Hard Times - The Great Depression.

Enjoy up to 50% off Ekster's Black Friday! Go to https://partner.ekster.com/pboyle and use code BOYLE at checkout to unlock further savings!The Great Depression was the worst and deepest peacetime economic shock in the history of the industrialized world. It brought about profound social change and was a significant factor in the drift towards the Second World War.The depth of suffering during the Depression years is hard for many of us to imagine today. More than 1 in five children in the city were suffering from malnutrition by 1932, and the Great Depression was only getting going at that point, it lasted seven more years. So, why did events on Wall Street in 1929 reverberate around the world? Why did the depression last so long, and how did America and the rest of the world eventually dig themselves out of this financial hole?Patrick's Books:Statistics For The Trading Floor: https://amzn.to/3eerLA0Derivatives For The Trading Floor: https://amzn.to/3cjsyPFCorporate Finance: https://amzn.to/3fn3rvC Ways To Support The ChannelPatreon: https://www.patreon.com/PatrickBoyleOnFinanceBuy Me a Coffee: https://www.buymeacoffee.com/patrickboyleVisit our website: https://www.onfinance.orgFollow Patrick on Twitter Here: https://twitter.com/PatrickEBoyleAdditional Reading:Milton Friedman on The Great Depression: https://amzn.to/4fvMYF6The Great Depression by Robert S. McElvaine: https://amzn.to/40SzajtEssays on The Great Depression by Ben Bernanke: https://amzn.to/40SzajtKeynes letter: https://www.economicsnetwork.ac.uk/archive/keynes_persuasion/The_Economic_Consequences_of_Mr._Churchill.htmThe U.S. Economy in the 1920s: https://eh.net/encyclopedia/the-u-s-economy-in-the-1920s/Britain In The Great Depression: https://moneyweek.com/economy/uk-economy/602525/britain-didnt-have-a-roaring-20s-it-had-a-roaring-30s-heres-whyMichael Pettis in The FT: https://www.ft.com/content/ec1b730b-0fbf-3a8c-896a-557c06f730cfThe photographers of the Great Depression - Dorothea Lange, Walker Evans, and Arthur RothsteinBusiness Inquiries ➡️ [email protected] Boyle On Finance Podcast:Spotify: https://open.spotify.com/show/7uhrWlDvxzy9hLoW0EYf0bApple: https://podcasts.apple.com/us/podcast/patrick-boyle-on-finance/id1547740313Google Podcasts: https://tinyurl.com/62862nveJoin this channel to support making this content:https://www.youtube.com/channel/UCASM0cgfkJxQ1ICmRilfHLw/join Learn more about your ad choices. Visit megaphone.fm/adchoices

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Should companies use derivatives to hedge? How and why do companies hedge?These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. https://amzn.to/2WIoAL0 Check out our website http://www.onfinance.org/Follow Patrick on twitter here: https://twitter.com/PatrickEBoyleShould Companies Use Derivatives to Hedge?Over the last several decades, the use of derivatives as a tool to mitigate and control risk has expanded significantly. Despite well-publicized abuses involving derivatives, the efficacy of derivatives as a means of managing economic and other forms of risk remains widely accepted. The evolving mix of users of derivatives in the last ten years has also impacted the derivatives landscape. Traditionally, commercial hedgers such as processors, mills and large corporations used derivatives to manage risks; today, while commercial hedgers remain active, much of the increase in volume in derivatives is attributable to non-traditional end-users, such as public companies, which have been active users of derivatives, most notably interest rate and foreign currency hedging instruments. Learn more about your ad choices. Visit megaphone.fm/adchoices

