How does the financial system work

[@Wabajak13]

"well that was an accident Brian" is a great summation of how institutions brush off their catastrophic screw ups.

[@averagecitizen4122]

Then they get nailed out by the government funded by the tax payers and guess who gets left in the dump at the end. The parking class

[@CFox.7]

yeah, but they dont even say accident in real life - just "unintended outcome" or "unforseen events" scumbags

[@RottenMuLoT]

But your money is safe with us.

[@dan-nutu]

@@RottenMuLoT "safety" for which you have to also pay fees. Which go as loans to other people and companies in order to bring back interest. All of which "disappears" in "an accident" and then the state, funded by the people, needs to "pump blood" into banks to keep "the system" alive. Can you see which way the money is flowing? Meanwhile the state is printing more money to give the people the illusion they still have the same amount. The same amount yes, the same value no.

[@defnotyou2b]

Gets tricky when your realize it was the government who mandated quotas for sub-prime mortgages.

[@Tedzdog]

Question: "Shouldn't people just buy things they can afford?" Answer: "You don't need to afford the things you are buying Bryan. You need to afford the interest on the money you need to borrow in order to buy them."

[@isabelledaniel1848]

+Terry Moschou this statement also caught my attention

[@TheCirrusIce]

well not really.

[@leavemealone7456]

Terry Moschou And this is why most people who drive nice cars...don't actually own them! Sickening, actually.

[@Shifticek]

and there is no problem with that, as long as you have healthy financial situation debt helps you live better life

[@lutky612]

that's how the economy works

[@nephos100]

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." - Henry Ford

[@doktorwyvern2883]

Ford didn't understand it much either.

[@nephos100]

@@doktorwyvern2883 Well, tell us the bits he didn't understand.

[@CuFhoirthe88]

@@doktorwyvern2883 He understood the problem's essentials. That much is clear from his writings.

[@nephos100]

@@rorymcleod2088 Just get to the point and say what you want to say.

[@peaceleader7315]

🤣.......

[@Carissa2731986]

"You help build a worse America..." "yeah well that was an accident Brian"

[@Mike-ks6qu]

Hahhaahaa

[@anonUK]

Our bad...

[@Snookbone]

We heard

[@annakeye]

R.i.p. John Clarke. A brilliant New Zealander, with a clever and frankly accurate take on the world we've created.

[@16sputnik7]

Thankfully Jacinda is busy solving all of these problems as we speak.

[@ElBantosClips]

@@16sputnik7 lol, classic

[@theoztreecrasher2647]

@@16sputnik7 Well it seems that she was astute enough to jump ship while her nest egg was still afloat. Oh is John Clarke's biting and accurate humour sorely missed!

[@ross4970]

Yes a great Australian like Russell Crowe, Phar lap, crowded house etc, etc.

[@joythought]

​@@ross4970as an Aussie, I appreciate all the clever Kiwis we acquire and re-brand as our own. It's a long list, Sam Neil.

[@costilla1212]

I genuinely didn't know this was a skit until he yelled "Mom" 🤣

[@Tjalve70]

That's why he's so brilliant. Search for "the front fell off", and see how long it takes for you to find out that's a skit. Except of course now I ruined it for you.

[@FlyBoyGrounded]

It's not really a skit. It's just a sickeningly funny and true statement of how money and economists work.

[@Longtack55]

"Mum" is actually how it is said in the Antipodes.

[@usmh]

All the 'Brians' give it away.

[@JohnGardnerAlhadis]

I understood the humour, but I still don't understand the economy. 😫

[@ClayCourtGuy]

This was 14yrs ago and we are still on the merry-go-round!

[@graog123]

Wake up buddy this is how banks have worked for hundreds of years, if not then thousands of years.

[@Hgjdoa682]

Pure gold :) - "Shouldn`t people just buy the things they can afford ?" - "You don´t need to afford the things you buying, you need to afford the interest on the money you need to borrow in order to buy them"

[@chrisjones5321]

About as funny as the state of the nation. Fuels gullibility and naivety. As funny as a migraine.

