/biz/ - Business & Finance

>>18918831
its disinfo and whitewashes jews
but still entertaining.

to be fair, giving trillions in gibs to central banks for destroying the economy isn't really "capitalism". even though both GOP and dems do the same thing,

Neo-liberalism isn't capitalism

>>18918831
Normie shit painting the banks as the bad guys.
It's the equivalent of saying the American defeated the Nazi in WWII thanks to DDay : basis for story is factual, but the facts and narrative are so streched for political propaganda purpose that the message become a lie.

In WWII, Nazi Germany was defeated by russian blood and winter, with the western allies swooping in at the end to prevent an Europe fully owned by Stalin (hence the re-interpretation of the fact later, can't have people associate USSR with anything positive).

During the subprime crisis, banks are presented as the bad guys, but the real guilt lies within the government and institutional investors.
Your pension fund (hence, >>YOU) want high returns, and the govt want poor people to not be poor because poors are thankful to the govt if their quality of life increase. Hence, banks are legally incentivized to give those subprime mortgages (They just sell them, don't carry the risk after), and are financially incentivized because of how high returns they have.

As long as the system work, people don't like the bank, because "it's useless".
As soon as the system collapse, everyone hate the bank, because "it's their fault".

Guess what faggot ? A bank is the only thing that stand between you and government wasteful and tyrannical allocation of resource, zimbabwe/communist style. Without a bank, your salary would very fast have to compete with an indian work+shipping cost, which is the actual FAIR remuneration of your Job. Not so long ago, before the financialization of the common people, life was cheap in the west too. But you are enjoying a job that pays more than a dollar an hour. Without the (((System))), we would all be pajeets.

Pic related is based and much more accurate on the finance world inner working.

>>18920223
Based

Reminder the true company to blame was AIG

AIG insured all these shit mortgages, shit bonds and shit tranches and was insuring everything they could get their hands on.

banks, knowing they could give anyone and everyone a home loan and if they defaulted on it AIG would pick up the slack, gave anyone who came knocking on their doors a loan.

But what happens when the company that insures you goes bankrupt because so many people, who should never have been given a loan to begin with, start defaulting on their mortgages? AIG collapses then big banks collapse. poof

in reality, it was poor people's fault. yes, the banks were predatory and greedy but poor people not paying their bills fucked everything up

>>18920326
>If you fall it's fault of the cliff
No. Poor people are the "environment". They just saw an access to financing, which was relatively riskless for them (Can't catch a downside if you have no capital).

AIG role was just being a cog, the same way that Deutsche Bank is now basically insuring all other Eurozone banks. If AIG was not CDS'ing subprimes mortage, it would have CDS'ing turnips, or whatever is the hot thing this year. You make a lot of money in premium, until the black swan and then the govt bail you out, while everyone in a suit at the company enjoyed fat bonuses for the decade before that.

The issue is that the government has an incentive to provide easy liquidity to the poors, or generally speaking, "transferism". People vote for who promise them the most wealth.
The issue is that this wealth has to come from somewhere...

https://en.wikipedia.org/wiki/Government_policies_and_the_subprime_mortgage_crisis

>>18920223
Banks demand the public offer them loans on the banks terms, capital which they then invest in the most deranged fashion.

Banks are, and have always been, a blight on civilisation.

With crypto, bankings sole use-case (the safekeeping of physical currency) will become obsolete.

At this stage, continued defense of banking will amount to nothing more than arseblasted Jewish kvetching.

>BIS Makes it illegal to reduce exposure to mortgages
>Housing bubble
>market corrects itself via derivatives
>blame the existence of derivatives for the bubble

>>18921009
This also the Basel regulations stipulated real estate was AAA credit worthy on par with USA sovereign debt despot it being total dogshit

>>18918831
I remember when there was capitalism
before the Fed

>>18920966
>Banks are, and have always been, a blight on civilisation.
>With crypto, bankings sole use-case (the safekeeping of physical currency) will become obsolete.
Okay, you are either a teenager or retarded.
Banks are not needed for the safekeeping of physical currency. A shovel and a map do good enough of a job for that.
You can also argue that banks are also necessary for the tranfer of currency in a non physical fashion. Non-banks (like Revolut) or any other e-money business can do that just fine without being a Bank. Heck, that's how the Templars got so rich in the first place.

No, what bank actually do is allowing investor to get riskless money and entrepreneurs to create wealth.

Every entrepreneur that create a company have a high risk of failing, but from the early money invested in such young companies that is a success, you have high returns. Let's call this return R. On average, investing in a wealth creating business (anything goes from your kebab to facebook...) has a rentability of (average of all theR) * failure rate = r (or >r<entability of investement).

On the other hand, if you own a nice amount of cash, you want it to not lose value in the long term, and even better, maybe you want it to gain value. At the same time, you absolutely don't want to run the risk of losing it all because of a single bad investment. The most "riskless" money you can own is governement debt. Sadly, (and despite what far left winger says), govt debt is in limited supply, and it's return are not great (to the point that it's negative for germany...). Let's call this "riskless" money retun i, or the rentability of rent>i<ers.

What the banks/the financial system in general is doing is providing people that can't access >i< access to >r< by multiplying the loans to companies/individuals, hence spreading the risks. Banks make money by taking a cut on the spread between r and i.

>>18921158
>cont
Issues arise when r (the rentability of investing in loans to business and individuals) get closer to i :
Banks margin collapses, and more and more people want to invest in i : LESS money is being invested in the real economy than before, as investors don't want to accept the risk of r (even mutualised) when they can have I.

That's why the "borrowing rates" of nations matter, because every other loan has to offer better return than it in order for investors to be attracted to them.

Once investors don't invest anymore, shit SERIOUSLY hit the fan. Instead of having the ability to "buy now, pay alter", everything need to be fully funded, which lead to MASSIVE inefficiencies, as ressources are now in depots, piling up until whatever amount they need to be at before being traded away, instead of smoothly circulating.

Think of a road-toll that only open once the 100.000 cars it need to do every day are waiting behind the barriers.
This is what a fully-funded economy without the ability to borrow money look like.

>>18918831
This sort of film is the western equivalent of shoujo (anime intended for girls). The subject doesn't matter so much as the eyelid fluttering of the male actors.

>>18920223
Based and Financépilled.

>>18921535
>anime intended for girls)
does this even exist