People fail for the same corrupt, capitalist tactics at credit unions as they do with regular banks. At least that happend here in germany. People have been short changed with their loans.They´re strong in suburban areas. Not neccesarily better through imo or how things are in US
This is so true. The difference between a bank and a credit union is that the CU is owned by people who have accounts there, and banks are privately owned. If a private company sells airplanes the purchaser gives that company money and receives a plane. Transaction done, no problem. The company then distributes money to the owner. Having deposit accounts is different. The financial institution needs to make money, loans are not the only way they do that, they charge fees. A banks goal, like the example above is to get money to the owners. So the customer brings their money to the bank, and leave it with, the promise that the bank will keep it safe. But the bank needs to get money to the owners. This is called a perverse incentive. The bank is incentivized to do the wrong thing. To get money away from those they promised to keep it safe and give it the owners. In a CU the owners are the people who have deposited money in accounts. It is less a private business and more of a club that provides a service. They do not have the incentive to take money away from the depositor and give it to the owner as they are the same people.
@@wackrapsatire In the US banks have fees for everything you do with them; their savings accounts will often be less than 1% interest; upon overdraft, they will charge you a penalty fee and a daily fee until you deposit more money. My CU lets me use ATMs for free, has a 5% interest account, if I was to ever overdraw my account, there's a single penalty fee with no daily fee, and a host of other free services. In the US: banks make money for their owners -- if you have a CU account you are one of the owners, so when CUs make money, they offer more free services to their customers/owners.
Won't get interest that way. If you prefer to keep your physical money within you physical possession, you might consider buying silver and gold. This way, your money can earn interest depending the market value of the metals, and you actually get to hold it in your hand. If the markets aren't favorable, you can hold onto the metal until the markets are favorable. Most premiums right now are pretty high, but you can find some good deals if you skip around. For silver, I won't buy unless the premium is less then $5 an ounce. For gold, I won't buy unless it's around $100 or less.
so... banks get money through loans. you need a loan from the bank to buy a house from the bank, in order to pay the bank, while paying the bank for the loan.
Yep, talking about banks without addressing fiat currency and fractional reserve banking (and the huge negative effect it has on a population) is like explaining cars but not mentioning internal combustion engines. This came off as quite a "childish" explanation of a bank. Like what a bank rep in a school would say to try and appear like they're your buddy.
@@CryptoRoast_0 Lol really? Banks don't lend out the money they receive from their depositors? Alright, I'll indulge you. If not the depositors money, then who's money do they lend out?
@@daikucoffee5316 no it's just recently all our corrupted banks declared bankruptcy and all our cash deposits have been split between the dirty politicians and bank owners
Would you like to do a video about your reaction to many titles like JSTW found god, or Roger Penrose destroyed big bang, we need a longer video about all those lies
@@majedaljamal1321 and…. HOW? Do you open a business? Do you wait until you have enough money under your mattress to open it? What about inventory? Do you wait until you amass thousands of dollars? It sounds like the only business you know is lemonade stand! 😆
this looks to me like you just HAPPEN to get some money from the interest they give you through a small amount of time, yet absorb all your money with the interest they inflict on you with a mortgage. this sounds predatory
Slight correction: a credit score is a legal way for banks and financial institutions to discriminate against POC and other minority groups, because the government yelled at them for discriminating openly.
Weird bc I applied for my home loan, car loan, and all my credit cards with out anyone ever seeing my face. All of which I qualified for without ever declaring my race or ethnicity. Instead of claiming there’s some agenda against POC maybe consider first that POC don’t manage their finances well and largely end up disqualifying themselves from loan options.
Uh Dave,,,,, these aren't the only ways banks profit... Overdraft fees for taking out more money than you have is charged at an exorbatant rate. sometimes 21-36 dollars..Absurd. They also charge fees for atm withdrawals that aren't from their own machines. Banks have become as bad as Lawyers fees and Health Care costs. If you are going to talk about Banks, please cover these additional "moneymaking" schemes. This isn't what I expect from you. Tutorials about banks? are you ok? Being held Hostage? Science is a more critical part of what you explain. You do that so so well.
Then use a bank that doesn't charge ATM fees. Don't overdraft your account and use a bank that forgives them. You aren't forced to use a certain bank. Ffs the bank inside of Safeway has everything I just described.
