Yale Economics Professor Explains Latest Banking Collapse
In this video, Professor Richard Wolff discusses being in Yale economics class with now-US Treasury Secretary Janet Yellen, who learned everything alongside him and betrayed it all.
The first question posed to Professor Wolff is what happened to the Silicon Valley Bank and he explains that it isn’t a special or unique occurrence but rather a common one. This is because banks decades ago proved to the American people that they cannot be trusted with something as important as money and the current Government is allowing this to continue.
We must remember that these banks are private capitalist enterprises and profit is their number one priority. Profit is their bottom line and they use the monetary system to make money. This means that they take risks, they take in the money from depositors, individuals and businesses, paying as little as they can for that. They then use this money to lend the depositors money back in the form of loans which they profit off.
This all seems pretty standard unless the bank gets into difficulty, for example, the depositors want their money back, the bank can’t return this money because it has been lent out so what happens? The simple answer is the banks use their own capitol to pay the money back, however, if a large amount of the depositors want their money this is a huge sum of money and the banks might not be able to cover it which is exactly what happened in Silicon Valley.
Source: YouTube
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“People in government are “working to save capitalism from itself”…. Prof Richard Wolff.
Private issuance of debt-based currency and centralised, fractional reserve (now zero reserve) banking is not “capitalism”, not even close. Back to school for you, prof.
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karlito
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this happens when you constantly make majority people poor so a few can get ultra rich… yes, it’s that simple 😛
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T. C. Clark
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Silicon Valley Bank was not an average bank. The management was making millions in contributions to “woke” causes. Banks should make no charitable contributions….the banks are supposed to make profits for the stockholders who can make contributions if they choose to….and SVB was heavily involved with tech firms. Government and the bank risk management was too lenient…..it was humans who did it….as opposed to a natural disaster like an earthquake….history is mostly about human and natural disasters.
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