[@oxyiscool]

That line kills me, so many fall into that exact trap.. Only now the biggest killer is affording the interest to buy your own home...

[@1serious0mfr]

I've been asking this same question sense I was able to earn money.. Now I guess I have my ansewer

[@bannedspencer]

He was one of the better comedy writers, worldwide, in the last 30 years, John Clarke. To do what he did, without personas but just skilful analysis...as a guy who has written a lot of script comedy that was successful...he is miles, miles above my best day.

[@joshuaolian1245]

what did you write?

[@katzrantz]

The man was a genius.

[@gc33]

RIP John Clarke... Will be missed... Great satirical humour.... Sad. Taken too early at 68

[@Gredddfe]

In 90 seconds he goes from explaining how money is safe in banks, to saying that taxpayers need to give banks a staggering amount of money because of how badly the banks mishandled our money. Sounds about right.

[@oldskool1977]

Banks don't handle money. They steal it from us.

[@AllanSTEWART-so7fs]

You realise this is a comedy skit yeah?

[@Gredddfe]

@@AllanSTEWART-so7fs NAAA BROOOOO REEEEEALLY?

[@oekfoh8684]

​@@Gredddfe to be fair I couldn't figure it out until he kept going on about the front bit falling off 😂 first time seeing these guys a few years back

[@theoztreecrasher2647]

@@oekfoh8684 If you enjoy this then try some of his cinematic efforts. "Death in Brunswick" with Sam Neill springs to mind. 😉

[@MarcusGustavWilliams]

Great educational video. Should belong to every economics curiculum.

[@MrJrFish]

I miss him...I've watched this no telling how many times. The whole thing is just so eloquently put and exactly true. "We do hop into them a wee bit on the credit rate Brian. We stick the hydraulics under that b/c it's a higher risk strategy"

[@ponder2006]

Learned a lot about the financial system..it all makes sense now.

[@stuckfarmer]

You don't need to be able to afford the things you are buying Brian, you just need to be able to afford the interest on the money you borrow to buy them! But we do hop into them a wee bit on the credit rate Brian. Brilliant. Sad day for the Aussies and Kiwis...

[@riley8704]

Brian: "Well, so what are you gonna do?" "Well, now you give me seven-hundred-billion dollars imMEDIATLEY" Brian: "....why?"

[@arnobertogna4718]

Simplistically - this the guts of our financial system should taught at every high school in our country - & ensure that every student understands & excels in this course, irrespective of how you get the message across & understood - the minute this occurs the country (over time) will never have a financial problem again - the rich & privileged won’t be happy with this as they now have a fiscally educated customer base - but it will certainly see the disparity between the rich & poor in society substantially reduce - & for the better for all Australians in the future.

[@ZaprdicaJelic]

But that won't make us money, Brian.

[@eduj]

they prefer the majority to remain ignorant. easier to exploit them that way

[@mastod0n1]

"...the minute this occurs (over time)..." That part of that sentence reads like a Clarke & Dawe joke lol

[@TwoTubesADV]

Only taught in the posh private schools to keep the rich rich and the working class working

[@bobibest89]

I completely lost it at 1:05 "Oh good deal for me." 😂

[@KingOhmni]

This is actually a really good video and should be used in serious conversations relating to Fractional Reserve Banking and disingenuously named private banks. But the front keeps falling off.

[@MonMalthias]

Remind me again why with a fiat currency that "private" banks still exist?

[@HyennaTheOne]

@@MonMalthias because they are called National and nobody wills to believe that they are still private, name sayz they are National, dont mind the capital letter N. And dont you dare to say they are private again, you filthy conspiracy theorist!