While I agree with Professor Dave about science, as he has probably forgotten more than I ever learned, I have to disagree with him about how banks function. Banking and Economics are another of those areas that are shrouded in self-serving propaganda, likely for the benefit of bankers and economists. The old fractional reserve and banks as intermediary's models no longer apply, and probably never did, at least for the vast majority of "loans" and money creation. In reality, there is no "loan" as the money is created out of thin air when a business or individual applies for a loan, there is no transfer of deposits to another party. What is really created is a security, a promissory note that specifies what the bank owes the individual or business (the amount, and other terms) and what the individual or business owes the bank, (the amount, interest and other terms). This is how the money supply is created in a capitalist economy, though economists would rather have people believe that interest rates are the thing that they control. Btw, this has been tested empirically by economist Richard Werner , the guy who's known for the term "quantitative easing", a phrase which he coined from the Japanese.
Go and take all that you have, and give to the poor. You will see, you don't need much to be happy. If everyone else will also do the same thing, everyone will have enough to live, and there would even be something left over... Now, no one would have to convince themselves any longer that money somehow serves a purpose other than exploiting those in worse starting positions... 🎉🎉🎉
You just taught me more in a 5-minute video than my entire Personal Finance class did for almost a year.
that's his goal after all 😁
Credit Unions. Credit Unions. Credit Unions. Close your bank account and move to a credit union. If your state won't let you, move to another state.
I've been with the same credit union since I was 10 years old.
People fail for the same corrupt, capitalist tactics at credit unions as they do with regular banks. At least that happend here in germany. People have been short changed with their loans.They´re strong in suburban areas. Not neccesarily better through imo or how things are in US
This is so true. The difference between a bank and a credit union is that the CU is owned by people who have accounts there, and banks are privately owned.
If a private company sells airplanes the purchaser gives that company money and receives a plane. Transaction done, no problem. The company then distributes money to the owner.
Having deposit accounts is different. The financial institution needs to make money, loans are not the only way they do that, they charge fees. A banks goal, like the example above is to get money to the owners. So the customer brings their money to the bank, and leave it with, the promise that the bank will keep it safe. But the bank needs to get money to the owners. This is called a perverse incentive. The bank is incentivized to do the wrong thing. To get money away from those they promised to keep it safe and give it the owners.
In a CU the owners are the people who have deposited money in accounts. It is less a private business and more of a club that provides a service. They do not have the incentive to take money away from the depositor and give it to the owner as they are the same people.
@@wackrapsatire In the US banks have fees for everything you do with them; their savings accounts will often be less than 1% interest; upon overdraft, they will charge you a penalty fee and a daily fee until you deposit more money. My CU lets me use ATMs for free, has a 5% interest account, if I was to ever overdraw my account, there's a single penalty fee with no daily fee, and a host of other free services. In the US: banks make money for their owners -- if you have a CU account you are one of the owners, so when CUs make money, they offer more free services to their customers/owners.
pro tip: American lithium stock 😜
It's peaking and falling in fairly predictable patterns, you can easily expect +80% if you invest at the low points.
Do you think you'll cover universal basic income in this series? (Ignore me if you already have and I somehow missed it)
yep i covered that earlier in the series
ahhhhh my bad then 👍
I go to the bank when I want to get a free ballpoint pen. 🖊️
me too
Always appreciate the ease these complicated subjects are broken down.
No banking video is complete without fractional reserve banking! Not even mentioned here
Not mentioning the hundreds billions of dollars in bailouts the taxpayer has provided them? They are unregulated monsters at this point.
Im glad im subscribed to this mega chad
Personally, I go for the "stuff the money in the mattress" approach. ;-)
Won't get interest that way. If you prefer to keep your physical money within you physical possession, you might consider buying silver and gold. This way, your money can earn interest depending the market value of the metals, and you actually get to hold it in your hand. If the markets aren't favorable, you can hold onto the metal until the markets are favorable. Most premiums right now are pretty high, but you can find some good deals if you skip around. For silver, I won't buy unless the premium is less then $5 an ounce. For gold, I won't buy unless it's around $100 or less.
so... banks get money through loans.
you need a loan from the bank to buy a house from the bank, in order to pay the bank, while paying the bank for the loan.
the bank doesn't own the house
@@breedcrumbs it's more of a joke.
WOW! Thanks Professor Dave. That came right in time since I want to take a loan
Continue making this kind of videos.its very great specified contents
can you make a video about fiat currency?? that would be very interesting!
Fiat currency is fake money that the government tells us is real.
Yep, talking about banks without addressing fiat currency and fractional reserve banking (and the huge negative effect it has on a population) is like explaining cars but not mentioning internal combustion engines.
This came off as quite a "childish" explanation of a bank. Like what a bank rep in a school would say to try and appear like they're your buddy.
@@CryptoRoast_0 Well.. It is just a five minute video explaining the basics. So it should be no surprise that it comes off as elementary.
@@pepperVenge but it's factually wrong that banks lend the money of depositors.
