1 00:00:00,520 --> 00:00:07,960 Speaker 1: San Francisco, the s Y s K treet Yes, San Francisco, Oakland, 2 00:00:08,240 --> 00:00:11,240 Speaker 1: the entire Bay area and dare I say, all of 3 00:00:11,240 --> 00:00:14,640 Speaker 1: Silicon Valley. Yeah, we love you. And we're coming back 4 00:00:14,640 --> 00:00:17,520 Speaker 1: to Sketch Fest this year in January. Yeah, we're gonna 5 00:00:17,560 --> 00:00:21,520 Speaker 1: be there on Sunday, January one pm, a very rare 6 00:00:21,720 --> 00:00:25,560 Speaker 1: afternoon show. Uh, and we will be ready to go. 7 00:00:25,840 --> 00:00:28,080 Speaker 1: So you guys better be drunk from the night before 8 00:00:28,160 --> 00:00:31,319 Speaker 1: or getting drunk for that evening. Yeah, however it crosses over, 9 00:00:31,440 --> 00:00:34,720 Speaker 1: I think it'll be proof positive that uh we endorse 10 00:00:35,159 --> 00:00:39,600 Speaker 1: afternoon drinking, you know, yeah, you know, a couple of drinks, 11 00:00:39,600 --> 00:00:43,440 Speaker 1: maybe it'd be bloody Mary. What were we talking about. Oh, yeah, 12 00:00:43,479 --> 00:00:45,800 Speaker 1: we're promoting our show. Oh, that's right. So we're doing 13 00:00:45,800 --> 00:00:48,800 Speaker 1: that show on January. Uh. You can go to the 14 00:00:48,960 --> 00:00:52,720 Speaker 1: s F Sketch Fest website to get tickets and it's awesome. 15 00:00:52,760 --> 00:00:56,640 Speaker 1: It's a great, great comedy festival. Lots of awesome shows 16 00:00:56,680 --> 00:01:01,040 Speaker 1: that weekend and for the following weeks. So I encourage you, 17 00:01:01,120 --> 00:01:04,160 Speaker 1: like to buy lots of tickets just by ours first. Yeah, 18 00:01:04,400 --> 00:01:06,959 Speaker 1: and hurry, hurry, because they're selling out fast. No joke, 19 00:01:07,080 --> 00:01:09,480 Speaker 1: that's not a ploy. That's not as a marketing ploy. 20 00:01:10,400 --> 00:01:13,360 Speaker 1: They're really selling fast. We get emails every time. Guys, 21 00:01:13,400 --> 00:01:16,000 Speaker 1: you told me to hurry, I didn't hurry. I'm shut out. 22 00:01:16,920 --> 00:01:20,280 Speaker 1: And since this promos petered out, it ends right now. 23 00:01:21,600 --> 00:01:25,040 Speaker 1: Welcome to stuff you should know from how Stuff Works 24 00:01:25,040 --> 00:01:34,119 Speaker 1: dot com. Hey, and welcome to the podcast. I'm Josh Clark, 25 00:01:34,160 --> 00:01:37,880 Speaker 1: and there's Charles W Chuck Bryant, and it's just us. 26 00:01:39,080 --> 00:01:43,200 Speaker 1: We've been abandoned this week now. No one was in 27 00:01:43,280 --> 00:01:46,800 Speaker 1: there for a second earlier, but it's like home alone. 28 00:01:48,680 --> 00:01:51,560 Speaker 1: Ah boy, I love that movie. When it came out. 29 00:01:52,520 --> 00:01:55,920 Speaker 1: Oh yeah, yeah. I thought the sequence, the big break 30 00:01:56,000 --> 00:01:59,480 Speaker 1: in sequence where he had everything rigged that fifteen or 31 00:01:59,480 --> 00:02:01,480 Speaker 1: twenty minute I thought that was one of the funniest 32 00:02:01,520 --> 00:02:03,760 Speaker 1: things I've ever seen. It was a pretty good movie. 33 00:02:03,840 --> 00:02:06,680 Speaker 1: I just laughed and laughed and laughed. Was that a 34 00:02:06,760 --> 00:02:12,200 Speaker 1: John Hughes movie? Yeah? Okay, makes sense that Chicago Suburbs 35 00:02:12,200 --> 00:02:18,280 Speaker 1: setting he loved, Yes he did. R I P Chicago 36 00:02:18,360 --> 00:02:22,239 Speaker 1: Suburbs alright, P John Hughes. Oh I see that makes 37 00:02:22,280 --> 00:02:25,160 Speaker 1: way more sense. Yeah. It was just a couple of 38 00:02:25,240 --> 00:02:29,080 Speaker 1: years ago, right, not too long ago, for sure, Within 39 00:02:29,120 --> 00:02:33,000 Speaker 1: the last five I would say, Man, all those great movies, 40 00:02:33,480 --> 00:02:40,959 Speaker 1: cry baby um in Flamingos, Nope, Apocalypse now, yeah, he's good. 41 00:02:41,240 --> 00:02:43,399 Speaker 1: Oh wow. He passed away in two thousand nine, so yeah, 42 00:02:43,440 --> 00:02:48,360 Speaker 1: seven years ago. What No? Wow? Yeah, I thought it 43 00:02:48,360 --> 00:02:50,800 Speaker 1: was way more recent than that. Time flies in a 44 00:02:50,800 --> 00:02:53,520 Speaker 1: world without John Hughes, you know where time doesn't fly 45 00:02:53,680 --> 00:02:59,800 Speaker 1: chuck at the beginning of our episodes kind of drag. 46 00:03:01,160 --> 00:03:05,800 Speaker 1: That's funny. So today we're talking about the possibility, the 47 00:03:05,840 --> 00:03:11,400 Speaker 1: potential of living in this modern American life, this modern 48 00:03:11,440 --> 00:03:15,680 Speaker 1: world in general, without a bank account. Yeah, this ended 49 00:03:15,760 --> 00:03:17,200 Speaker 1: up being a little more interesting than I thought it 50 00:03:17,240 --> 00:03:21,160 Speaker 1: was gonna be. Oh yeah, I'm glad