Conspiracy Burger asked for me to do a simple explanation for bailout and negative interst rates. I hope the links below help.
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LEARN MORE ABOUT: Bank Failures
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Bank and corporate bailouts have become a topic of much discussion and controversy in recent years. These financial rescue operations are measures taken by governments to prevent the collapse of major banks or corporations during times of economic crisis. The aim is to stabilize the financial system and prevent a domino effect that could have severe consequences for the global economy.
During times of economic turmoil, banks and corporations can face significant challenges that threaten their existence. Factors such as excessive debt, risky investments, or a deep recession can push these institutions to the brink of insolvency. If they were to fail, it could lead to a loss of confidence in the financial system, as well as a disruption in various industries, resulting in widespread economic hardship.
To avoid this scenario, governments step in to provide financial assistance to these struggling institutions. This assistance can take various forms, including loans, guarantees, or capital injections. Essentially, taxpayers’ money is used to prop up failing banks and corporations, with the hope that they will eventually recover, return to profitability, and repay the government.
Critics argue that these bailouts amount to rewarding failure and, in some cases, even encouraging risky behavior. They also believe that it creates an unfair advantage for large corporations, distorting competition and hindering market efficiency.
However, proponents of bailouts contend that the systemic risk posed by the potential collapse of major financial institutions justifies government intervention. They argue that the consequences of allowing these institutions to fail would be far more damaging to the overall economy, leading to massive job losses, reduced credit availability, and a severe recession.
Ultimately, the decision to grant bailout assistance to banks and corporations is a balancing act between safeguarding financial stability and avoiding moral hazard. Governments must carefully assess the potential impact of a bailout, weighing the long-term benefits against short-term costs and potential drawbacks.
It is important to note that bank and corporate bailouts are not a permanent solution. Governments usually impose strict conditions on the recipients of bailout funds, requiring them to undertake reforms, restructuring, and improved risk management practices. The aim is to ensure that these institutions become more resilient and less susceptible to similar crises in the future.
In conclusion, bank and corporate bailouts are government interventions aimed at preventing the collapse of major institutions during economic crises. They are intended to maintain financial stability, protect the economy from severe recessions, and prevent a domino effect that could have disastrous consequences. While controversial, bailouts are seen as a necessary evil to mitigate systemic risks, with the expectation that the recipients will make necessary changes to prevent future crises.
When the government takes money and showers it all over banks and corporations which props them up and keeps them from bankruptcy, that fascism
Listen to what the experts say then do the opposite.
Remember, the Bank is not your friend.
Federal Reserve took loans 2008, reduced rates, and the money supply was not increased.
Fed buying bonds today from Treasury increases money supply. Money is created. Created out of air. Causes inflation.
Banks dont have to have reserves as of now so they dont have to be concerned about money in bank.
Countries with declining currency will buy our bonds. Russian currency dropped over 20 percent this year compared to American.
Look around you and relish in the most prosperous nation on earth that millions are clamoring to get into
There’s your answer
Big Banks, The Fed, Big Corps…whatever they’re doing they’re doing it right
This crisis is a temporary glitch
TRUMP 2020
Nothin from nothin, leaves, nothin.
Great informative video post…. Learning a lot from your posts
I have to say I am laughing now
I have to listen to this again
are not the fed monotizing the debt
I have been hearing they are buying stock directly
again where are they getting the money
A cycle of extending lines of credit which can never be paid back because you can't get returns at the rate which compounding interest is working against you
The sheep will not understand this. You just give them $1200 to keep them blind and happy
Negative Interest rates .. the only torture tool left in the bag of "devices" that the handlers of Wall Street haven't used against traditional savers in the endless goal of propping up faux equity values ..
.. and now, on business media shows .. it is being spoken of more and more "here and there" as a future exit strategy device dealing with the Fed's long term balance sheet.
The USA is moving very close to a war with China. In one month all the talk will be about the war with China. Once War is announced, the USA stock market will drop to 2000 levels.
Shout out from North Carolina! Love your videos.
Another good video. Stay safe, UE
You can rob a bank with a gun. But you can rob the world with a bank.
So still a country of creative businesses is destroyed after all Mr Powell and his great team are now ensuring creative destruction is not here anymore but the new ideas wither .
https://www.zerohedge.com/markets/creative-destruction-dead-powell-has-spawned-army-zombies
Your Selling There BS
The Only Thing to Know Is It Will Be A nuclear END Money War's, Then Bio War's , Then Nuclear END ….Greed Money Lies Killing The EARTH Corp Gov Is Greed Stupid U See A light & Then No More
I bought a lot of USG I-Bonds back twenty years or so; FYI they are tied to the inflation rate. The contract stated that even if the inflation rate went negative, that the bonds would never yield less than zero. I thought that was impossible back then, but here we are.