[@roses9339]

I watched these 2 for years, they were so spot on. If you can watch more of these clips you'll see their sarcastic humour in full flight. Of course, you need to know the politicians they are pretending to be to understand the mock interviews. A true Aussie pair of comedians. Cheers Rosemary Perth Western Australia 72yrs

[@rykehuss3435]

John Clarke was a kiwi

[@roses9339]

@@rykehuss3435 yeh, but still loved him🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣

[@portkembla1955]

"I also charge you fees, the same I give to you in interest"......love it!

[@rykehuss3435]

they'll never catch on. The morons who think banks will "hold their money safe" while inflation eat all the money. For fucks sake, invest it in low-risk ETF's if nothing else. Money idle is money lost

[@87gob54]

That is the best laugh I have had for a while. I love Australian serious conversations about such important phenomenon.

[@edithbannerman4]

@Hello there, how are you doing this blessed day?

[@boatman6865]

Best explanation I’ve seen for the financial crisis

[@iansings7428]

"Mum, Brian won't let me play with his stuff!" "(you're in for it Brian)"

[@lambofwrath95]

This is comedy gold! “So you’re making a better Australia by making a worse America?” “Well, that was an accident...” Absolutely brilliant

[@ctiley2212]

You could never make America worse, vile sewer of a place it is.

[@cinemaipswich4636]

Roy and HG will always live in my heart. They gave us the comedy we needed to hear.

[@saml1398]

Roy & HG are still broadcasting their current program “bludging on the blindside” - helpfully both are still alive

[@kingy002]

I use to love listening to them on Triple J here in New Zealand over the internet.

[@fortawesome1974]

RIP my friend I will always miss your witty takes on politics that I grew up with especially in the 80's. you guys were hilarious and informative!!

[@homerco213]

R I P John Clarke.

[@pascaly]

"we stick the hydraulics under that" lol

[@FatherJoel]

That was the funniest part for me. Gonna be using that.

[@xxMrBaldyxx]

This is a very well written skit. It is both sad and true.

[@mikenelson8351]

Thanks Bruce Tonkin. This beloved pair rank beside 'Yes Minister"!

[@pingupenguin2474]

Bring back Yes, minister, we need its wisdom today

[@fishysnake1]

" Yes, well, most economists are market economists to a degree today, Bryan." Lol.

[@What_was_wrong_w_jst_our_names]

Honestly pretty solid explanation of credit debt and interest

[@UselessDuckCompany]

Well, the front fell off!

[@kirubelabebe7960]

Rofl, Australian's economy front fell off

[@troppodude]

A wave hit it.... what... at sea? Yep... 1 in a million

[@warrenphillips69]

In the environment...

[@iNexTTx]

Born Again Atheist No it’s been taken outside the Environment, it’s not in an Environment.

[@RootedHat]

Oh hey

[@davidgoat6730]

When I was watching these as a young boy, I actually thought they were serious, and not a parody!! haha

[@waynethera2712]

David Goat, sadly this is incredibly accurate.

[@akdb6017]

I thought that even now too! Only after I read the comments I understood it was satire!

[@rwags6848]

To be perfectly francis, that was clever! Well said Fred!

[@KaiTenSatsuma]

The sad part is that's pretty accurate

[@iamillasfuck]

That's the joke...

[@9microbe9]

Are you absolutely sure this is a joke? From where I'm sitting nobody has actually said anything that wasn't accurate. We are having to pay huge amounts of imaginary money to institutions who will lend it to us so we can buy stuff we don't need that they make at interest rates that make your eyes water. Where does this money go?

[@rowanshole]

Yes, 100% completely accurate.

[@barryobongo8833]

That's comedy

[@ewanmcdonnell6990]

No this is pretty much what was taught in 1st year macroeconomics.

[@guillaumesandmayer7053]

Utterly violent savage intellect in motion .Loved him. Please where is the second coming of this man?

[@alastairfraser9803]

I have learned to enjoy them and now I am a regular fan.