that was the case. 51 00:03:21,400 --> 00:03:24,079 Speaker 1: It was less interesting than you thought it was gonna be. No, no, 52 00:03:24,400 --> 00:03:27,120 Speaker 1: but I mean we've had some of those before, Like 53 00:03:27,200 --> 00:03:30,799 Speaker 1: jack Hammers comes to mind. That was better, it was 54 00:03:30,800 --> 00:03:34,720 Speaker 1: going It was the opposite. I was like, wait, wait, wait, 55 00:03:34,760 --> 00:03:37,360 Speaker 1: there has to be more on jack Hammers than this. Nope, 56 00:03:38,200 --> 00:03:41,680 Speaker 1: that was your pick. Yeah, it was no forever bear 57 00:03:41,760 --> 00:03:46,640 Speaker 1: that cross. So you would think that banks in general 58 00:03:47,120 --> 00:03:53,000 Speaker 1: is ubiquitous and huge and powerful and um out of 59 00:03:53,040 --> 00:03:58,280 Speaker 1: control as they are had been around for millions of years, right, 60 00:03:59,640 --> 00:04:05,040 Speaker 1: Terry maybe not millions, tens of thousands of years. Uh. 61 00:04:05,080 --> 00:04:08,200 Speaker 1: It turns out actually the bank, the concept of the 62 00:04:08,200 --> 00:04:11,480 Speaker 1: bank as we see it today, is actually only about 63 00:04:11,560 --> 00:04:15,240 Speaker 1: five hundred or so years old. Yes, I would have 64 00:04:15,280 --> 00:04:17,560 Speaker 1: guessed way older than that. Yeah, and I'm glad this 65 00:04:17,680 --> 00:04:19,920 Speaker 1: article did a little history there, because I didn't know 66 00:04:20,040 --> 00:04:24,960 Speaker 1: any of this stuff. Um, the first actual bank, kind 67 00:04:24,960 --> 00:04:27,279 Speaker 1: of modern bank that we think of as a bank, 68 00:04:28,080 --> 00:04:31,719 Speaker 1: was the Bank of St. George or the Banco the 69 00:04:31,760 --> 00:04:39,039 Speaker 1: San Giogio in Genoa, Italy or is it Genoa. I've 70 00:04:39,080 --> 00:04:44,800 Speaker 1: always seen Genoa, Genoa, Genoa, Genoa. So that was um. 71 00:04:44,880 --> 00:04:46,880 Speaker 1: And and they point out in this article that wasn't 72 00:04:46,960 --> 00:04:53,880 Speaker 1: the invention of banking, because banking is different than a bank. Yeah, 73 00:04:53,960 --> 00:04:58,000 Speaker 1: banking actually did start several thousand years ago, as far 74 00:04:58,080 --> 00:05:02,760 Speaker 1: as far back as Mesopotamia and Egypt. And this article 75 00:05:02,800 --> 00:05:05,599 Speaker 1: says that the that grain started to be kept in 76 00:05:05,640 --> 00:05:10,039 Speaker 1: temples in a grain bank, I saw gold. But the 77 00:05:10,160 --> 00:05:13,120 Speaker 1: upshot of it was is that these temples that were 78 00:05:13,120 --> 00:05:17,080 Speaker 1: built were basically sacrosanc the armies would protect them with 79 00:05:17,120 --> 00:05:20,000 Speaker 1: their lives. So it would just make sense that if 80 00:05:20,040 --> 00:05:24,320 Speaker 1: you wanted to store something extremely precious and valuable UM 81 00:05:24,360 --> 00:05:27,520 Speaker 1: like gold, We'll just put in a temple, so the 82 00:05:27,600 --> 00:05:30,960 Speaker 1: earliest reserve banks I guess you could put it, or 83 00:05:31,120 --> 00:05:35,840 Speaker 1: temples in Egypt and Mesopotamia. And then one at some 84 00:05:35,920 --> 00:05:39,280 Speaker 1: point some of the local people or local rulers came 85 00:05:39,279 --> 00:05:42,200 Speaker 1: along and said, hey, I really need some money. You 86 00:05:42,200 --> 00:05:44,280 Speaker 1: guys have tons of gold just sitting in there. Can 87 00:05:44,320 --> 00:05:46,479 Speaker 1: I borrow some of it? And then I'll give you 88 00:05:46,600 --> 00:05:49,680 Speaker 1: that amount back plus a little more for letting me 89 00:05:49,760 --> 00:05:52,960 Speaker 1: borrow it? And they said, why should we call this? 90 00:05:54,480 --> 00:05:57,880 Speaker 1: And they call it banking. Do you know where that 91 00:05:57,920 --> 00:06:01,640 Speaker 1: work came from? No? I don't either, because they probably 92 00:06:01,640 --> 00:06:03,839 Speaker 1: didn't call it banking. They probably called it like sun 93 00:06:03,880 --> 00:06:09,400 Speaker 1: crow or something like that. So, uh, let's go back 94 00:06:09,400 --> 00:06:13,920 Speaker 1: to UM in Italy. And this is when Italy had 95 00:06:14,120 --> 00:06:18,000 Speaker 1: a city states. Oh wait, I had more, I had more. Yeah, 96 00:06:19,160 --> 00:06:21,760 Speaker 1: it's it actually is kind of interesting. All right, Well, 97 00:06:21,880 --> 00:06:25,400 Speaker 1: let me down the machine. Okay, yeah, just keep it idling, 98 00:06:25,800 --> 00:06:31,560 Speaker 1: keep on um. They so you had the initial banking practices, 99 00:06:31,600 --> 00:06:34,120 Speaker 1: and they kept developing and developing, and then Greece and 100 00:06:34,279 --> 00:06:37,240 Speaker 1: Rome really kind of took them and and went to 101 00:06:37,240 --> 