Conspiracy Burger sounds better than Bill Gates BYND Meat Epstein Burger.
primary dealers r the middlemen
Guys here it is!!!!!!!!!! The explanation of why the deep state is doing this. It is the capital demand from small businesses that inflates interest rates and deep state doesn't want that. So they purposely reduce demand for money . https://youtu.be/mwsohO9mFE4
Hey man. Love your videos. So informative. I have to come to YouTube to get decent content about what’s going on. Mainstream media won’t tell it how it is.
Lumber is down it really doesn't show at Lowe's and Home Depot?
Treasury Ponzi schemes in the works which leaves We The People holding the debt that is NEVER paid.
Funny money! Money manipulation! Ponsi scheme!
What can I do with 200,000 at this time to get a decent yield??
George Carlin – Germs, Immune System
https://www.youtube.com/watch?v=X29lF43mUlo .
Bailouts si, bailins no
How does the government know it’s not overpaying the companies? Always hear about people worrying that a worker is getting overpaid. I could care less if we overpay a poor person. I am not democratic or republican but I am tired of poor and middle class getting short changed. It amazes me how many people all of a sudden get worried about the deficit when the government is fixing to help low or middle class but they say nothing when corporations are getting bailed out.
The Fed has clear legal constraints on what it can buy. It has bought "fallen angels" but not legally. The books are being cooked by a SPE Special Purpose Entity. A SPE is a pure accounting slight of hand. This SPE has been set up by the $450 billion sent from Treasury to the Fed from "CARES ACT last month. This then creates a leveraged $4.5 trillion slush fund. This money will serve much like the "Repo loans" Lehman used to hide debt on their quarterly 10K reports running up to 2008. After reporting was completed, the debt went back on Lehman's balance sheet thus deceiving investors. The $4.5 trillion SPE will provide similar funds to take Corp bonds off Corp balance sheets for quarterly reporting. Again cooking the books. This allows the Fed to avoid purchasing the bonds, which is illegal, but simply make them temporarily disappear as needed for accounting purposes. This will all end badly soon.
Sounds like three card Monte
Primary dealers are flipping the treasuries at a markup. Some of the MBSs are worthless & in 2008 contained mortgages that hadn't even been written yet. The SPVs are capitalized with $10b in taxpayer money, leveraged 10x to buy corporate bonds, ETFs, junk bonds. The taxpayer is on the hook for all of it. Read the latest wallstreetonparade. Pension funds are buying neg yielding bonds, too.
When you say that you're holding a negative yielding asset into maturity, you're guaranteed a loss, I agree, sort of. You have to remember you need to take inflation into account and look at the real return of the asset you've acquired. If, for example, you have a bond that gives you -.25% and there is currently 1% inflation, you're actually taking a 1.25% hit every year. However, if that country is experiencing deflation, or expecting deflation, if you own that negative yielding asset and there is deflation of -1%, your'e actually coming out ahead by .75%. Japan has been dealing with this issue for the last couple of decades.
I think if you take a look at the ECB and the BOJ and their current situations with negative interest rate policies investors are looking for any sort of positive return. It's simply a race to the bottom. I believe if you are looking at why the stock market has rallied so much, even though with the current economic situation we are all in, I think one should look at where the average person, pension fund or any other large institutional investor is trying to park their dollars. You can hold dollars, producing nothing, having inflation eat away at it, or you can at least invest in something that gives you some sort of yield. If treasuries are giving you nothing, corporate bonds hardly doing anything better, at least equities are paying some sort of yield, just in the form of dividends instead of interest payments.
I could be wrong, and I certainly understand the problems with that investment philosophy. I just think that's the world we are living in right now.
This crisis is showing ones again how fragile economy's are and is also showing that we the workers are the engine of the economy knowing that fact is unbelievable how greedy the Fed and the big corporations are to the point where they are watching you starved to death and how little they care!! Oh well I guess is the rules of the game good luck everyone!! And by the way you should change your name to Very educated economists from now on thanks you for your honesty!!
Great video Txs bro
Ponzi scheme!
And this is different then the PPP etc because they don’t need to be accountable about what they do with the money.
it's a security so fractional banks can use those negative bonds just to meet their obligations, they really don't care too much if they are yielding or not
Okay , that was confusing
To support your channel I let the ad play prior
The "Common Genius" (throwing that name out for a new channel for you)…. you articulate and speak your thoughts very well! Thanks for that!!
Money is debt. If people max out all credit someone else have to put on debt to keep the bubble going. Now people and the government can't take on much more debt so the engine is running very low on oil. And the US tries to get their allies to borrow more money. They now want to lend out their US dollars to Swedish banks but thankfully they aren't in need for the dollars! Also it's cheaper to borrow from the open market because the interest has been held down so low.