So clear! Thank you. You should teach college. My niece is a college senior and has no understanding of any of this! One question- My husband got an SBA loan a year ago. Says he didn't understand it was quarterly adjusted with NO CAP! We've gone from 6.5 to 10.5 on 600k. It's killing the business and eating all profit. We are now trying to sell but do you have any advice?
Thank you Lane for explaining this. I skeptical of retiring this coming August. After 42 years vested in the stock market I have a few dollars saved. I'm hoping things will be some better.
Hi thank you for you explain to us my question to you please I am in SSI like you know everything is expensive I need to go back to work and my health is not good so what do you want to do to keep my benefits please thank you
So the interests of the banks are earning on the money that belonged to the people who bank in the bank? Where is that interest going to who's getting paid on that it's definitely not the people who have their money in their bank account is that the bank? Whose earnings interest for themselves because? That should be against the law that should go to the person who's got money in the bank that the bank is using to give out loans and stuff. To other people.
Hi Jessica. All businesses must make a profit to stay in business. They sell something to make that profit. They buy wholesale from a supplier and sell at a higher price to customers. Banks loan money, that's what they "sell." Depositors are the "suppliers" and borrowers are the "customers". The interest people pay on those loans is the bank's profit to pay for their buildings, wages to staff, taxes, utilities, etc. If depositors take their money out, or if people don't want to borrow money, banks don't make enough interest money to stay in business and they fail. If suppliers can't supply or customers don't want to buy, the business goes out of business. That's my understanding anyway, could be wrong though.
Irresponsible is pretty much an understatement of how our government has handled the financial dealings it is entrusted with. Too many years of low interest rates to spur people to buy land or stock or whatever instead of fair interest rates to encourage people to save. Government doesn't make much off of interest paid to you, but buy some land and sometime sell it different story. Makes one think they might of had something in mind when they play this game?
I think banking is safe overall, but there are a few “bad actors”. I don’t think SVB was a regulatory “rollback” issue, I think the FDIC dropped the ball on oversight.
Great summary Lane. I was just asked about this!
I heard someone say that the FDIC does not actually have enough money to cover all the (250K) money in bank accounts.....is that true?
Excellent Summary. Thank You
Thanks Guy!
You’re welcome dude!
Great information.
Excellent! You summed it up perfectly for everyone to understand!! Thank you!!
So clear! Thank you. You should teach college. My niece is a college senior and has no understanding of any of this!
One question-
My husband got an SBA loan a year ago. Says he didn't understand it was quarterly adjusted with NO CAP!
We've gone from 6.5 to 10.5 on 600k. It's killing the business and eating all profit. We are now trying to sell but do you have any advice?
Thank you Lane for explaining this. I skeptical of retiring this coming August. After 42 years vested in the stock market I have a few dollars saved. I'm hoping things will be some better.
The problem with the fdic is ok we'll pay you but it's going to take "x" amout of time. Or an installment plan.
Hi thank you for you explain to us my question to you please I am in SSI like you know everything is expensive I need to go back to work and my health is not good so what do you want to do to keep my benefits please thank you
So the interests of the banks are earning on the money that belonged to the people who bank in the bank? Where is that interest going to who's getting paid on that it's definitely not the people who have their money in their bank account is that the bank? Whose earnings interest for themselves because? That should be against the law that should go to the person who's got money in the bank that the bank is using to give out loans and stuff. To other people.
Hi Jessica. All businesses must make a profit to stay in business. They sell something to make that profit. They buy wholesale from a supplier and sell at a higher price to customers. Banks loan money, that's what they "sell." Depositors are the "suppliers" and borrowers are the "customers". The interest people pay on those loans is the bank's profit to pay for their buildings, wages to staff, taxes, utilities, etc. If depositors take their money out, or if people don't want to borrow money, banks don't make enough interest money to stay in business and they fail. If suppliers can't supply or customers don't want to buy, the business goes out of business. That's my understanding anyway, could be wrong though.
Irresponsible is pretty much an understatement of how our government has handled the financial dealings it is entrusted with. Too many years of low interest rates to spur people to buy land or stock or whatever instead of fair interest rates to encourage people to save. Government doesn't make much off of interest paid to you, but buy some land and sometime sell it different story. Makes one think they might of had something in mind when they play this game?
Our future
1 full retirement age change to 70
2 housing bubble crash
3 digital currency
I think banking is safe overall, but there are a few “bad actors”. I don’t think SVB was a regulatory “rollback” issue, I think the FDIC dropped the ball on oversight.