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Go to https://ground.news/pb to get up to 40% off unlimited access to stay fully informed. Subscribe through my link this month for 40% off unlimited access. Donald Trump has promised to conduct “the largest deportation effort in American history,” no matter what it costs—but the price tag may be bigger than expected.In today's video we look at a history of US border control and the economic costs of deporting more than six percent of the US workforce while the US workforce ages. Patrick's Books:Statistics For The Trading Floor: https://amzn.to/3eerLA0Derivatives For The Trading Floor: https://amzn.to/3cjsyPFCorporate Finance: https://amzn.to/3fn3rvC Ways To Support The ChannelPatreon: https://www.patreon.com/PatrickBoyleOnFinanceBuy Me a Coffee: https://www.buymeacoffee.com/patrickboyleVisit our website: https://www.onfinance.orgFollow Patrick on Twitter Here: https://bsky.app/profile/pboyle.bsky.socialBusiness Inquiries ➡️ [email protected] Boyle On Finance Podcast:Spotify: https://open.spotify.com/show/7uhrWlDvxzy9hLoW0EYf0bApple: https://podcasts.apple.com/us/podcast/patrick-boyle-on-finance/id1547740313Links:Chloe East - The Labor Market Effects of Immigration Enforcement: https://www.journals.uchicago.edu/doi/epdf/10.1086/721152Chloe East - Unintended Consequences of Immigration Enforcement: https://jhr.uwpress.org/content/early/2022/05/02/jhr.0920-11197R1Warwick McKibbin presentation: https://www.youtube.com/watch?v=QV3lxKYIDFEWhat Will Mass Deportations Look Like: What Will Mass Deportations Look Like? How many people did Obama, Biden and Trump actually deport? https://www.the-independent.com/news/world/americas/us-politics/trump-deportation-numbers-obama-biden-b2649257.htmlSarah O’Connor Article: https://www.ft.com/content/2bb60c40-efe1-48d1-9c9e-b9ff672ce349Who is right about ‘Maganomics? https://www.ft.com/content/76ee5977-1f16-470b-86a5-400209aad5a3What we know about unauthorized immigrants living in the U.S: https://www.pewresearch.org/short-reads/2024/07/22/what-we-know-about-unauthorized-immigrants-living-in-the-us/Join this channel to support making this content:https://www.youtube.com/channel/UCASM0cgfkJxQ1ICmRilfHLw/join Learn more about your ad choices. Visit megaphone.fm/adchoices

In todays video we learn what are asset backed securities, what are credit card receivables and what is a Special Purpose Vehicle (SPV)?These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. https://amzn.to/2WIoAL0 Check out our website http://www.onfinance.org/Follow Patrick on twitter here: https://twitter.com/PatrickEBoyleWhat is an Asset-Backed Security (ABS)?An asset-backed security (ABS) is a financial security collateralized by a pool of assets such as loans, leases, credit card debt, royalties or receivables. For investors, asset-backed securities are an alternative to investing in corporate debt. An ABS is similar to a mortgage-backed security, except that the underlying securities are not mortgage-based.Credit card asset-backed securities (ABSs) are fixed-income bonds based on the cash flow stream from pooled credit card accounts. First issued in 1987, credit card ABSs are mostly high quality, pay good yields, and are liquid, with transparent prices. The number of credit card ABSs increase as the use of credit increases. However, like most asset-backed securities and unlike most corporate or government bonds, credit card ABSs have only an average maturity rather than a specified maturity because the underlying cash flow is highly variable. Credit card ABSs are structured so as to mimic the cash flow of a typical bond, but the timing of the cash flow is usually not guaranteed.The process of securitizing credit card receivables is very similar to that of securitizing mortgages and other loan obligations. A card issuer sells a group of accounts to a trust, which issues securities backed by those receivables. The card issuer still services the account, but the assets are removed from its balance sheet. This allows the card issuer to issue more accounts and to reduce its capital reserve requirements, the amount of money banks are required by law to hold to do business. This money doesn't earn interest, so, naturally, the card issuer wants to reduce its required reserves as much as possible. As the cardholders pay on their accounts monthly, most of the money is sent to the trust, which pays the holders of the credit card ABSs interest and principal. The card issuer retains a servicing fee and part of the finance charge as profit, and also includes part of the principal—the seller's interest.Securitization allows more rapid growth of banks specializing in credit card issuances by providing a source of funding and transferring risk. Before the securitization of credit card receivables, card issuers borrowed money from a bank or relied on bank deposits to fund credit card loans. Securitization greatly expanded funding for credit card issuers, including monoline issuers, and issuers whose main business is not banking or issuing credit cards, such as Amazon.com.A special-purpose vehicle, or special-purpose entity (SPE; or SPV, or, in some cases in each EU jurisdiction – FVC, financial vehicle corporation) is a legal entity (usually a limited company of some type or, sometimes, a limited partnership) created to fulfill narrow, specific or temporary objectives. SPEs are typically used by companies to isolate the firm from financial risk. A formal definition is "The Special Purpose Entity is a fenced organization having limited predefined purposes and a legal personality"Trading and pricing financial derivatives. Learn more about your ad choices. Visit megaphone.fm/adchoices

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