Finance

Videos on finance and macroeconomics.

Lectures

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   Lecture 1 - Introduction to Interest

   What interest is. Simple versus compound interest.

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   Lecture 2 - Interest Part 2

   More on simple and compound interest.

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   Lecture 3 - Introduction to Present Value

   A choice between money now and money later.

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   Lecture 4 - Present Value 2

   More choices as to when you get your money.

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   Lecture 5 - Present Value 3

   What happens when we change the discount rate?

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   Lecture 6 - Present Value 4 (And Discounted Cash Flow)

   Lets change the discount rates depending on how far out the payments are.

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   Lecture 7 - Introduction to Balance Sheets

   Using a home purchase to illustrate assets, liabilities and owner's equity.

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   Lecture 8 - More on Balance Sheets and Equity

   What happens to equity when the value of the assets increase or decrease.

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   Lecture 9 - Home Equity Loans

   Simple example of borrowing from equity to fuel consumption.

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    Lecture 10 - Renting vs. Buying a Home

    The math of renting vs. buying a home. Challenging the notion that it is always better to buy.

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    Lecture 11 - Renting vs. Buying a Home Part 2

    Factoring in appreciation and depreciation into the rent vs. buy decision.

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    Lecture 12 - Renting vs. Buying (Detailed Analysis)

    Detailed analysis of the rent vs. buy decision.

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    Lecture 13 - Raising Money For a Startup

    Raising money from an angel investor. Pre-money and post-money valuation.

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    Lecture 14 - An IPO

    The initial public offering of our online sock company.

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    Lecture 15 - More on IPOs

    Public vs. Private Equity. Why people buy equity to begin with.

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    Lecture 16 - What It Means to Buy a Company's Stock

    What it means to buy a company's stock.

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    Lecture 17 - Bonds vs. Stocks

    The difference between a bond and a stock.

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    Lecture 18 - Shorting Stock

    What does it mean to short a stock?

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    Lecture 19 - Shorting Stock 2

    More on the mechanics of shorting stock.

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    Lecture 20 - Is Short Selling Bad

    A discussion of the virtues and/or vices of short selling.

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    Lecture 21 - Chapter 7: Bankruptcy Liquidation

    Introduction to bankruptcy liquidation (Chapter 7).

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    Lecture 22 - Chapter 11: Bankruptcy

    Chapter 11: Restructuring through a bankruptcy

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    Lecture 23 - Return on Capital

    Introduction to return on capital and cost of capital. Using these concepts to decide where to invest.

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    Lecture 24 - Introduction to the Yield Curve

    Introduction to the treasury yield curve.

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    Lecture 25 - Introduction to Compound Interest

    Compounding interest multiple times a year.

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    Lecture 26 - Compound Interest and e (Part 2)

    Compounding 100% annual interest continuously over a year converges to e (2.71...).

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    Lecture 27 - Compound Interest and e (Part 3)

    Continuously compounding $P in principal at an annual interest rate of r for a year ends up with a final payment of $Pe^r.

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    Lecture 28 - Compound Interest and e (Part 4)

    Continuously compounding for multiple years.

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    Lecture 29 - Bailout 1: Liquidity vs. Solvency

    Review of balance sheets. Difference between illiquidity and insolvency.

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    Lecture 30 - Bailout 2: Book Value

    Hypothetical bank balance sheet. What book value means.

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    Lecture 31 - Bailout 3: Book Value vs. Market Value

    What it means when the market value of a stock is different from its book value.

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    Lecture 32 - Bailout 4: Mark-to-model vs. Mark-to-market

    Different ways of accounting for an asset. Mark-to-model vs. mark-to-market.

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    Lecture 33 - Bailout 5: Paying Off the Debt

    How the bank can liquidate assets to pay off debt that comes due.

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    Lecture 34 - Bailout 6: Getting an Equity Infusion

    The bank gets bailed out by an equity infusion from a sovereign wealth fund.

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    Lecture 35 - Bailout 7: Bank Goes Into Bankruptcy

    What happens when there is no equity infusion and the bank goes in to bankruptcy.

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    Lecture 36 - Bailout 8: Systemic Risk

    How the banks are connected. What happens when one bank fails.

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    Lecture 37 - Bailout 9: Paulson's Plan

    What Paulson wants to do and why I don't like it.

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    Lecture 38 - Bailout 10: Moral Hazard

    Alternate plans and moral hazard.

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    Lecture 39 - Credit Default Swaps

    Introduction to credit default swaps.

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    Lecture 40 - Investment vs. Consumption 1

    The difference between investment and consumption.

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    Lecture 41 - Investment vs. Consumption 2

    More investment vs. consumption examples.

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    Lecture 42 - Bailout 11: Why These CDOs Could Be Worth Nothing

    Why a CDO could be worth nothing even though they are "collateralized".

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    Lecture 43 - Bailout 12: Lone Star Transaction

    A real life example of a transaction involving CDOs.

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    Lecture 44 - Bailout 14: Possible Solution

    A solution that is MUCH fairer that has a MUCH better chance of working!

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    Lecture 45 - Bailout 15: More On the Solution

    More on the "Plutsky Plan".

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    Lecture 46 - Banking 1

    Introduction to how banks make money and the value they (potentially) add to society.

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    Lecture 47 - Banking 2: A Bank's Income Statement

    Introduction to the income statement of a bank (and to income statements in general).

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    Lecture 48 - Banking 3: Fractional Reserve Banking

    Fractional reserve banking and the multiplier effect. Introduction to the money supply.

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    Lecture 49 - Personal Bankruptcy: Chapters 7 and 13

    Chapter 7 and Chapter 13 personal bankruptcy. This video was sponsored by Visa, but I had complete editorial freedom as to its contents.

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    Lecture 50 - The Rule of 72 for Compound Interest

    Using the Rule of 72 to approximate how long it will take for an investment to double at a given interest rate.

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    Lecture 51 - Annual Percentage Rate (APR) and Effective APR

    The difference between APR and effective APR.

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    Lecture 52 - Introduction to Bonds

    What it means to buy a bond.

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    Lecture 53 - Relationship Between Bond Prices and Interest Rates

    Why bond prices move inversely to changes in interest rate.

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    Lecture 54 - Introduction to Mortgage Loans

    Introduction to mortgage loans.

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    Lecture 55 - Traditional IRAs

    Introduction to traditional IRA's (Individual Retirement Accounts).

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    Lecture 56 - Roth IRAs

    Introduction to Roth IRA's.

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    Lecture 57 - 401(k)s

    Introduction to 401(k)s.

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    Lecture 58 - Payday Loans

    How Payday lending works.

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    Lecture 59 - Institutional Roles in Issuing and Processing Credit Cards

    The institutions involved in processing your credit credit and how they relate to each other.

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    Lecture 60 - Ponzi Schemes

    Ponzi Schemes.

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    Lecture 61 - Correction to 401(k) Video

    Correction to 401(k) video.