The Fed as Lender of Last Resort

[@TheBIGJake111]

What a fantastic video! Very good succinct explanation of what can be seen as very complex.

[@cancelled_user]

1:21 - if there's ever a run on a bank, can I still transfer my money from this troubled bank to my other bank account in a different bank? Or is it usually too late even for online transfers? I mean, while other people are waiting in a queue to withdraw cash, I could transfer my money via online banking.... or maybe not? :)

[@RC-ck8yp]

I am afraid you will have to wait in the queue like everyone else :)

[@indigoHatter]

The point of the FDIC is to protect *you* in the event of a run, not the bank. Therefore, you shouldn't worry about your money in the event of a run. In fact, if you touch your money during a run, you are contributing to the likelihood of the bank's failure. Only touch your money if you need it, and only touch what you need. Don't let crowd panic concern you. The only reasons I can think of for touching your $ because of a run include: * finding out that some or all of your money isn't covered by FDIC. However, that should be managed at *all* times, not just during bank runs. * realizing you are yourself illiquid and do not have access to $ needed for expenses within the time period that your funds may be blocked by a failing bank reaching out for FDIC-coverage. In both instances, you should plan your $ better during normal times, not just during runs. This will benefit you more greatly on a daily basis, and will also protect you better during bank runs.

[@azarakhshsawmen127]

Couldn’t the bank just shut their servers down so that you wouldn’t be able to do that ?

[@azarakhshsawmen127]

Couldn’t the bank just shut their servers down so that you wouldn’t be able to do that ?

[@macsnafu]

When government regulations try to supplant market forces, only then do you learn to appreciate the full extent of those market forces, and why government has so much trouble maintaining a proper balance.

[@Brazbrah]

Another great video! This channel really feels like a hidden gem - can't wait for the bitcoin episode. The implications of a global, decentralised money system on monetary policy and institutions will surely be a game changer.

[@Semislavia]

Hazdude not gonna happen.

[@dsmonington]

thank mr bernke

[@Weijiedylan]

You've forgotten to mention that the federal reserve is a privately owned corporation which has private shareholders with a yearly dividend of 6%. it is stated in the fed website.

[@bbeaum1]

Video topic: How did the American economy experience such break-neck, rapid advancements in the 1800's, before and after the Civil War, long before the Fed was there to serve as a safety net? In general, how do rates of innovation and elimination of poverty compare before and after the Fed?

[@christianschwalbach7561]

More room to grow, period. We were behind Europe industrially in the early 1800's and caught up during that decade. There were several panics and recessions in the late 1800's as well so it wasnt steady growth, just rapid. See their vid on the 20th century rise of China

[@12white1]

@@christianschwalbach7561 You caught up because of ww2. It's that simple...

[@tsukinokitsun3]

I love all these videos and they are so helpful. I like that they try to be fun. thanks guys

[@oceanspondsandstreamswithd3948]

Amazingly well made video about something really important.

[@Andy-em8xt]

In NZ the reserve bank doesn't insure deposits at all. The banks know this and don't take on more risk than its worth. But I don't see how you can change such an ingrained culture in the US. And changing back to uninsured will scare many people.

[@gabbar51ngh]

Increase the amounts of reserves needed within a bank. Simple. It will lead to less loans and contraction of economy though. So it can be done when there's chances of high inflation

[@Andy-em8xt]

@@gabbar51ngh I agree and I think that's what the US did after 2008. Banks now are keeping deposits well above the minimum, because 2008 was a huge wake up call. But there is still a tradeoff between more bank regulation, or being exposed to moral hazard when the government provides these guarantees/insurance. You could just not guarantee anything but that might be a useless bluff, because the banks know the government won't let everything come crashing down.

[@dailtonluizmagnagojunior1321]

Amazing video!

[@shubhambhartiyargp]

Great content

[@meeraperez7453]

What would be the benefits and costs of using the Fed as a lender of last resort?

[@MichaelJamesSeattle]

I think I heard that the purpose of the Fed is to protect "the system." Not taxpayers, entrepreneurs, the free market, or you. The System.

[@ChrisMcSweeney]

Wonderfully succinct explainer. I sincerely hope this comments section doesn't get hijacked by idiot conspiracy theorists who've spent far too much time watching dumb (and vaguely anti-semitic) KZbin videos.

[@ChrisMcSweeney]

^ Oh great, there's one now.

[@holyleech2159]

It will

[@herbertspencer8293]

kzbin.info/www/bejne/n5quo2CfZZdlo7s The Progressive Growth of the Money Supply Principle (year 2013) tells us the exact quantity of new money the economy needs to works correctly, driving us to the Wicksell interest rate or natural interest. This principle will force central banks to change monetary policy.

[@patrickt873]

Great vid

[@byrdiethemighty]

They could have very well bailed out the people as opposed to the banks AND none of the loss of 2008 is on the books, because we can absorb it 🤔

[@alexanderpalmer9131]

If bailouts were just the fed or the gov investing in failing banks or companies, ie taking on ownership (and dividends, board seats etc), could that not serve as an incentive not to take too high risks, since the investors would risk loosing profits and shares?

[@50ShadesOfEndo]

Great video

[@theoreticaleconomics9001]

You are the best

[@NS-zi1xv]

Man, the fed has it rough these days

[@vaibhavgupta20]

what is shadow bank?

[@MarginalRevolutionUniversity]

Vaibhav, Check out this video where Tyler covers that term: kzbin.info/www/bejne/mnqZeYGfaq5rmpYm45s Roman

[@vaibhavgupta20]

great thanks.

[@SilverBullet27188]

Please create a video about what Economists think of net neutrality and utility monopolies in general. It seems bad on the surface but I would like to hear about it from an expert.

[@PortalLibertarianismo]

End the FED

[@right-winglibertarian3896]

Israel Finardi most definitely!

[@ChrisMcSweeney]

YEAH SCREW STABILITY. WHO NEEDS IT?

[@PortalLibertarianismo]

The economy fixes itself by suply and demand. Its natural order. When the government or the central banksters interveins trying to help private banks and corporations with fake money, the economy do not have a genuine recuperation. Fractional Reserve System is the root of all problems that we see in modern societies. All crysis is a derivative problem caused by the FED. All the loans that the banks gives to the people, have to be picked in a form that the owner of the money knows the bank is giving a loan.

[@PortalLibertarianismo]

If this not happens, crysis will hapen .

[@PortalLibertarianismo]

Bitcoin will fuck central banksters and the tradittional corporate system. A deflationary coin is better than a inflationary coin.

[@richcampus]

"Insolvent Bank = Liabilities > Assets" @1:12 @One Minute Twelve ~ An insolvent institution is one with more liabilities than assets @1: 13,...

[@ANigerianPrince]

"End the FED" is a Meme. Not an argument. Ignore it.

[@fatpotatoe6039]

ANigerianPrince is a Meme. Not a person. Ignore it.

[@pelumiobasa3104]

Thank you

[@mategabitsinashvili2065]

? ^^2