In this video we are walked through the scenario of a bank run from the perspective of the banks balance sheet. Commercial banks essentially hold assets or bonds, loans to customers, shareholder equity or investments, and customer deposits.
They state that a recession or crash is inevitable, but predicting when is impossible due to the amount of manipulation. The largest world banks do not have close to enough cash on hand to give everyone their money. The only thing supporting the banks is peoples faith in the system itself.
The video touches on JP Morgan, Wells Fargo, Goldman Sachs, TD, Alpha Bank, and Credit Unions. All institutions on hand only have only pennies on the dollar respective to total deposits. If everyone withdraws all their money these institutions would crumble respectively. “If your money is in the bank, it’s not yours, it’s theirs.” They suggest private vaults, gold or silver, and crypto currency as alternatives.
Banks operate on incredible risk, as they are no longer simply savings institutions. Where they now operate as investment banks our money is marked as a liability in their books because they can do almost anything with it. A man in Manatoba Canada was once told at a credit union that to withdraw a million dollars he would have to take out $100,000 each year to do so.
Through this video we come to learn more how banks work. Banks want cashless society’s so they own the money and have control of it. Bank runs ultimately can take the banks down altogether.