00:06:41,799 Speaker 1: town with them, and things like UM book transactions where 102 00:06:41,839 --> 00:06:44,600 Speaker 1: you could go into a bank in one city in 103 00:06:44,920 --> 00:06:50,000 Speaker 1: deposit some money, and the banquet handle credit arranging credit 104 00:06:50,040 --> 00:06:51,640 Speaker 1: for you in another city, so you didn't have to 105 00:06:51,640 --> 00:06:54,120 Speaker 1: travel from one city to another, which is very dangerous 106 00:06:54,279 --> 00:06:56,320 Speaker 1: with a bunch of money on you. It's a book 107 00:06:56,360 --> 00:06:59,000 Speaker 1: transaction that came from like the Greeks and the Romans, 108 00:06:59,200 --> 00:07:02,039 Speaker 1: and these were going to smoothly. And then Rome fell 109 00:07:02,839 --> 00:07:06,160 Speaker 1: and it was replaced by the Holy Roman Empire, which 110 00:07:06,200 --> 00:07:10,400 Speaker 1: was a Christian empire, and Christianity had this very strict 111 00:07:10,480 --> 00:07:16,120 Speaker 1: rule against usury, and usury today means extremely high interest rates, 112 00:07:16,720 --> 00:07:20,760 Speaker 1: whereas at at the origin of the word it meant 113 00:07:20,840 --> 00:07:24,080 Speaker 1: just charging interests at all. So there was no money 114 00:07:24,120 --> 00:07:28,600 Speaker 1: whatsoever in banking UM, so there weren't any bankers. Well, 115 00:07:28,720 --> 00:07:33,240 Speaker 1: the Jewish faith didn't have any rules against usury. So 116 00:07:33,600 --> 00:07:36,600 Speaker 1: as the Holy Roman Empire was in in UH in 117 00:07:36,760 --> 00:07:40,400 Speaker 1: power for these several hundred years, they fulfilled the banking 118 00:07:40,720 --> 00:07:45,240 Speaker 1: UH industry UH until finally about the I think thirteenth 119 00:07:45,240 --> 00:07:49,680 Speaker 1: and fourteenth century when UM, like the Italians started to 120 00:07:49,720 --> 00:07:53,120 Speaker 1: get into it and they kind of created that that 121 00:07:53,320 --> 00:07:56,960 Speaker 1: UM modern banking system that we see today. Can I 122 00:07:57,000 --> 00:08:04,680 Speaker 1: get back in, Yeah? Can I? Can we go to 123 00:08:04,680 --> 00:08:09,520 Speaker 1: fourteen o eight, Yes, specifically March fourteen o eight. This 124 00:08:09,600 --> 00:08:12,840 Speaker 1: is UM, like I teased before in Italy, this is 125 00:08:12,880 --> 00:08:15,960 Speaker 1: the at the time of the city state UM, when 126 00:08:17,200 --> 00:08:19,720 Speaker 1: you would go to war with one another within your 127 00:08:19,760 --> 00:08:26,000 Speaker 1: own country UM. Specifically in this case, UH, Genoa was 128 00:08:26,320 --> 00:08:32,120 Speaker 1: getting UH trod upon by Venice. Long long war with 129 00:08:32,200 --> 00:08:36,280 Speaker 1: Venice big rivals. And basically as what happens many times 130 00:08:36,320 --> 00:08:39,959 Speaker 1: in war is it's sort of bled that city state 131 00:08:40,040 --> 00:08:44,400 Speaker 1: of Genoa dry and it was in bad shape. So 132 00:08:44,640 --> 00:08:47,520 Speaker 1: these folks got together. I did look it up. I 133 00:08:47,520 --> 00:08:50,600 Speaker 1: can't remember who it was, though, the initial investors UM 134 00:08:50,640 --> 00:08:54,160 Speaker 1: that started the Bank of St. George, and he said, hey, 135 00:08:54,200 --> 00:08:57,360 Speaker 1: let's create this thing and like literally in a building, UH, 136 00:08:57,400 --> 00:08:59,920 Speaker 1: it will be a bank and we can finance reap 137 00:09:00,000 --> 00:09:03,440 Speaker 1: aim it of all these war debts UH and earn 138 00:09:03,559 --> 00:09:07,680 Speaker 1: a little seven percent on top interest on top of 139 00:09:07,720 --> 00:09:10,680 Speaker 1: it all. And in fact we got a better idea. 140 00:09:10,679 --> 00:09:12,880 Speaker 1: Why don't we even have the power to go and 141 00:09:12,920 --> 00:09:16,520 Speaker 1: collect uh city taxes and customs and stuff to make 142 00:09:16,559 --> 00:09:20,679 Speaker 1: sure we get paid back. And it worked, Yeah, it did. 143 00:09:20,720 --> 00:09:24,319 Speaker 1: They brought Genera out of bankruptcy and apparently the bank 144 00:09:24,360 --> 00:09:30,920 Speaker 1: went on until the nineteenth century, like four hundred years George, Yeah, 145 00:09:30,920 --> 00:09:33,600 Speaker 1: it is cool. Um. One of the reasons probably why 146 00:09:33,600 --> 00:09:36,120 Speaker 1: it was successful is that the people who were overseeing 147 00:09:36,160 --> 00:09:40,480 Speaker 1: it were directly invested into the bank, like substantially, Like 148 00:09:40,520 --> 00:09:42,600 Speaker 1: if you were one of the treasurers, you had to 149 00:09:42,880 --> 00:09:47,440 Speaker 1: um invest at least sixteen thousand lira, which is several 150 00:09:47,480 --> 00:09:52,960 Speaker 1: hundred thousand dollars in today's money, um directly into the bank, right, So, 