Funny and a bit perverse the way banks use the term 'asset'. For ordinary people, assets are good, whereas in the banking world assets are almost always 'risky' assets they hope to get rid of from their balance sheets.
"Close to 3,000 banks are currently classified as having a risky concentration of commercial real estate loans, according to a recent report by the Congressional Oversight Panel (COP). All of them are small to mid-sized banks, already weakened by the financial crisis....These are the same banks that provide loans to small businesses that create jobs and boost productivity." Says blacklistenews . com / news-7570-0-13-13--.html
Fantastic job as always Paddy! If I owned a college, a financial company, or if I could hire a personal investor for me, Paddy would be it. Cheers, mate. Fantastic job!
How can the Loan be an asset. The money is gone - all the bank got is the worthless collateral - in this case the empty strip mall. Sounds like a liablility to me. It is all one big accounting Name Game.
In bank accounting, a loan is an asset because it's (sorta) like an account receivable, whereas a deposit is a liability because it's (in a way) like an account payable. Banks earn interest on loans; they're the bank's working assets. Strange but long has been the case. Nothing to do with new, creative accounting.
Hey Paddy, Bars and liquor shops are commercial real estates which should do very good indeed. Looks like everyone is going to badly need a drink soon ;)
Excellent Presentation, but I need a drink.
cnewtonc 9 months ago
Funny and a bit perverse the way banks use the term 'asset'. For ordinary people, assets are good, whereas in the banking world assets are almost always 'risky' assets they hope to get rid of from their balance sheets.
tairanotomomori 1 year ago
"Close to 3,000 banks are currently classified as having a risky concentration of commercial real estate loans, according to a recent report by the Congressional Oversight Panel (COP). All of them are small to mid-sized banks, already weakened by the financial crisis....These are the same banks that provide loans to small businesses that create jobs and boost productivity." Says blacklistenews . com / news-7570-0-13-13--.html
maganz 1 year ago
Thanks Paddy, great info and love watching your use of the whiteboard
v1d30junk 2 years ago
These videos are so educational. Thanks for making them.
fugitivepeas 2 years ago 3
awesome ! - thanks !!!!!
OSCAR1777 2 years ago
Paddy's pwns the UPS whiteboard guy! Keep up the awesome videos Paddy.
elpresidio 2 years ago 5
the load is not a asset the money is gone all the bank got was empty buildings
RunescapePkCommunity 2 years ago
Fantastic job as always Paddy! If I owned a college, a financial company, or if I could hire a personal investor for me, Paddy would be it. Cheers, mate. Fantastic job!
mduda96 2 years ago 2
this guys rules - he make things simple that whole CNN and money analyst try to confuse for layman.watch his other videos too - excellant teacher
pythoncancer 2 years ago 3
How can the Loan be an asset. The money is gone - all the bank got is the worthless collateral - in this case the empty strip mall. Sounds like a liablility to me. It is all one big accounting Name Game.
jfcrow1 2 years ago
In bank accounting, a loan is an asset because it's (sorta) like an account receivable, whereas a deposit is a liability because it's (in a way) like an account payable. Banks earn interest on loans; they're the bank's working assets. Strange but long has been the case. Nothing to do with new, creative accounting.
MarcusCMarcellus 2 years ago 2
Its going to leave everyone badly needing a drink.
hiphopsocnroc 2 years ago 8
Hey Paddy, Bars and liquor shops are commercial real estates which should do very good indeed. Looks like everyone is going to badly need a drink soon ;)
0musing 2 years ago 5
Where have you been?
cosmosgato 2 years ago
awesome as alwaysl!
drmkkk 2 years ago