[@InstTaxSolutionsLLC]

Overall, this is a pretty good description of how the financial system works.

[@The22on]

Humor is always at its best when it's based on TRUTH. I took college courses in economics and most of what is on this video is exactly what I was taught. They're really discussing the Multiplier Effect. Every new dollar 'creates money' as it flows through the system. One thing I really agree with is: Don't spend money you don't have on non-essential items. I would never buy. let's say, a big screen TV unless I had $1,000 in the bank. Why? If I finance it, it will cost me at least $1,200. Why should I pay $200 more? By the way, I was really pissed when the American government handed a trillion dollars to Wall Street. And I'm even more pissed that the government removed regulations that would prevent it from happening again.

[@sovaignon]

Regulations were the cause for the skewed incentives to start with, giving rise to the subprime loan boom. Bush started a campaign called Every American Should Own a Home where banks where incentivised to give loans to people with lower credit scores(sub prime), for which a higher rate could be taken. These subprimes were an essential part of the crash.

[@Inanedata]

@@sovaignon ...were those the regulations the gov. took away to stop it from happening again?

[@customerguy8581]

But, see, therein lies the problem, because at least in America if you live like that then you will end up with either bad credit or no credit, which functionally are the same thing. In order to receive credit you must partake in the credit system and finance things on which you pay interest. It's a scam in which you inherently must pay more money than things are worth, or you are disallowed from participating in the system. I know this because I lived my life that way for many years only to realize I had apparently royally fucked up by only purchasing things that I knew I could afford. The crux of the issue is that to get credit you must participate in this scam, and credit is more and more being applied to things wherein you aren't even asking for financing. It's almost impossible to rent an apartment, rent a car, get a job, or any number of other things without having your credit score checked, and if it isn't high enough you are denied. It's being used as a de facto way to tell whether or not someone is a decent member of society, and I hate it. As part of "building up my credit" I'm going to get a "pre-paid credit card" which is where I give someone my money, and they "allow" me to spend it and pay them interest on that spending, all in the name of accruing more credit, so eventually if I give them enough interest they will allow me to participate further in the scam and get a real credit card where I can spend their money and give them interest for it.

[@joythought]

2 things: the gov made money on that money lent to bail the banks and the laws were changed to require major banks to hold more reserves which is why the major banks were in a position to buy the little banks in the recent US banking crisis. So your info isn't accurate

[@ev6558]

@@customerguy8581 Uhhh, sorry but this is false. You don't have to pay interest to get credit. You can get a credit card where you don't pay interest if you don't carry a balance and this will build your credit, just put stuff on it that you were gonna buy anyway and pay it off every month. Paying your utility bills builds you credit because you were "loaned" the utilities only to have to pay for them at the end of the month. When I became an adult and started living on my own I had no credit because I had never had any bills in my name or taken any loans, I always just bought used cars with cash etc. and this is how I built decent credit in just a couple years.

[@PotBanginEejit]

This is brilliant. They play their parts sooo well. And that ending…

[@Duncan94]

I am the only one who actually thought this was a legit conversation about the 2008 financial crisis - until about half way through that is!

[@markmclaren3836]

No you're not mate, Clark & Dawe took down a heck of a lot of people, all over the world. Don't worry, you are definitely not alone. Their humour was as cutting as it possibly could be. We Aussies just plain LOVED IT. XXX

[@lbowsk]

These guys were genius. RIP, Sir.

[@Jacquibim]

"Well who's advertising things that people don't need?" "The companies we're lending the money to"

[@StudioMod]

"You don't need to afford the things you're buying, Brian. You need to afford the interest on the money you need to burrow in order to buy them." My lord, I learned more in this single statement than I ever did in economics.

[@TestarossaF110]

This is honestly actually really really good. I hope they show these in Econ classes.

