Name: 5 Truths About Money That Banks Don't Want You To Know
Uploaded: 2021-11-23T18:20:30.000Z
Duration: 12 min 42 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

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The 2008 crash was so severe that it still considered the greatest financial crisis in recent history.

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The United States lost $2 trillion 8.7 million jobs disappeared in a glimpse of an eye that meant that millions of people couldn't feed their families especially those who lived paycheck to paycheck.

Even the Fed people lost faith in the banks because they had misused their power and destroyed the economy as a result of that.

Banks were the major reason behind the 2008 crash.

Well this might sound like an exaggeration.

It wasn't for many who struggled to put food on the table but that's not what made people hate Wall Street even though they were mostly responsible for the crisis by giving high ratings to junk loans or bad loans in simple terms take A I.

For example one of the biggest financial institutions in the US.

Or to be more precise one of the biggest until 2008.

Ratings to loans that they knew were junk loans and their borrowers will default.

You may ask just to make money out of thin air A.

Made dozens if not hundreds of billions of dollars.

But was one of the main drivers of the crisis literally if Eggy did not give fake ratings.

The 2000 and eight crush wouldn't be that bad or wouldn't happen in the first place.

Although the government didn't bail it out.

back then Joseph Cassano who was given the nickname.

The men who crashed the world earned an estimated $34 million 2008.

You literally destroyed a company that existed for almost 100 years.

You send the greatest economy in the world to a recession and left millions of people jobless not just in the U.

Economy is connected deeply with the rest of the world.

Especially europe Countries like Greece haven't fully recovered yet from the crisis that happens over a decade ago.

And when you get fired you get a $34 million dollar bonus.

Why on earth do such selfish people get in such positions in the first place?

Unfortunately that is not the question of this very are.

But it illustrates to us how greedy these people have become.

That's why so many people came to hate Wall Street or the banks in general.

However that is still the tip of the iceberg.

They're still far more facts that ordinary people don't know about the banks.

How do they cheat the government or how rich people used banks to make billions of dollars out of thin air and avoid taxes?

We'll answer all of these questions and many more.

So give this video a thumbs up and let's dive in.

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Since Wells Fargo wasn't deeply involved in the 2008 crashed like A I.

It created a reputation of a stable bank but that didn't last long.

At first glance it seems like Wall Street learned its lesson and would no longer get involved in anything fraudulent.

In 2016 news broke out that Wells Fargo created millions of fraudulent savings and checking accounts on behalf of its clients without their consent.

Wells Fargo clients began to notice that fraud after being charged and anticipated fees and receiving unexpected credit or debit cards or lines of credit.

Initial reports blame individual Wells Fargo.

Branch workers and managers for the problem as well as sales incentives but the plane was later shifted to top down pressure from higher level management to open as many accounts as possible.

Just imagine the bank or the place to whom you have trusted your money is purposefully creating a fake account using your name and your personal information to make money.

That is not just a fraud but disgraceful.

It is normal to sell different financial products to your customers.

But in this case supervisors pressured their employees to open as many as 1.5 million checking and saving accounts and more than half a million credit cards without customer's authorization, employees were encouraged to order credit cards for preapproved customers without their consent and to use their own contact information when filing out request to prevent customers from discovering the fruit.

Employees also created fraudulent checking and saving accounts, a process that sometimes involves the movement of money out of legitimate accounts.

The creation of these additional products was made possible in part from a process known as pinning by setting the client's pin to four Zeros.

Bankers were able to control clients accounts and were able to enroll them in programs such as online banking.

How it is supposed to trust banks after that, that's why people are turning to crypto Wells.

Fargo has first find $100 million in september 2016 $6.1 million in customer refunds due to inappropriate fees and charges almost half a million dollar settlement for a shareholder class action lawsuit by december 2018 Wells Fargo had already paged $2.3 billion dollars in settlements and consent orders, but no one went to jail.

In fact, top executives still managed to earn their bonuses that were worth millions of dollars number two borrowing money during high inflation.

The system is designed in such a way that the wealthier you are, the easier it gets to get even more wealthier and that's not because poor people have no other choice but to spend the money they earn on their necessities and rich people invested because they simply have too much money, But rather because rich people are less likely to default on their loans in 2020 when the world economy went down, the government distributed stimulus bills.

Finally, the Fed or the government did something to improve the lives of average people, not the Wall Street, but gave money to ordinary people.

The only problem was that's how it appeared.

In reality rich people learned the lesson from the 2008 crash.

If the government directly bills you out, people will start hating you.

So make it seem as if the government isn't bailing you out.

When the Fed inject trillions of dollars into the economy, you know that inflation is going to fly to the roof.

You don't have to be an expert to understand that home prices alone jumped by over 20%.

So if you borrow a billion dollars just 1%, which is exactly what the Fed did.

It loaned money to the biggest companies almost like 0%.

These companies took the money and purchased assets and just waited for inflation to do its job.

Think about it for the sake of example, let's say you borrow $100,000 to buy a house at 2% mortgage rate.

If home prices rise by 20% next year, you can sell that house for $120,000.

Pay back the $100,000 loan to the bank plus $2000 worth of interest and you have earned $18,000 simply by waiting for inflation to do its job.

Imagine for a moment when the same thing is done with trillions of dollars, which is exactly what happened in 2020.

Number three banks help reach people avoid taxes.

When you hear the news that Jeff basis has a network of $200 billion or Elon musk has a network of $300 billion.

You have to keep in mind that they do not have $200 billion of paper money stashed in their bank accounts or backyards, But rather the amount of shares they own in their company's worth that much selling their stocks isn't as easy as it might seem.

First of all, they have to pay a lot of taxes on that, which could be 20%, out of $100 billion is $20 billion.

No one wants to pay that much taxes secondly, an oversupply of that particular stock in the market will push the price down.

So how do you spend billions of dollars while not selling your stocks?

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5 Truths About Money That Banks Don't Want You To Know

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