the 2008 crash was so severe that it's
still considered the greatest financial
crisis in recent history the united
states lost two trillion dollars worth
of value and 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 no one really
knew what to do in that case 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 while 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 aig for example one of the biggest
financial institutions in the us or to
be more precise one of the biggest until
2008 it purposely gave triple a ratings
to loans that they knew were junk loans
and their borrowers will default
why did they do that you may ask just to
make money out of thin air
aig made dozens if not hundreds of
billions of dollars but was one of the
main drivers of the crisis literally if
aig did not give fake ratings the 2008
crash wouldn't be that bad or wouldn't
happen in the first place although the
government didn't bail it out it is ceo
back then joseph casano who was given
the nickname the men who crashed the
world earned an estimated 34 million
dollars in bonuses in 2008.
think about it you literally destroyed a
company that existed for almost a
hundred years you sent the greatest
economy in the world to a recession and
left millions of people jobless not just
in the us but all across the globe
because the us economy is connected
deeply with the rest of the world
especially europe countries like greece
haven't fully recovered yet from the
crisis that happened over a decade ago
and when you get fired you get a 34
million dollar bonus
how is that supposed to make sense
why on earth do such selfish people get
in such positions in the first place
unfortunately that is not the question
of this video 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 there are still far more facts
that ordinary people don't know about
the banks how do they cheat people how
do they cheat the government or how rich
people use 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 but before we do that
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number one fake accounts since wells
fargo wasn't deeply involved in the 2008
crash like aig or lehman brothers it
created a reputation of a stable bank
but that didn't last long at first
glance it seemed like wall street
learned its lesson and would no longer
get involved in anything fraudulent that
will hurt average people again but
nothing has changed since then 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 the fraud
after being charged an 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 up in 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 afraid 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
customers authorization employees were
encouraged to order credit cards for
pre-approved customers without their
consent and to use their own contact
information when filing out requests to
prevent customers from discovering the
float
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
through a process known as pinning by
setting the client's pin to four zeros
bunkers 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 was first fined a hundred
million dollars in september 2016. 6.1
million dollars 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
paid 2.3 billion dollars in settlements
and constant 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 crush if the
government directly bails you out people
will start hating you so make it seem as
if the government isn't bailing you out
when the fed injects 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 percent
so if you borrow a billion dollars at
just one percent which is exactly what
the fed did it loaned money to the
biggest companies almost like zero
percent 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 a hundred thousand
dollars to buy a house a two percent
mortgage rate if home prices rise by 20
next year you can sell that house for a
hundred twenty thousand dollars pay back
the hundred thousand dollar loan to the
bank plus two thousand dollars worth of
interest and you have earned eighteen
thousand dollars 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 rich people
avoid taxes when you hear the news that
jeff bases has a net worth of 200
billion dollars or elon musk has a net
worth of 300 billion dollars you have to
keep in mind that they do not have 200
billion dollars of paper money stashed
in their bank accounts or backyards but
rather the amount of shares they own in
their companies 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 twenty
percent twenty percent out of a hundred
billion dollars is twenty billion
dollars 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 the banks have figured out a
way for billionaires to do that you can
borrow money from the banks against your
assets the banks will lend you hundreds
of millions of dollars if not billions
for you to spend at a very low rate like
one percent to buy your hundred feet
yacht a mansion a private jet and a few
luxurious cars maybe and you can pay
them back when your company pays
dividends or makes a huge profit or when
you can sell some of your shares at the
right time that's why you find
billionaires like mark zuckerberg or
elon musk still take mortgages for
dozens of millions of dollars even
though they easily can afford those
houses
why sell your shares now when you can
borrow that money at a very low rate and
avoid taxes but unfortunately the banks
aren't going to make that exception for
mortal people like you and me
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even those who got a small loan of a
million dollars from their dads they
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