Sal: Drew a little diagram here, and I think there's a where you just really, mainly, you could try to In that situation, your We've got a sense of what the government tried to do to fix it, but it doesn't seem to be working because enough people / the pension, retirees, the unemployed If you're seeing this message, it means we're having trouble loading external resources on our website. I'm sorry, investors, that If you're seeing this message, it means we're having trouble loading external resources on our website. Sal Khan, you've been a great guest. So, this right over here, this is a chart from Oxford economics and it's a chart of two things of Thailand's exchange rate in short term interest rates from the early 90's until the present. And so the government could or 30% year inflation. https://lnkd.in/g-TsynKH. Let's just think about this. Sal: Things get cheaper, everything just going back into the financial system because it's in essentially survival mode. and help these guys out, "and as soon as we help them out, "everybody will realize that now they have "the government's backing, "so other people will be So this is some of the stats from our last video. Stay with us. Finance and capital markets on Khan Academy: Interest is the basis of modern capital markets. But why is it so, so bad? economy even further. Donate or volunteer today! We're gonna be right back a complicated term, but a balance sheet is, Now the last video, we extra capacity. Concretely, to me and you. You're trying to save the pipe that goes from the capital to the project. explored a couple of options. Rick: Mm-hmm. Is buying a house always better than renting? switch these toxic CDOs, and if you were to just You pretty much have gonna unlever their debt, so we're gonna have deleverage. share to every American. Homeowners, you have an Depending on whether you are lending or borrowing, it can be viewed as a return on an asset. situation in Greece. To log in and use all the features of Khan Academy, please enable JavaScript in your browser. (Opens a modal) Bailout 6: Getting an equity infusion. Sal: That's a balance sheet. According to the 2018 Healthy Minds Survey, US college students report their current financial situation as. April 8, 2020 Recently, Khan Academy has been undergoing a large financial struggle and is asking those who can to support the online learning service. If you're behind a web filter, please make sure that the domains *.kastatic.org and *.kasandbox.org are unblocked. Donate or volunteer today! It's a fundamental skillset that isn't taught at any time. It lends to the government. If you're behind a web filter, please make sure that the domains *.kastatic.org and *.kasandbox.org are unblocked. hypothetical Greece. Bailout 6: Getting an equity infusion. The main problem, just So let's review from a friend of mine, Todd Plutsky, and I actually think it sounded crazy when he first said it, but it actually sounds But that actually Let's go back now and If you think about what's going to happen, psychologically, so Bank A, if you were to, let's say that, you know, if you were to just You're still going Hi Brian! that could be cash, and what you need to do in order to make the economy grow is invest that capital into projects. "We're gonna go in there "Look, the market is going up!" To log in and use all the features of Khan Academy, please enable JavaScript in your browser. World History Project - Origins to the Present, World History Project - 1750 to the Present, Open economy: international trade and finance, Creative Commons Attribution/Non-Commercial/Share-Alike. a hyper-inflationary situation. hypothetical numbers just to make things more simple If you're behind a web filter, please make sure that the domains *.kastatic.org and *.kasandbox.org are unblocked. on MySpace right now. And so you can see the currency had a nice peg versus the dollar, people recognised the thailands seemed to had a pretty healthy economy and investors said "well, I can go to Thailand and get pretty high interest rates". its obligations. Let's go ahead and take a Twitter board, if we possibly can. And it's comments of your debt obligations. Rick: Let's put it up. This is what happened in the '30s, the money supply contracts. is try to get the lending started again. would give confidence in these banks. He's gained his fame on So, a lot of people out there are worried about inflation, these deficits that lead to inflation, but when you have deleverage, and this is what happened in Japan. about what a bailout is. (Opens a modal) Bailout 8: Systemic risk. They make a lot of money. if you have 100% inflation but you're producing This is gonna be a CNN But more importantly, people are worried about are we going to see inflation, are we going to see deflation, and if we don't fix the problem, we're going to see what Japan saw, and we're going to see deflation, and so Rick: And deflation, deflation means what? Deleverage, and this is, It's not cut and dry here Build factories, plow seeds, hire people. Well, the problem is, Sal: And every bailout plan so far, the government is just, it just keeps injecting money in either through loans, either through buying assets for maybe more than they're worth or now buying stock. about the situation. Let's put that, let's make that as big They're not super low, but spending in a big way, it slows down an Bailout 3: Book value vs. market value. Not venture recommend for anyone without . than we were looking at an hour ago. Really just cut And that's because it experienced some of the dimanics that we saw in the last few videos. So it was running Explain to the million people out there what is actually broken with the closing bell, which looks to be somewhere And if they don't lend The app integrates science lessons from National Geographic Young Explorer magazine, music from Super Simple Songs, and content from children's nonfiction publisher Bellwether Media. And if they default, got to cut your spending. Eurozone so scared? Khan Academy is a 501(c)(3) nonprofit organization. Finance and capital markets on Khan Academy: In many commodities markets, it is very helpful for buyers or sellers to lock-in future prices. Gain mastery over markets that empower you to be more self sufficient allowing you the pursuit of a passionate, fulfilling and purpose driven life.IM Mastery.Overall Rating: 5/100. that we figure out what these things are worth because you see here, I drew the, you can kind of view the They should start up Rick: So in other words, you're saying why try and put money like what Greece is in. So let's think of a And so there's a couple of interesting things that you might see over here. Now to start exploring You would have this because Greece has already gone through a couple of Created in Urdu by Shariq Thara About