151 00:09:52,960 --> 00:09:55,720 Speaker 1: so you wanted to see that bank succeed like crazy 152 00:09:56,120 --> 00:09:58,120 Speaker 1: because you were directly invested in it, and if the 153 00:09:58,160 --> 00:10:00,559 Speaker 1: bank went under, you stood to lose quite a bit. 154 00:10:01,080 --> 00:10:04,280 Speaker 1: That's that's not the case with banks today. I mean 155 00:10:04,320 --> 00:10:08,360 Speaker 1: companies and I'm sure including banks too like their employees 156 00:10:08,360 --> 00:10:12,120 Speaker 1: to be invested in the company. But certainly there it's 157 00:10:12,160 --> 00:10:14,959 Speaker 1: not a requirement that you have several hundred thousand dollars 158 00:10:14,960 --> 00:10:17,880 Speaker 1: worth of your company's stock to be a director of 159 00:10:17,920 --> 00:10:21,959 Speaker 1: the bank. And then the bank itself can very easily 160 00:10:22,000 --> 00:10:26,640 Speaker 1: be overextended, um, just because of what are called reserve requirements. Right, 161 00:10:27,200 --> 00:10:29,360 Speaker 1: we should do like a whole episode on banking, by 162 00:10:29,400 --> 00:10:33,520 Speaker 1: the way, Yeah, boy, especially that that fall out recently 163 00:10:33,559 --> 00:10:40,480 Speaker 1: with Wells Fargo. Oh about the fake um, the fake accounts, dude, 164 00:10:40,679 --> 00:10:42,959 Speaker 1: have you seen the ad that they have about it. 165 00:10:44,559 --> 00:10:48,520 Speaker 1: They have this ad and it's almost like they shaved 166 00:10:48,520 --> 00:10:52,040 Speaker 1: off the first five seconds where they admit that their 167 00:10:52,080 --> 00:10:55,520 Speaker 1: people created all these fraudulent accounts, right, and then the 168 00:10:55,559 --> 00:10:58,800 Speaker 1: ad comes in at everyone who has affected will be 169 00:10:58,880 --> 00:11:02,320 Speaker 1: fully refunded. We want to gain your trust back. But 170 00:11:02,400 --> 00:11:05,679 Speaker 1: they never say specifically what they're talking about, like they 171 00:11:05,720 --> 00:11:09,040 Speaker 1: never cop to it. Like it's bizarre. You know that thing, 172 00:11:09,520 --> 00:11:14,080 Speaker 1: it makes it stand out like a sore thumb, you know. Yeah, 173 00:11:14,679 --> 00:11:18,400 Speaker 1: it's an oily, oily, weasily add and they have it 174 00:11:18,520 --> 00:11:21,000 Speaker 1: like it's you know, they've got the Wells Fargo guy 175 00:11:21,080 --> 00:11:23,920 Speaker 1: like running in the background to distract you, to make 176 00:11:24,000 --> 00:11:26,880 Speaker 1: you think about your childhood, playing with stage coaches and stuff, 177 00:11:27,280 --> 00:11:30,280 Speaker 1: and Elizabeth Warren is somewhere like blood dripping out of 178 00:11:30,280 --> 00:11:36,320 Speaker 1: our eyeballs. Yeah, yeah, for Elizabeth Warren circus two ten right, 179 00:11:37,520 --> 00:11:40,760 Speaker 1: So yeah, no, I mean she's watching the commercial and 180 00:11:41,160 --> 00:11:45,200 Speaker 1: crying blood tears. No, I'm saying, Elizabeth Warren circus, who's 181 00:11:45,200 --> 00:11:47,560 Speaker 1: who doesn't ten would have? I think these days she's 182 00:11:47,559 --> 00:11:51,640 Speaker 1: like whatever, No, man, she laid into him? Oh did 183 00:11:51,679 --> 00:11:55,800 Speaker 1: she go after him? Oh yeah, yeah, you gotta see 184 00:11:55,800 --> 00:11:59,040 Speaker 1: that that video. That was pretty awesome. Well, good for her. 185 00:11:59,200 --> 00:12:03,400 Speaker 1: When was that may oh, when when she lambasted him? Yeah, 186 00:12:03,640 --> 00:12:05,040 Speaker 1: it was right after it happened. It was like, you know, 187 00:12:05,080 --> 00:12:07,320 Speaker 1: a month, a month or two ago, okay, because I 188 00:12:07,320 --> 00:12:10,720 Speaker 1: feel like she was a little more lionized in the 189 00:12:10,840 --> 00:12:14,000 Speaker 1: last several years than she has been lately. Yeah, I 190 00:12:14,000 --> 00:12:16,600 Speaker 1: mean she she went after specifically. I mean she just 191 00:12:16,640 --> 00:12:19,400 Speaker 1: read the riot Act to the CEO. That's good, and 192 00:12:19,600 --> 00:12:23,920 Speaker 1: was like, are you going to give back your bonus money? 