What interest is. Simple versus compound interest.
Course
Finance
Videos on finance and macroeconomics.
58 Lectures
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More on simple and compound interest.
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A choice between money now and money later.
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More choices as to when you get your money.
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What happens when we change the discount rate?
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Lets change the discount rates depending on how far out the payments are.
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Using a home purchase to illustrate assets, liabilities and owner's equity.
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What happens to equity when the value of the assets increase or decrease.
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Simple example of borrowing from equity to fuel consumption.
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The math of renting vs. buying a home. Challenging the notion that it is always better to buy.
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Factoring in appreciation and depreciation into the rent vs. buy decision.
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Detailed analysis of the rent vs. buy decision.
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What it means to buy a company's stock.
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The difference between a bond and a stock.
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What does it mean to short a stock?
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More on the mechanics of shorting stock.
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A discussion of the virtues and/or vices of short selling.
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Introduction to bankruptcy liquidation (Chapter 7).
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Chapter 11: Restructuring through a bankruptcy
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Introduction to return on capital and cost of capital. Using these concepts to decide where to invest.
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Introduction to the treasury yield curve.
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Compounding interest multiple times a year.
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Compounding 100% annual interest continuously over a year converges to e (2.71...).
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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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Continuously compounding for multiple years.
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Review of balance sheets. Difference between illiquidity and insolvency.
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Hypothetical bank balance sheet. What book value means.
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What it means when the market value of a stock is different from its book value.
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Different ways of accounting for an asset. Mark-to-model vs. mark-to-market.
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How the bank can liquidate assets to pay off debt that comes due.
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The bank gets bailed out by an equity infusion from a sovereign wealth fund.
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What happens when there is no equity infusion and the bank goes in to bankruptcy.
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How the banks are connected. What happens when one bank fails.
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What Paulson wants to do and why I don't like it.
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Alternate plans and moral hazard.
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Introduction to credit default swaps.
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The difference between investment and consumption.
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More investment vs. consumption examples.
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Why a CDO could be worth nothing even though they are "collateralized".
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A real life example of a transaction involving CDOs.
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Can the bailout work?
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A solution that is MUCH fairer that has a MUCH better chance of working!
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More on the "Plutsky Plan".
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Introduction to how banks make money and the value they (potentially) add to society.
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Introduction to the income statement of a bank (and to income statements in general).
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Fractional reserve banking and the multiplier effect. Introduction to the money supply.
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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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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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The difference between APR and effective APR.
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What it means to buy a bond.
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Why bond prices move inversely to changes in interest rate.
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Introduction to mortgage loans.
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Introduction to traditional IRA's (Individual Retirement Accounts).
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Introduction to Roth IRA's.
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Introduction to 401(k)s.
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How Payday lending works.
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The institutions involved in processing your credit credit and how they relate to each other.
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Ponzi Schemes.