana
funny a friend of mine sold larg amouts of pot at that time 2008 lol i think it is true for the fact he sold 25000 in pot that year at least that is what he told me lol
If only there was something that could be done to take the liquidity out of violent cartels and at the same time ensure that this 6% of global trade can continue to provide its economic benefits, whilst at the same time taking load off the criminal system and placing drug addicts in the hands of medical professionals and not into the overloaded prison system where they find themselves locked up with drug dealers.... 🤔
Here because of Noah from Ozarks lol 😂
Drug money comes in @ 5:50
But have you watched the expanse?
*crack*pot theory…I get it
So, house owners spending their money on drugs instead of the mortgage were doing the right thing?
Can I just say the description of the financial crisis' timing is a little misleading? I'm sure it wasn't intentional and I know edits probably can't be done at this point, but the phrasing makes it sound like the bundling of mortgage backed securities and subprime mortgages *started* in 2008.
Just FYI for viewers, this is not the case. It started with deregulations a decade earlier, and the bubble burst in late 2007 if I remember correctly.
The central tldr point that financialization caused the crash is still fair, but those risky investments didn't start in 2008.
I'm sure it was just a misplaced sentence and that tldr didn't mean anything by it, though.
Thanks! Just had to mention it.
(Great video though)
WTF 8:00 ACTUALLY LOOKS LIKE MY PHONE SAMSUNG GALAXY S9 LOLOL
So, what is the answer?
Guess who’s back?
I think it's safe to say massive drug proceeds have propped up (and lessened) EVERY financial crisis since at least the 17th century, it's all right there to see if you know what to look for. So, yeah, get high and save the world...I guess.
The misuse of the word "theory" (every single time, it's a hypothesis) in this video drives me up the fucking wall
except this is a perfectly valid use of the word theory, just not the scientific definition. you do realise there are multiple definitions to the word theory right? maybe you should check that BEFORE commenting... it takes 2 seconds to type theory definition into google
@@kurosakiichigo7475 This video is directly referencing a journal article therefore it should be using the scientific definition. Do you not think using the word hypothesis was more suitable in this situation?
@@jimmy_james0007 My thoughts exactly. I don't mind ppl using "theory" when talking about casual hypotheses, but this kind of misuse is exactly the source of "Evolution is just a theory" argumentation.
System of a down anyone, prison song
Yes
Big takeaway: do more drugs!
I still dont get how a ,,product,, that doesnt contribute to the overall value of the world, keep the economy going and is a ,,vital,, part of it.........anyone care to explain plis?
Its not about DRUGS its about US free Market shit!
I generally like your explanations, but the CDO explanation was not entirely correct. Left out credit tranching and the risk waterfall.
Saved bank's asses
Really? How could it be even possible to think something about this topic without further deeper investigation? No doubts it's an interesting theory but it still lacking in proofs and more facts to conclude something definite.
Hey which state won the best flag