193 00:12:24,280 --> 00:12:26,120 Speaker 1: Like this happened on your watch? Why don't you give 194 00:12:26,160 --> 00:12:28,760 Speaker 1: that money back? He was like, who are you talking 195 00:12:28,760 --> 00:12:31,520 Speaker 1: to me? But one of the one of the things 196 00:12:31,520 --> 00:12:34,480 Speaker 1: I wanted to say though about banks, um that that 197 00:12:34,679 --> 00:12:37,040 Speaker 1: is just such in such stark contrast to the idea 198 00:12:37,120 --> 00:12:41,960 Speaker 1: where you used to have to um contribute your own money. Um. 199 00:12:42,040 --> 00:12:44,640 Speaker 1: The reserve requirements of banks. I was looking into this, Chuck, 200 00:12:44,640 --> 00:12:49,559 Speaker 1: you ready, if if if there's a ten percent reserve 201 00:12:49,600 --> 00:12:54,920 Speaker 1: requirement of um that a bank has, and they they 202 00:12:55,000 --> 00:12:58,360 Speaker 1: have a hundred dollars, they can loan out ninety of 203 00:12:58,400 --> 00:13:02,200 Speaker 1: that hundred dollars to somebody, right, Okay, so they have 204 00:13:02,200 --> 00:13:04,560 Speaker 1: a ten percent in reserve. Now, let's say that that 205 00:13:04,640 --> 00:13:09,000 Speaker 1: person um writes a check for that ninety dollars, like 206 00:13:09,040 --> 00:13:13,840 Speaker 1: they borrowed that hundred bucks to um to, or they 207 00:13:13,880 --> 00:13:16,840 Speaker 1: borrowed that ninety bucks to pay off a debt. So 208 00:13:16,880 --> 00:13:19,000 Speaker 1: they write a check for that ninety bucks to somebody 209 00:13:19,000 --> 00:13:21,000 Speaker 1: who banks with that bank, So that ninety bucks comes 210 00:13:21,080 --> 00:13:25,439 Speaker 1: right back to that bank, right they they can loan 211 00:13:28,400 --> 00:13:31,600 Speaker 1: of that, and so on and so forth until this 212 00:13:31,800 --> 00:13:35,560 Speaker 1: one hundred dollar chunk can be like loaned and repaid 213 00:13:35,559 --> 00:13:38,920 Speaker 1: and loan and repaid all over the place, which makes sense, 214 00:13:38,960 --> 00:13:42,640 Speaker 1: and it keeps everything kind of going um financially. But 215 00:13:43,040 --> 00:13:45,400 Speaker 1: the problem is that if something happens, if a panic 216 00:13:45,480 --> 00:13:47,679 Speaker 1: sets in. This is why runs on banks are so 217 00:13:47,880 --> 00:13:52,080 Speaker 1: um such travesties, and everybody calls in their loan all 218 00:13:52,120 --> 00:13:54,520 Speaker 1: at once. Well, there's a lot of people who are 219 00:13:54,520 --> 00:13:59,040 Speaker 1: calling in that one single hundred dollar hundred dollars rather 220 00:13:59,080 --> 00:14:04,040 Speaker 1: than having the time to pay to to to pay 221 00:14:04,040 --> 00:14:06,160 Speaker 1: it back and then call it in from somebody else 222 00:14:06,160 --> 00:14:08,120 Speaker 1: and use that to pay the other person back. It's 223 00:14:08,160 --> 00:14:11,760 Speaker 1: just a big cluster all at once. That makes sense. 224 00:14:12,880 --> 00:14:16,160 Speaker 1: That's just one of the many interesting things about banks. Yeah, 225 00:14:16,360 --> 00:14:19,040 Speaker 1: I mean, there are clearly other podcasts that we should 226 00:14:19,040 --> 00:14:22,200 Speaker 1: tie to this one, I think, but since this one 227 00:14:22,280 --> 00:14:26,840 Speaker 1: is about not banking, we'll take a break. Here, go 228 00:14:26,960 --> 00:14:53,360 Speaker 1: withdraw our funds, and we'll be right back. All right. So, 229 00:14:53,440 --> 00:14:58,280 Speaker 1: if you live in modern society today, uh, it is 230 00:14:58,320 --> 00:15:05,400 Speaker 1: pretty tough to get by without a bank. Um, most 231 00:15:05,440 --> 00:15:09,120 Speaker 1: cases these days, you have well I don't know about 232 00:15:09,120 --> 00:15:12,880 Speaker 1: most cases, but in many cases you have automatic deposits 233 00:15:12,920 --> 00:15:16,360 Speaker 1: of your of your work checks. A lot of people 234 00:15:16,600 --> 00:15:22,800 Speaker 1: pay their bills wirelessly online directly from their bank. Uh. 235 00:15:22,840 --> 00:15:24,680 Speaker 1: You might have a student loan, you might have a 236 00:15:24,680 --> 00:15:27,680 Speaker 1: car loan, you might have your house mortgage, you might 237 00:15:27,720 --> 00:15:30,280 Speaker 1: pay your credit card bills. All of this stuff is 238 00:15:30,360 --> 00:15:33,840 Speaker 1: running through a bank most likely. And you would think 239 00:15:34,360 --> 00:15:38,520 Speaker 1: it's probably impossible to not have a bank account these days. 240 00:15:39,160 --> 00:15:42,520 Speaker 1: And I would say pretty much all Americans have them. 241 00:15:42,560 --> 00:15:50,000 Speaker 1: Not true, You well know, pretty much all Americans do. Like, yeah, 242 00:15:50,040 --> 00:15:53,240 Speaker 1: but that's not all. No, No, it's true. Yes, seven 243 00:15:53,240 --> 00:15:56,560 Speaker 1: percent of Americans do not have bank accounts. About nine 244 00:15:56,600 --> 00:15:59,640 Speaker 1: million people last year in two thousand fifteen did not 245 00:15:59,640 --> 00:16:02,200 Speaker 1: have bank accounts. Not million peoples, a lot of people. No, 246 00:16:02,280 --> 00:16:05,920 Speaker 1: it really is, um, and apparently that's that's households, sorry, 247 00:16:05,960 --> 00:16:08,160 Speaker 1: not people. Yeah, you're right, you're right. That is a 248 00:16:08,200 --> 00:16:12,320 Speaker 1: big distinction to UM. And the f d i C said, man, 249 00:16:12,400 --> 00:16:15,720 Speaker 1: that's the lowest