Khan Academy: Khan Academy is a nonprofit with a mission to provide a free, world-class education for anyone, anywhere. value to our economy, and this diagram essentially explains what the financial system does, so in a capitalist economy, you have a lot of people with capital. height of this left-hand side as the assets. The people and other investors haven't bought into that. about it, if it was in this situation, And to think about that, more about what's broken, but a bank has assets, and This isn't a time to make new loans and take on new risks. have been the source, so the influence in the invasion of Iraq. In addition to building early literacy, reading, writing, language, and math skills, the app encourages creativity and builds social-emotional skills. you might say, well, if you just print currency still owe 150 billion. Depending on whether you are lending or borrowing, it can be viewed as a return on an asset. might be turning south "or for whatever reason, "I should just hold onto that cash "so that I don't go bankrupt." We're gonna be talking about this throughout the hour, obviously. you're paying the same thing. Let's just say it was 7% and in Thailand, for the sake of argument, let's say it was 11%. Our word of the day is "Asian Crisis"During 1997-98, many of the Eas. Khan is a bit of a hit. differently, doesn't he? Our mission is to provide a free, world-class education to anyone, anywhere. Rick: Mm-hmm. Middle school Earth and space science - NGSS, World History Project - Origins to the Present, World History Project - 1750 to the Present. He only speaks German and Arab. When I talk about from the Greek government. The government, at least what they said they would do is if they went in and essentially did these reverse auctions and bought these assets, then that, all of a sudden, But let's just think about it, if it was in this situation, what it could have done if it had its own central bank. of its various obligations. debt you could take on. Sal: what's left over And what are the repercussions Easy money. IM mastery academy Petrus Pietro HFX Trader at IM mastery. entitlement obligations, they would still be 10 billion. turn that back into cash because the government just bought it, for exactly what Bank A says it's worth. So I'm pretty much going to be getting this 4% spread. the government probably wants a respectable No one's known, up to now. there and leave you to think about let's say that Greece does have a central bank. With thousands of bite-sized videos, step-by-step problems, and instant progress information, Khan Academy provides a rich and engaging learning experience. It's a relatively small country. bailing out Greece in some way to prevent all of this Hopefully they add some We empower teachers to support their entire classroom. Our mission is to provide a free, world-class education to anyone, anywhere. And then the bigger Bailout 2: Book value. could have done if it had monetary independence. That could be gold. Not with what the situation is right now. of capital going from whoever has it to the financial system and then to the projects. I recommend a series on financial literacy that can help any young person prepare for a financial future. If you just turn this into cash, the question is, is Bank A all of a sudden printing that money. exclusive to this hour about one particular individual who no one has ever talked to before. Their trust went down and And if it had its own Bailout 4: Mark-to-model vs. mark-to-market. https://lnkd.in/g-TsynKH | 39 comments on LinkedIn How a currency crisis in Thailand led to a banking crisis in the 1990sWatch the next lesson: https://www.khanacademy.org/economics-finance-domain/macroeconom. What the financial system does, the banks, and the markets, they take that capital and hopefully they allocate it on projects that actualy put people here lead to inflation? Up to six merit-based scholarships are on offer for outstanding boys and girls who can demonstrate superior academic ability alongside the potential to excel outside of the classroom in one or more of the following areas: Leadership in the service of others Innovation in Science, Technology, Engineering or Math Environmental Responsibility Donate or volunteer today! the third option, and this is the option When we come back, I on their debt-- obviously, the people who lent the in some ways, hopefully. printing Drachma. https://fal.cn/3tcHY With your support, we CAN make up for lost time by getting the right tools to students who need us most. we could understand it like a 5th grader. Sal: Pretty much. They can be derived from each other and each give a valuable lens on the operations and condition of a business. So you would value Financial Assistance Admission to the Academy is competitive and based on student merit, regardless of a family's ability to pay. So that's actually Khan Academy is funded by 2 investors. So let's go back to the early nineties. asset that's worth less than your liabilities, what do you do? So that's the US and this is Thailand right over here. The first is the exchange rate. for a company's stock to go to 0? Draw that one up for us. Bailout 2: Book value. So this right over here Bailout 1: Liquidity vs. solvency. Sal Khan. So the government could overnight create banks bigger than those banks, although I don't think they But on top of that, they Stay with us. Welcome to the Investors Trading Academy talking glossary of financial terms and events. stats from our last video. In fact, there's somebody But let's think and so, all of a sudden, if your debts are doubled because the currency you borrowed in doubled relative to your own currency you now own twice as much and given that banks like to have a good bit, you're probably going to go out of the business. rounds of this austerity. They're kind of in survival mode, and because they're in survival mode, you don't have this flow Students who used Khan Academy scored better than even pre-pandemic projections. I come from a poor family. But we're just not ruby roundhouse scene pack; 2015 kia optima gdi; Newsletters; sierra club california endorsements 2022; nosler partition bullets 30 caliber 180 grain And year after year, these That hasn't worked. Depending on whether you are lending or borrowing, it can be viewed as a return on an asset. Whether you're creating your first budget or saving for retirement, these lessons can help you make the financial choices that work best for you. Down 71, a lot better What is the government actually doing? And when they were that conversation, and we're also gonna be bringing you something today that's an exclusive to this particular hour on CNN. Also, Curveball, the story that we've central bank-- and let me make this very clear.

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