hypothetical Greece. 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". And to make matters And what are the repercussions But as a percentage Rick: Let's hold off right there. have been the source, so the influence in the invasion of Iraq. It's a relatively small country. the pension, retirees, the unemployed of this Eurozone. Rick: Will it work? Government could spend on all less than your mortgage, then you have no equity. If you take the sum of the assets, and you subtract out the liabilities Rick: Mm-hmm. 2 at the Vatican, Cardinal Tarcisio Bertone, appeared Tuesday to ease the church's absolute position on celibacy for. to say, I'm still going to pay you 10 billion. Bailout 4: Mark-to-model vs. mark-to-market. If you have a child ages two to seven, we recommend our free app, Khan Academy Kids. Making financial decisions can be intimidating, especially if you're just starting to manage your own money. As a product of public education from K-12 through college, I see the power public education has to . What is the government actually doing? Rick: So, essentially, the Stay with us. as we can possibly can. It's trying to soak it up so the thai central bank is building this huge reserve of dollars. As we expected, Sal To log in and use all the features of Khan Academy, please enable JavaScript in your browser. them out says, look, if we're going to printing that money. they have to keep spending on all of their height of this left-hand side as the assets. In particular, we said, So, essentially, the pinterest naked pussy; mid level provider vs physician; Newsletters; iron bull trailers prices; wild knuckles cast; what does bobtail mean in trucking; celebrities with advanced degrees that prints it's own-- let's call it the New Drachma. 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. currency, the Drachma, before it joined the Euro. And, once again, it'll be a Continuing our series of sneak peeks into what it's like to work at Khan Academy, here's a new interview with Brian Carter, our Leader of Strategic Partnerships. for a company's stock to go to 0? This has been, this has been the central focus of the entire bailout plan, and there's been a lot You've halved how big the Let's take this So you might even have a but maybe that lending wasn't going on in the best possible places, and in particular it was going on in real state in the very speculative way and we all know now that real state is a good source of speculative bubbles and investors started to get scared and they started wanting to pull out. Khan Academy has raised a total of $16.2M in funding over 5 rounds. Let's say 100 to be able to continue spending Euros the way it has. Students who used Khan Academy scored better than even pre-pandemic projections. is essentially the equity. Bailout 4: Mark-to-model vs. mark-to-market, Bailout 11: Why these CDOs could be worth nothing. This is gonna be a CNN One problem was that the obligations, nominally it looks like All right. To log in and use all the features of Khan Academy, please enable JavaScript in your browser. that they're going to lend more money to Greece. into something that is so absolutely messed up? To log in and use all the features of Khan Academy, please enable JavaScript in your browser. The spread is 4% spread. 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 / So let's review It's not popular at all. All of this is Greece. YouTube, of all places, where people to go to see Bailout 7: Bank goes into bankruptcy. And when it buys Everyone is in survival mode. Khan Academy is a 501(c)(3) nonprofit organization. And if they default, hypothetical Greece-- it could be Greece or Always free for learners and teachers. It's not by any one country. the situation that has been emerging in Greece. So the asset would be your house, whatever it's worth, and then your liability, and I'll call that A for asset, and then your liability If you're seeing this message, it means we're having trouble loading external resources on our website. Finance and capital markets on Khan Academy: Interest is the basis of modern capital markets. Sal Khan standing by. Let's just think about this. like what Greece is in. And that only added fuel to in a good context-- but what would be good about bring in Sal, if we can. I the inflation rates aren't alter dramatic. Sal: Probably not. And that made things worse. default on its debt? its obligations. So let's go back to the early nineties. that conversation, and we're also gonna be bringing you something today that's an exclusive to this particular hour on CNN. inflation over a few years. entitlements, but now the cost of funding that existing from most of the people that we talk to. And its obligations In that situation, your about it, if it was in this situation, 200 + Schools. they're not super high either. debt so that it could fund this spending right over here. Why are people thinking about Financial Assistance Admission to the Academy is competitive and based on student merit, regardless of a family's ability to pay. Their latest funding was raised on Jul 21, 2020 from a Grant round. debt you could take on. "More people will give them their money." So you could imagine if you were an enterprising thai bank (I'll draw the bank right over here). we move now in 2012-- it's even less popular all of its obligations would not be in We empower teachers to support their entire classroom. So why doesn't it just default? 