In this video, we'll explore the principle of fractional reserve banking and how it impacts our banking and monetary system. Did you know that your money in the bank can literally disappear if everyone decides to withdraw their deposits at the same time? We'll use the example of Silicon Valley Bank, the 16th largest bank in the United States, to illustrate this concept.
We'll explain how banks only retain 10% of your deposits and use the other 90% for investments, which means they won't have enough money to pay all their depositors if there's a bank run. We'll also discuss the risks of investing too much in hype activities and not diversifying, drawing lessons from the collapse of Silicon Valley Bank.
If you're interested in real estate investing, we'll offer some advice on how to invest wisely and avoid hype marketing. We'll suggest that you go for something safe and stable and only invest in properties in climates that you're familiar with. And if you're thinking of investing in overseas property or trying to do passive doubling or passive income with little to no money down, we urge you to think again.
So, whether you're a seasoned investor or just starting out, this video is a must-watch to learn about the risks and rewards of banking and investing in today's economy. Thanks for tuning in, and don't forget to subscribe to our channel for more informative content!
#FractionalReserveBanking: How Your Money in the Bank Can Disappear #BankingSystemRisk #InvestWisely #RealEstateInvesting #StayInformed
Fractional Reserve Banking
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