[@EpicHotCheese]

If only more people watch and understand this video, the world won

[@DerekArmsden]

John Clarke, the bald one, is originally from New Zealand. Clarke & Dawe have been doing these short clips for decades, they air at the end of a current affairs show called 7.30 Report but they don't have a full show to themselves.

[@glytchd]

@1:28 RIP xD Seriously, it's like when I told my sister "I can't afford a new phone". She was dumbstruck and said " *just buy it with your credit card* " *facepalm*

[@0596daniel]

Two satirical geniuses. Sad that there won’t be any more

[@covercalls88]

This video should be called leveraging money. I do like these videos.

[@Kalenz1234]

I actually laughed out loud. Probably scared the neighbours. Brilliant skit.

[@joleneevans5483]

This bloke is the funniest comedian from our era :)

[@cathyflorence8040]

John Clarke was so clever and had a great sense of humour. He's greatly missed.

[@fuzzjunky]

everytime that eyebrow lifts is funny and i don't even know why

[@davekpghpa]

Great stuff! It's a sorry state we're in where we have to depend on comedians to teach us about our screwed up monetary policies.

[@MacOne53]

The funniest man to come out of NZ. Thanks for the laughter, Fred.

[@summermoon]

"Mum, Brian won't let me play with his stuff!" HAHAHA.

[@Dale-q5c]

I remember these skits on Australian tv they were great

[@Si-jk4iy]

The beautiful irony is, now you can Afterpay (expensive credit) for Grocery Shopping....... Thereby confirming that the Financial Sector has run out of ways to screw you over......

[@anthonyscott3402]

I mean afterpay has 0 interest

[@unggrabb]

Brilliant. The interaction between the two, sensational

[@MatroidX]

@TheTrueJBV3737 Completely agree :) I have a FICO score of 827/900, which is supposedly very good, but all I've done is restricted myself to one credit card and paid my bills on time. It's not complicated, but yes, self control and education about this does seem to be lacking. For instance, I know people who are not yet thirty and have over $100,000 debt (about $20,000 of which is on credit cards!!) and I wonder how they ever let it get so bad...

[@coolhand1964]

These guys were geniuses, able to candidly explain the futility of our lives with the darkest of dark humour.😅

[@christopherbriggs9526]

Who's still experiencing this in 2024?

[@khayelihlengcobo5613]

Present

[@nnaheim.]

2025

[@Learnwithgrant]

It’s the banking system you’ll always experience it 😂😂

[@AcadianHome]

great job! i just learned in 3 min how the economy really works economics 101

[@literaryartist1]

*"You don't need to afford the things you're buying, you need to afford the interest on the money you need to borrowing in order to buy them"* WOW THAT SINGLE QUOTE IS POSSIBLY THE MOST CRUCIAL CONCEPT PEOPLE NEED TO GRASP!!!

[@BuGGyBoBerl]

because?

[@literaryartist1]

The unfortunate truth is...in order to get far in life, as finance and economics is concerned, you need to know how to leverage money. If that concept is lost on you..well idk what else to tell you. Also, it's not numbers only as most believe. There's also an art to it.

[@BuGGyBoBerl]

@@literaryartist1 well, i understand the logic behind that concept and im sure there are certains ways to do things to get the best results, but i also think there are major flaws and one dont have to use every trick in the book when he thinks its not right. This quote obviously has some truth in the current system but it also causes good amount of trouble.

[@literaryartist1]

@@BuGGyBoBerl True. It does has its flaws. Biggest of them is perpetual debt. But every person that has acquired wealth has done it mainly through the means of debt. The unfortunate truth is that every financial success story is in big part founded on debt. Now how far every individual person is willing to go, is up to the individual. The way I see it, the reason these billionaires keep on playing the game is out of enjoying the feeling of winning. Just my $0.02

[@CIARUNSITE]

By far the best of these short sketches.

[@lamsmiley1944]

You should watch “the front fell off” by these two. It’s probably their best skit

[@CIARUNSITE]

@lamsmiley1944 That one is definitely good too. Think I did just about their whole playlist. I'm back to watch my favorites again lol.