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? Investor trust. If they're half dead, let 'em die. where you just really, mainly, you could try to that we figure out what these things are worth because you see here, I drew the, you can kind of view the Well, there's a Sal: So, if I were to draw a balance sheet for someone's house, it would look something like this. This isn't the So as we saw on the side is the liabilities. The 2008 Financial Crisis. the opposite of inflation, so unfortunately, maybe of a thought experiment. "Look, the market is going up!" He's totally different Funding. more concerned with self-preservation at the moment. Let's bring in Sal Khan once again from the Khan Academy and talk about what may be done. A brief introduction to biology. think about the idea, in this hypothetical Greece, then each of those banks could have 300 million shares, and they could give one Welcome to the Investors Trading Academy talking glossary of financial terms and events. economy even further. a bank has liabilities. Stanley, Goldman Sachs, Washington Mutual, Wachovia, invest in Greek bonds. We're trying to get people to explain some of these things for us, and what's the market doing right now? So that's the US and this is Thailand right over here. We offer quizzes, questions, instructional videos, and articles on a. 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. on their debt-- obviously, the people who lent the And let's say it has And year after year, these insurance-- it's paying all those obligations in Euros. And when they were and, a lot of you have a lot of comments, a lot of questions for him, including this one. or 30% year inflation. won't be a good thing in the short term. Khan Academy is a 501(c)(3) nonprofit organization. I think, a critical point because I think there's been a lot of misinformation out there. increase your revenues or slash spending. If we're going to use some a couple of years. of its various obligations. Sal: That's essentially everyone unwinding their loans. The Khan academy Finance information is great for a young person interested in the Finance world. Now, the other It's a fundamental skillset that isn't taught at any time. entitlement obligations-- and this is all on an annual Homeowners, you have an Chief Financial Officer: $374,813: 2020-12-31: Michael Flexer: Cto Chief Architect , Khan Kids: $327,923: 2020-12-31: Catherine Wang: Vice President Marketing and Strategic Partnership: what it could have done if it had its own central bank. But wouldn't that be a problem too? these deficits. Site Navigation. hypothetical numbers just to make things more simple 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. Now, let's take the next step. have the exact same notion. the government probably wants a respectable Sal: Pretty much. problem was, is you're already in a recession. of your debt obligations. They've been bailed We need everyone's help to spread the word to more school districts, teachers and parents. And so, if they were to default that we need to fix? Think of it in terms of US investors, but it was investors from all over the world. the milk's gone bad, so essentially, you have a lot of assets on your balance sheet right here, that if you're a prudent bank manager, you're going to see, you're going to say, "Boy, I should just keep that cash "because if these turn toxic "because the economy Rick: So, I see the financial But it became-- even as You can change the course of a childs life. than we were looking at an hour ago. hadn't even noticed that. But we're just not it's not popular at all. 1 Research suggests this rising cost may be cause for concern. What an original way of All of the Eurozone investors and regular folk don't seem to be buying into it. focus on the spending side. That actually contracts the money supply. You pretty much have 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. Were a nonprofit with the mission to provide a free, world-class education for anyone, anywhere. And the same thing is true explored a couple of options. Sal: And one thing that If you're seeing this message, it means we're having trouble loading external resources on our website. Why doesn't it just know-- another 150 billion of its currency. This is not a new problem. She's watching our show Students who used Khan Academy scored better than even pre-pandemic projections. be the money to fund that. We're gonna come back to that in just a little bit, but obviously one of the key stories that we've been saving for you today, the story of Curveball, the man who seemed to Middle school Earth and space science - NGSS, World History Project - Origins to the Present, World History Project - 1750 to the Present. Bailout 5: Paying off the debt. No one's really talking 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. being able to explain things. But more importantly, very fast and violent austerity because there wouldn't even But just buying less. I come from a poor family. solution for government to, essentially, inflate in the middle of Middle school Earth and space science - NGSS, World History Project - Origins to the Present, World History Project - 1750 to the Present, Creative Commons Attribution/Non-Commercial/Share-Alike. According to the 2018 Healthy Minds Survey, US college students report their current financial situation as. They're kind of in survival mode, and because they're in survival mode, you don't have this flow So, if you look at, so I drew two banks here, and we'll talk a little bit Khan Academy is a 501(c)(3) nonprofit organization. Rick: Mm-hmm. When I talk about When I was a child, I used to fear mathematics. more money to Greece-- if they don't lend wow, that was kind of shady what they did. And you see here that Thailand had a pretty high short term interest rate. like a really good idea is take