since we've been tracking this by far, 250 00:16:16,480 --> 00:16:18,880 Speaker 1: And someone said, well, how long have you been tracking this? 251 00:16:19,280 --> 00:16:23,520 Speaker 1: They said, well, of the last six years really yeah, 252 00:16:23,520 --> 00:16:26,720 Speaker 1: which I'm like, really that's when they started tracking it. 253 00:16:26,920 --> 00:16:29,880 Speaker 1: But apparently so two thousand nine. So if you want 254 00:16:29,920 --> 00:16:32,720 Speaker 1: another number, that's the nine million American households don't have 255 00:16:32,720 --> 00:16:35,680 Speaker 1: bank accounts at all. Uh. Then there are twenty five 256 00:16:35,680 --> 00:16:39,520 Speaker 1: million households in addition to that, so that makes almost 257 00:16:39,520 --> 00:16:43,000 Speaker 1: that's like thirty four million households, which that's a substantial 258 00:16:43,080 --> 00:16:46,520 Speaker 1: number at this point. The twenty million or what's called 259 00:16:46,600 --> 00:16:50,400 Speaker 1: underbank meaning they may have a bank account, but they 260 00:16:50,480 --> 00:16:55,640 Speaker 1: don't use the bank account. Yeah, they don't use it because, UM, 261 00:16:56,360 --> 00:17:04,160 Speaker 1: they are probably afraid of overdraft fees, or they have uh, 262 00:17:04,320 --> 00:17:07,800 Speaker 1: maybe a bank account that got grandfathered in so that 263 00:17:07,840 --> 00:17:12,680 Speaker 1: they don't have to pay minimum amount fees UM and 264 00:17:13,080 --> 00:17:15,159 Speaker 1: who knows. There's all sorts of reasons for people to 265 00:17:15,280 --> 00:17:19,120 Speaker 1: not use a bank account that they they have, UM, 266 00:17:19,160 --> 00:17:21,760 Speaker 1: but probably chief among them is overdraft, which you'll talk 267 00:17:21,800 --> 00:17:24,920 Speaker 1: more about. Yeah, and the majority of these underbank people 268 00:17:24,920 --> 00:17:30,440 Speaker 1: in the United States are poor usually um, A lot 269 00:17:30,440 --> 00:17:32,919 Speaker 1: of times, their minorities, a lot of times they are 270 00:17:33,000 --> 00:17:38,040 Speaker 1: less educated. Um. And these communities, I mean, there's there's 271 00:17:38,040 --> 00:17:39,919 Speaker 1: a few reasons why they may not want to use 272 00:17:39,920 --> 00:17:42,880 Speaker 1: a bank. One, maybe they don't trust banks. And if 273 00:17:42,920 --> 00:17:45,160 Speaker 1: you look in the history of the United States, are 274 00:17:45,200 --> 00:17:48,320 Speaker 1: certainly even we're just talking about the Wells Fargo scandal. 275 00:17:48,720 --> 00:17:52,160 Speaker 1: Like when you see stuff like that on the news, um, 276 00:17:52,200 --> 00:17:54,960 Speaker 1: it should be upsetting to everyone. But obviously if you're 277 00:17:55,000 --> 00:17:57,840 Speaker 1: poor and you don't have a lot of money, that 278 00:17:57,960 --> 00:18:00,640 Speaker 1: will that may scare you into not wanting to use 279 00:18:00,640 --> 00:18:04,479 Speaker 1: a bank at all, right, you know. Yeah. And another 280 00:18:04,480 --> 00:18:09,439 Speaker 1: one is that the overdraft fees, which so basically, I 281 00:18:09,440 --> 00:18:14,760 Speaker 1: guess in two thousand one, the current overdraft fee idea 282 00:18:15,359 --> 00:18:17,879 Speaker 1: scam you could call. It was set up as a 283 00:18:17,880 --> 00:18:20,440 Speaker 1: way to generate like way more money for banks, right. 284 00:18:21,640 --> 00:18:24,520 Speaker 1: And the way that overdraft fees generate money for banks 285 00:18:25,480 --> 00:18:30,080 Speaker 1: is when you are overdrafted on your account, they can 286 00:18:30,160 --> 00:18:34,240 Speaker 1: charge you a fee for covering that amount, right, and 287 00:18:34,240 --> 00:18:37,680 Speaker 1: then you still have to deposit that amount, but they 288 00:18:38,119 --> 00:18:41,160 Speaker 1: don't return your check. They cover, They cover the check 289 00:18:41,200 --> 00:18:43,400 Speaker 1: that you paid, but they charge you a fee, say 290 00:18:43,400 --> 00:18:46,000 Speaker 1: like thirty five dollars for that amount. And it seems 291 00:18:46,000 --> 00:18:49,280 Speaker 1: fine and dandy and everything's fine. But there's something called 292 00:18:49,359 --> 00:18:54,480 Speaker 1: clearing checks from high to low, right, okay, where the 293 00:18:54,680 --> 00:18:59,320 Speaker 1: bank will clear checks in descending order of value. So 294 00:18:59,440 --> 00:19:02,960 Speaker 1: if you have of UM a hundred dollars in in 295 00:19:03,040 --> 00:19:06,680 Speaker 1: your bank account and you have a checkout for a 296 00:19:06,760 --> 00:19:10,240 Speaker 1: hundred and fifty dollars, check out for twenty dollars, to 297 00:19:10,320 --> 00:19:13,440 Speaker 1: check out for five, and to check out for fifteen dollars. Right, 298 00:19:14,800 --> 00:19:18,800 Speaker 1: if they