Hmmmm …. How is a borrower considered an asset? I believe it is an educated gamble to believe I will get paid back the money I loaned out. It appears to be a system based on faith in getting a return
They aren’t really using their equity, but rather other people’s money. Equity is a claim against assets; here that is initially the $1m building, then the $200k interest that came in for total $1.2m. Also, in the purest sense, the interest is payment for matching up people’s savings with borrowers and assuming all risks, as still owe savers their money + promised interest.
This video is interesting because it helps to demonstrate how the rich get richer faster than the rest of us, as banks (for example) can make investments from their own equity without requiring a loan, i.e. no interest to deal with.
Thank you so much. All your videos are very helpful. I know I might be demanding too much but can you post some basic videos on electronics and computers…
“the graphics are shit?” what is wrong with you this is a perfect explanation of how you are being stolen from WAKE UP FOR ALL OF OUR SAKES if you are too stupid to understand something simple then please watch tv you deserve it
There videos are amazing. My econ teacher is terrible and I’ve been watching a lot of your videos to make up for his terrible lectures. You’re a much better prof
Lol, machine guns. Where’s the golden parachute? Oh I get it your bank didn’t hand out any credit cards or checking accounts yet with all the added services.
Hmmmm …. How is a borrower considered an asset? I believe it is an educated gamble to believe I will get paid back the money I loaned out. It appears to be a system based on faith in getting a return
They aren’t really using their equity, but rather other people’s money. Equity is a claim against assets; here that is initially the $1m building, then the $200k interest that came in for total $1.2m. Also, in the purest sense, the interest is payment for matching up people’s savings with borrowers and assuming all risks, as still owe savers their money + promised interest.
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pretty good for beginnners
lol, my teacher worked at coca-cola factory so my teacher knows what he is talking about… im just here for the fun
so… how does this help the little guy out?
This video is interesting because it helps to demonstrate how the rich get richer faster than the rest of us, as banks (for example) can make investments from their own equity without requiring a loan, i.e. no interest to deal with.
Thank you so much. All your videos are very helpful. I know I might be demanding too much but can you post some basic videos on electronics and computers…
I wish my Economics teacher could teach like you. Great video, thanks for posting.
WOW! You should teach teachers how to teach…
thanks for this man.
everybody – please also watch the Crash Course by Chris Martenson – simply a brilliant compilation
Pretty basic but worth watching ; )
you fool!
hes trying to help you out and teach you something and all you two can do is whinge and call him a “baby”?
miserable prick!
“the graphics are shit?” what is wrong with you
this is a perfect explanation of how you are being stolen from
WAKE UP FOR ALL OF OUR SAKES
if you are too stupid to understand something simple then please watch tv you deserve it
great vid thanks !
I agree. It seems lame to use a computer to draw text by hand. Why not just type?
geez cant understand the drawing..its like its been written by a baby
Revenue is income, NET income is revenue (income stream) – expenses
There videos are amazing. My econ teacher is terrible and I’ve been watching a lot of your videos to make up for his terrible lectures. You’re a much better prof
I love the rawness of the drawings… Its more about what your trying to explain then it is about the pretty pictures.
Great vid., once again! Perhaps “Interest Revenue” would be a better term than “Interest Income”.
Thanks so much for making these finance and banking videos. I’m an accounting minor so these are very helpful.
s/steel/steal/
Doh!
There are three ways of making money: marry it, inherit it, or steel it.
Lol, machine guns. Where’s the golden parachute? Oh I get it your bank didn’t hand out any credit cards or checking accounts yet with all the added services.