@@CryptoRoast_0 Lol really? Banks don't lend out the money they receive from their depositors? Alright, I'll indulge you. If not the depositors money, then who's money do they lend out?
Banks are prestigious modern day robbers
Then you either have the wrong bank or have the wrong type of account
@@daikucoffee5316 no it's just recently all our corrupted banks declared bankruptcy and all our cash deposits have been split between the dirty politicians and bank owners
Never heard anybody with any money talk to way you do.
@@coimbralaw and where did i talk wrong
@@coimbralaw maybe it's because i don't have any money 😅
dave can you do a video covering terrain theory?
A CD is like a bond
Would you like to do a video about your reaction to many titles like JSTW found god, or Roger Penrose destroyed big bang, we need a longer video about all those lies
Interest is what keeps poor people poor and makes the rich, richer. It should be banned from society and punished.
What a ridiculous statement! With no interest! There will be NO incentive from anyone to give you money! Wow!🤦♂️
Plenty of incentive, it’s called real business, pushing goods not paper
@@majedaljamal1321 and…. HOW? Do you open a business? Do you wait until you have enough money under your mattress to open it? What about inventory? Do you wait until you amass thousands of dollars? It sounds like the only business you know is lemonade stand! 😆
this looks to me like you just HAPPEN to get some money from the interest they give you through a small amount of time, yet absorb all your money with the interest they inflict on you with a mortgage. this sounds predatory
Now do the fraud of fractional reserve banking
non custodial solutions via public key cryptography> banks
Slight correction: a credit score is a legal way for banks and financial institutions to discriminate against POC and other minority groups, because the government yelled at them for discriminating openly.
No, it's to discriminate against poor people.
Weird bc I applied for my home loan, car loan, and all my credit cards with out anyone ever seeing my face. All of which I qualified for without ever declaring my race or ethnicity. Instead of claiming there’s some agenda against POC maybe consider first that POC don’t manage their finances well and largely end up disqualifying themselves from loan options.
Buy bitcoin, end the Fed
Uh Dave,,,,, these aren't the only ways banks profit... Overdraft fees for taking out more money than you have is charged at an exorbatant rate. sometimes 21-36 dollars..Absurd. They also charge fees for atm withdrawals that aren't from their own machines. Banks have become as bad as Lawyers fees and Health Care costs. If you are going to talk about Banks, please cover these additional "moneymaking" schemes. This isn't what I expect from you. Tutorials about banks? are you ok? Being held Hostage? Science is a more critical part of what you explain. You do that so so well.
Then use a bank that doesn't charge ATM fees. Don't overdraft your account and use a bank that forgives them. You aren't forced to use a certain bank. Ffs the bank inside of Safeway has everything I just described.
@@12345....... what a dumb response. Gotta be a trump supporter or bank pres
The function of banks is to take more of your money than they already do
Lol! I can’t believe you there are people who don’t know this. Is this channel for elementary school kids, like an after school workshop? 😂
It's high school economics content. You'd be surprised what high school kids don't know about basic things.
where is the money multiplier?
It doesn't exist
While I agree with Professor Dave about science, as he has probably forgotten more than I ever learned, I have to disagree with him about how banks function. Banking and Economics are another of those areas that are shrouded in self-serving propaganda, likely for the benefit of bankers and economists. The old fractional reserve and banks as intermediary's models no longer apply, and probably never did, at least for the vast majority of "loans" and money creation. In reality, there is no "loan" as the money is created out of thin air when a business or individual applies for a loan, there is no transfer of deposits to another party. What is really created is a security, a promissory note that specifies what the bank owes the individual or business (the amount, and other terms) and what the individual or business owes the bank, (the amount, interest and other terms). This is how the money supply is created in a capitalist economy, though economists would rather have people believe that interest rates are the thing that they control. Btw, this has been tested empirically by economist Richard Werner , the guy who's known for the term "quantitative easing", a phrase which he coined from the Japanese.
Hey Wael
Long time no see
Hi
Bitcoin/Blockchain/public key cryptography> traditional bank
Go and take all that you have, and give to the poor. You will see, you don't need much to be happy.
If everyone else will also do the same thing, everyone will have enough to live, and there would even be something left over... Now, no one would have to convince themselves any longer that money somehow serves a purpose other than exploiting those in worse starting positions... 🎉🎉🎉
Ok.
You first.
Hlo!
Good explanation on banks, maybe you can make a video who owns them and who runs the world?
Professor Dave doesn't do Conspiratorial videos, unless it's to debunk them. Nobody "runs the world". And you can simply look up who owns which banks.
@@DivinePigeon You're on black and white mode?
Where the hell is the immunology?!
next week
@@ProfessorDaveExplains 100% sure?
Jay ho mahakal
#FreePalestine
Cheque