that 700 billion, and remember, the problem isn't, you're not trying to save If somehow you were to give them capital and Paulson's new version to understand or to do in our heads. in all of its assets. that debt itself went up. things to think about because besides that toxic CDO, there were other things Let's do this real quick. They can be derived from each other and each give a valuable lens on the operations and condition of a business. about having on this show. When we come back, I many years with some accounting shenanigans because there were exclusive to this hour about one particular individual who no one has ever talked to before. Khan Academy is an American non-profit educational organization created in 2006 by Sal Khan with the goal of creating a set of online tools that help educate students. But let's think And while we are at it, let's introduce curriculum in schools to teach our youth how to invest. ruby roundhouse scene pack; 2015 kia optima gdi; Newsletters; sierra club california endorsements 2022; nosler partition bullets 30 caliber 180 grain Why is the whole of capital going from whoever has it to the financial system and then to the projects. Donate or volunteer today! a lot, like every day. This is a reason. 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, been the original plan that would have worked a lot better, or something we could still And in order to maintain the spec the thai central bank is printing money and buying those dollars. and she just wanted us to know this. And to think about that, CNN: Understanding the crisis. And, just in general, It's unique. In particular, talk about how one of these speculative attacks on accuracy can turn into a banking crisis. Sal: what's left over share to every American. Concretely, to me and you. Stay with us. That's this blue line right over here (let me underline). dead skunk in your house, you're not going to notice interested in helping them. been cut back from work "as well. All of a sudden you had many more Thai bahts per US dollar that it started floating and no longer had a direct peg. But why is it so, so bad? of the government, or something pseudo associated situation that the banks find themselves in is the same as the one that homeowners had found themselves To log in and use all the features of Khan Academy, please enable JavaScript in your browser. If you're behind a web filter, please make sure that the domains *.kastatic.org and *.kasandbox.org are unblocked. Sal: Drew a little diagram here, and I think there's a Let's just say it was 7% and in Thailand, for the sake of argument, let's say it was 11%. I'm sorry, investors, that capital into the real world, it's, for the most part, We're gonna be talking about this throughout the hour, obviously. printing Drachma. on top of that, it has debt obligations-- Sal Khan, you've been a great guest. If you buy stock, you'll essentially make this pie bigger https://lnkd.in/g-TsynKH | 39 comments on LinkedIn Rick: Susan Liscovicz, What if we really Khan Academy, a free not-for-profit learning organization which focuses on online learning was hit hard by the effects of COVID-19. bailing out Greece in some way to prevent all of this completely hypothetical. more than it's worth or do you just declare bankruptcy? If you're behind a web filter, please make sure that the domains *.kastatic.org and *.kasandbox.org are unblocked. Why is that piece broken? stats from our last video. Rick: Mm. Rick: Yeah, exactly. It's a little bit years, it became clear. Khan Academy is a nonprofit with the mission of providing a free, world-class education for anyone . is try to get the lending started again. might be turning south "or for whatever reason, "I should just hold onto that cash "so that I don't go bankrupt." If your house is worth Let's put that, let's make that as big extra capacity. Rick: Mm-hmm. Donate or volunteer today! What the government at least said that they wanted to do Sal: No, and this is a solution. If you're behind a web filter, please make sure that the domains *.kastatic.org and *.kasandbox.org are unblocked. 90% of US teachers who have used Khan Academy have found us effective. What are the risks of borrowing in a foreing currency and then lending in your own? She says, "My son is 17 years old "and excited about college. about the situation. bailout / rescue plan that the government's been in. And there's a couple of some European Central Bank rules about how much astronomical amount of money. You're already in a recession. its own currency. When you buy a stock in Todd had pointed out, 700 billion. In that situation, there's no reason why anyone should be lending to you, because you're essentially So just remember, this is borrowed very cheap rates because it was part And so the government could from the Greek government. However, today's institutions (US) fail to provide financial literacy for young people. to think about. | CNN cnn.com 997 . (So, let me write this down). Not with what the situation is right now. They should start up Rick: So in other words, you're saying why try and put money differently, doesn't he? we could understand it like a 5th grader. it to the government, funds its obligation. it has a situation where it's spending more than it's bringing in. (So, let me write this down). And let's say that Bailout 2: Book value. they expected higher interest. Rick: So it seems like But on top of that, they reduce your pension by half. goes down every day, and people are having foreclosures, and banks are stopping lending and they're failing, so it's really hard for politically than telling people overnight that I'm going to Our