cleared the lower amounts first and then the 299 00:19:18,920 --> 00:19:21,840 Speaker 1: last one, only the last one would bounce and create 300 00:19:21,880 --> 00:19:24,720 Speaker 1: an overdraft fee. If they start with the bigger one, 301 00:19:24,920 --> 00:19:27,040 Speaker 1: well you've got an overdraft draft fee right out of 302 00:19:27,080 --> 00:19:29,800 Speaker 1: the gate. But then you also have three more because 303 00:19:29,840 --> 00:19:32,600 Speaker 1: the other smaller checks all bounced as well, and so 304 00:19:32,680 --> 00:19:35,000 Speaker 1: instead of one over draft fee, they get to charge 305 00:19:35,000 --> 00:19:38,359 Speaker 1: you four overdraft fees UM. And that was a huge 306 00:19:38,480 --> 00:19:42,280 Speaker 1: thing when when that was finally reported and exposed, and 307 00:19:42,359 --> 00:19:46,119 Speaker 1: that actually resulted in that UM rule that now you 308 00:19:46,359 --> 00:19:49,639 Speaker 1: UM either I think you have to opt in for 309 00:19:49,760 --> 00:19:53,560 Speaker 1: overdraft protection, whereas before you had to opt out. Yeah. 310 00:19:53,720 --> 00:19:57,520 Speaker 1: I remember back in the day when I was broke 311 00:19:57,560 --> 00:20:02,440 Speaker 1: as back and I would overdraft things in there, I remember, 312 00:20:03,000 --> 00:20:06,960 Speaker 1: and I knew nothing about how things worked with finances. 313 00:20:07,080 --> 00:20:11,040 Speaker 1: Still don't really, but um, I just remember thinking, like 314 00:20:11,119 --> 00:20:14,680 Speaker 1: I would rather it's say no, you you like, don't 315 00:20:14,720 --> 00:20:17,159 Speaker 1: cover me and then charge me. Just just say no, 316 00:20:17,240 --> 00:20:19,560 Speaker 1: you don't have the funds, right, that's the smart way 317 00:20:19,640 --> 00:20:23,280 Speaker 1: to do it. So I never understood, like it was 318 00:20:23,320 --> 00:20:27,040 Speaker 1: like I think they even called it overdraft insurance maybe 319 00:20:27,080 --> 00:20:29,280 Speaker 1: at the time, or I might be making it up. 320 00:20:29,320 --> 00:20:31,520 Speaker 1: I seem to remember them saying that, and I was like, 321 00:20:31,560 --> 00:20:33,879 Speaker 1: I don't want that, like just to like let the 322 00:20:33,960 --> 00:20:37,840 Speaker 1: check bounce and I'll take it up with them. Yeah. 323 00:20:37,880 --> 00:20:40,520 Speaker 1: The way it was marketed though, was like hey, we 324 00:20:40,560 --> 00:20:43,320 Speaker 1: we we value you. We want to make sure that 325 00:20:43,359 --> 00:20:45,679 Speaker 1: you can pay all your bills. So if something happens 326 00:20:45,680 --> 00:20:47,840 Speaker 1: and you're overdrafted, we'll cover it. We're just going to 327 00:20:47,960 --> 00:20:51,320 Speaker 1: charge you a fee. And it sounds good. But again, 328 00:20:51,359 --> 00:20:53,440 Speaker 1: when you go from high to low and all of 329 00:20:53,480 --> 00:20:56,840 Speaker 1: a sudden your overdraft fees go from one to four 330 00:20:56,960 --> 00:20:59,720 Speaker 1: or five or however many, um, you know, that's a 331 00:20:59,800 --> 00:21:02,280 Speaker 1: huge problem. Well, and the people that are overdrafting in 332 00:21:02,320 --> 00:21:04,600 Speaker 1: the people that are at least able to afford those 333 00:21:04,640 --> 00:21:09,240 Speaker 1: fees exactly. So it's a disproportionate burden on the poor, 334 00:21:09,440 --> 00:21:12,520 Speaker 1: which makes it as a scam, one of the more 335 00:21:12,560 --> 00:21:17,560 Speaker 1: evil scams around. Yes, it's just wrong man. So so yeah, 336 00:21:17,640 --> 00:21:20,920 Speaker 1: the idea that that if you are if you open 337 00:21:21,000 --> 00:21:25,400 Speaker 1: an account, you should not opt in for overdraft protection. 338 00:21:25,760 --> 00:21:28,480 Speaker 1: And that's easy to say when when you're talking about 339 00:21:28,560 --> 00:21:31,320 Speaker 1: checks for like, um, you're writing a check for a 340 00:21:31,359 --> 00:21:35,000 Speaker 1: mountain dew and some cheetos, you know, who cares if 341 00:21:35,040 --> 00:21:36,920 Speaker 1: you if you're if you're short for that, you can 342 00:21:36,920 --> 00:21:39,120 Speaker 1: go without that. But you know, when you're talking about 343 00:21:39,119 --> 00:21:41,760 Speaker 1: like your rent check or like an actual grocery bill 344 00:21:41,840 --> 00:21:45,320 Speaker 1: or something like that, you know, it sucks that that 345 00:21:45,520 --> 00:21:48,240 Speaker 1: you can't get that stuff. But it's better to have 346 00:21:48,320 --> 00:21:50,560 Speaker 1: to put a couple of things back than to pay 347 00:21:50,600 --> 00:21:53,600 Speaker 1: thirty five dollars for one two dollar item that that 348 00:21:53,640 --> 00:21:57,159 Speaker 1: you went over by. Yeah, that's a good point. And 349 00:21:57,200 --> 00:21:59,200 Speaker 1: this