[@Bleh67420]

Me when someone says I screwed up colossally on something at work: “frankly, famously, it hasn’t been a huge success.”

[@edithbannerman4]

@Hello there, how are you doing this blessed day?

[@dewok2706]

this coming out in 2008 is wonderful

[@MmTriplem]

"and you pay me interest on that?" "yeah, but I also charge you fees" "how much are the fees?" "the same I had to pay you in interest (so that you don't riot)" "well good for me ain't it?" This was genius man😄

[@burtgallagher6499]

Lmao! The last second, literally ending on his reaction to “you’re in for it!”, priceless.

[@Gus1966-c9o]

So miss John and his skits with Brian .

[@SilentReports]

Just wow! Amazing clip!

[@alextupou4992]

It wouldn't be so funny if it weren't so true! Bloody hilarious!

[@D0praise]

With this one they’ve gone right past funny to painfully truthful.

[@Vnix]

AND IT'S GONE!

[@ThisisRealTreasure]

This is gold! And evergreen! Just like gold..

[@Prysewhert]

"- but shouldnt people be able to afford the things they buy? - you dont need to afford the things you buy brian. you need to afford the interest in the money you need to borrow in order to afford things" whoa dude

[@zhouwu]

That explains a whole lot about a whole lot of things I didn't realise I needed to be explained to me. Does that even make sense? Hope so.

[@37Dionysos]

"Bit of a lolly-scramble, Brian!"

[@Xsetsu]

Brilliant example!

[@GhostOfSnuffles]

The financial system is built to very rigorous standards and it is not normal for the front to fall off.

[@JohnSmith-yv6eq]

1929, 1987, 2008, 2020 have enterd the chat

[@denis888red]

These two are outstanding. Can't believe I hadn't discovered 'em before 🤣

[@Cyphlix]

2025 & depressingly still relevant. Screw socialism for the rich

[@maradall]

And just as relevant today. I miss these guys, I really do...

[@nev707]

I still remember Clarke with a blonde bee hive wig being Bronwyn Bishop.

[@thatdudeinasuit5422]

From Clark and Dawe awesome TV show.

[@07751434]

"We're taking a towelling." 4 years later we're still getting towelled.

[@Tadesan]

Oh my god. I want to move to Australia! I love you blokes!!!!!!!!

[@iantinkler3562]

RIP John Clarke

[@nholsjohn]

This is awesome. Comedy that explains economics. Does these guys have regular show?

[@sarahbass6116]

Oh how I miss John Clarkes’ wit and wisdom.

[@playinggames7856]

oh my gosh, these are great.1:38 - "...we do hop into them a wee bit on the credit...stick the hydraulics..." rofl.

[@NyanSten]

Except banks don't lend money from their depositors, or rather they don't need depositors to lend money. That's very common misconception about how it works. They can borrow the money from other banks. The whole banking system is very strange and confusing.

[@spiritualantiseptic]

Banks use leverage. For every dollar they have, they can lend 10 just by putting numbers in a system.

[@bremCZ]

How do they get a lone from another bank if there are no depositors?

[@carlwesternut2434]

The banking sector is a pyramid scheme.

[@jimmybrad156]

This ages so well.

[@joeym5243]

"we charge a fee because we hold onto your money, it's secure" -later: "Do you have any money?" "No, we lost it all"

[@unclejoeoakland]

Mooooooommmm! Brian won't let me play with his stuff!

[@stretchpadawan1]

John Clarke RIP

[@mateo134]

@Empariz A bit late with a response, but you're right that banks lend out more than the cash they have stored. Rayme said they lend out more than you DEPOSIT which isn't possible unless the bank can print money. Here's the banking system: you deposit 10, bank stores 1 or so and lends out the rest. The system works well when well-regulated, but fails when banks keep little reserves and make crappy loans.