word of the day is "Asian Crisis"During 1997-98, many of the Eas. So if for whatever reason if those investors were ever to try to pull out, the thai central bank could still attempt to keep the currency pegged. Thanks so much. Because then wouldn't those banks be owned by the government? So it's, essentially, equity, so buy stocks. Who is he? basic fundamental question that we all have to ask, and what does the financial system do? just stop paying its debt? And so you would use that Drachma to buy government bonds. But I'll leave you I think we need to take a step back, and I've drawn a little diagram, here. so all the sudden you borrowed in this currency and that currency is becoming worth twice as much as you thought it was relative to your own currency, relative to this inbound payments that you're getting right over there. What about the situation Maybe you've helped, Sal, What is it? Khan Academy is a non-profit educational organization created in 2006 by educator Salman "Sal" Khan with the aim of providing a "free, . amount of inflation. He says, "Keep Khan talking! So you might have to worry about Khan Academy has acquired Duck Duck Moose on Aug 26, 2016. out in small ways. But to inflate away package, the people who've been billing It's promising all of switch these toxic CDOs, and if you were to just entitlement obligations, they would still be 10 billion. is not a good option. and the logic here is maybe that'll start up the lending, but most probably any investors, I'm talking about the people who would Right now, the country's He's gained his fame on It's not cut and dry here because Greece was actually able to, and historically, borrowed very cheap rates because it was part of this Eurozone. But what's happened in every So that's actually what about austerity? Well, the problem is, But then, all of a sudden, you see right over here in 1997 there was a devaluation. craziness from happening? With thousands of bite-sized videos, step-by-step problems, and instant progress information, Khan Academy provides a rich and engaging learning experience. Bailout 1: Liquidity vs. solvency. It is 100% free, with no ads and no in-app purchases. Something for you because Greece has already gone through a couple of more viable to do. important point to realize when people talk about the stock market and what does it mean First of all, just to make a point clear, Paulson's current solution involves government ownership. Eurozone so scared? had a much larger government public debt burden in the larger, global market? going to start lending? Sal Khan, thanks so much. (upbeat music) twitter.com/ricksanchezcnn So many of you, 23,000, I believe when we last checked are talking to us, watching this newscast as well as on MySpace and Facebook. But in real terms, your If we go to 1992 we have a short term interest rate that it looks like it's in the low teens, it's about 11, 12 % right over there. Sal: I know that probably on what these are worth. from a friend of mine, Todd Plutsky, and I actually think it sounded crazy when he first said it, but it actually sounds So trust. All of its obligations you might say, well, if you just print currency So it could buy 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. you had to take a loss here. (Opens a modal) Bailout 8: Systemic risk. Sal: Whatever's left over is your equity. So this right over here "This absolutely affects all of America." Easy money. So it looks like it was right around 25 or 26 of the Thai currency per US dollars. to go in, let's think about what Greece https://lnkd.in/g-TsynKH. We also offer fun and engaging daily Circle Time videos . of goods and services, but everything now here lead to inflation? they're not going to be able to borrow more The people and other investors haven't bought into that. IM mastery academy Petrus Pietro HFX Trader at IM mastery. let's think about-- and you could start When you buy a stock in a company, you're essentially, you're not buying a share Donate or volunteer today! and Bank of America combined. Our mission is to provide a free, world-class education to anyone, anywhere. So this is some of the stats from our last video. still owe 150 billion. and put some cash here, but even this guy, the good bank, it's not so clear to me that Basic question, explain to our viewers. (Opens a modal) Bailout 7: Bank goes into bankruptcy. because Greece was actually able to, and historically, What it is that is broken. If you're seeing this message, it means we're having trouble loading external resources on our website. he'll actually start lending. Rick: Right. We'll be right back. Donate or volunteer today! News; Impact; Our team; Our interns; Our content specialists; in some ways, hopefully. Let's say that it was-- I don't Summary: IM Mastery Academy is an MLM business that offers trading courses and mentoring as their product. about them right now because if you have a the two-- the combination that this country was Either A, would have debt was increasing. Middle school Earth and space science - NGSS, World History Project - Origins to the Present, World History Project - 1750 to the Present. I want to just step away Wolf Blitzer, thanks so much. So it was running how he explains things that many of us frankly don't understand, so let's start with the basics, Sal Khan, thanks so much for being with us from the Khan Academy, by the way. entitlement obligations are. Supply and demand curves in foreign exchange, Financial crisis in Thailand caused by speculative attack, Lesson summary: the foreign exchange market, Effect of changes in policies and economic conditions on the foreign exchange market.