was in my case too. This is also back 350 00:21:59,200 --> 00:22:01,560 Speaker 1: in the day when you uh, I mean a lot 351 00:22:01,560 --> 00:22:03,159 Speaker 1: of times it was a mystery how much you had 352 00:22:03,160 --> 00:22:05,640 Speaker 1: in your account, Like you couldn't just get on your 353 00:22:05,640 --> 00:22:09,159 Speaker 1: phone and and before you write the check and be like, oh, well, no, 354 00:22:09,320 --> 00:22:11,240 Speaker 1: I don't have enough money to cover this. Yeah, because 355 00:22:11,280 --> 00:22:14,480 Speaker 1: even if you balanced your checkbook, sometimes you forgot to 356 00:22:14,520 --> 00:22:16,560 Speaker 1: carry the one like it wasn't always a d percent 357 00:22:16,600 --> 00:22:18,840 Speaker 1: in accurate. And if you had a life, you didn't 358 00:22:18,840 --> 00:22:23,080 Speaker 1: necessarily rectify your bank checkbook every day. Oh wait, what 359 00:22:23,160 --> 00:22:27,679 Speaker 1: is balancing a checkbook means? Serious? Yeah? Thank god for 360 00:22:27,720 --> 00:22:31,720 Speaker 1: my wife. Um. So another reason you might avoid a bank, 361 00:22:32,400 --> 00:22:36,879 Speaker 1: uh is philosophically. You may um, you may have that 362 00:22:37,000 --> 00:22:39,600 Speaker 1: there may be a longstanding distrust of banks in your 363 00:22:39,600 --> 00:22:42,119 Speaker 1: family that you don't want to put your money in. 364 00:22:42,359 --> 00:22:44,080 Speaker 1: Or you may just want to be like, you know what, 365 00:22:44,800 --> 00:22:47,880 Speaker 1: I don't want to take part in this modern society. 366 00:22:47,880 --> 00:22:50,080 Speaker 1: I want to kind of drop out a bit. And 367 00:22:50,280 --> 00:22:53,040 Speaker 1: a really good first move is to shut your bank 368 00:22:53,040 --> 00:22:56,280 Speaker 1: account down. That's a big statement. Oh yeah it is, 369 00:22:56,880 --> 00:23:01,320 Speaker 1: you know, but a lot of people that are under 370 00:23:01,320 --> 00:23:05,920 Speaker 1: banked and don't have accounts aren't. They're on purpose. It's 371 00:23:05,920 --> 00:23:10,080 Speaker 1: not some philosophical statement. A lot of times is simply 372 00:23:10,119 --> 00:23:13,159 Speaker 1: because uh, they are poor and they don't have a 373 00:23:13,160 --> 00:23:16,400 Speaker 1: lot of alternatives. Yeah. And the other thing about um 374 00:23:16,440 --> 00:23:19,119 Speaker 1: about not having a bank account. Not only do you 375 00:23:19,200 --> 00:23:22,280 Speaker 1: not have a bank account, you also are like basically 376 00:23:22,320 --> 00:23:24,840 Speaker 1: just avoiding banks altogether. There's plenty of other things that 377 00:23:24,880 --> 00:23:30,760 Speaker 1: banks offer, like loans and mortgage stuff like that. Yeah, yeah, 378 00:23:30,840 --> 00:23:36,360 Speaker 1: maybe some free nasty coffee UM. But the so when 379 00:23:36,400 --> 00:23:38,879 Speaker 1: you're when you don't have a banking account, that's like 380 00:23:38,920 --> 00:23:43,040 Speaker 1: the the most basic unit of the banking world. Right. 381 00:23:43,080 --> 00:23:45,159 Speaker 1: If you don't have that, you obviously aren't going to 382 00:23:45,160 --> 00:23:48,200 Speaker 1: be exposed all these other things that can help things 383 00:23:48,280 --> 00:23:51,040 Speaker 1: like um build your credit history through like a revolving 384 00:23:51,119 --> 00:23:54,639 Speaker 1: loan UM or a mortgage or a car loan or 385 00:23:54,640 --> 00:23:57,080 Speaker 1: something like that that you can build up your credit 386 00:23:57,119 --> 00:24:01,360 Speaker 1: for and ultimately save money. UM. So when you don't 387 00:24:01,400 --> 00:24:05,600 Speaker 1: have a bank account for whatever reason, you are effectively 388 00:24:05,600 --> 00:24:08,800 Speaker 1: out of the banking system. The problem is, you can 389 00:24:08,920 --> 00:24:12,639 Speaker 1: live parallel to the banking system outside of it, but 390 00:24:12,720 --> 00:24:15,480 Speaker 1: it can be really dangerous, especially if you're just dealing 391 00:24:15,480 --> 00:24:18,720 Speaker 1: with cash, because that cash has to stay somewhere, and 392 00:24:18,720 --> 00:24:22,080 Speaker 1: whether it's on you or in your mattress or in 393 00:24:22,119 --> 00:24:26,280 Speaker 1: a coffee can in your backyard, you're you're exposed for 394 00:24:26,280 --> 00:24:30,399 Speaker 1: for having that UM readily available to anybody who finds 395 00:24:30,400 --> 00:24:32,280 Speaker 1: it or comes into your house with a gun to 396 00:24:32,320 --> 00:24:36,560 Speaker 1: get it, which is another thing that sucks. Yeah, there's 397 00:24:36,560 --> 00:24:38,600 Speaker 1: no insurance for that. You know, if you lose your cash, 398 00:24:38,600 --> 00:24:42,240 Speaker 1: you lose your cash. So one thing that people rely 399 00:24:42,359 --> 00:24:45,760 Speaker 1: on sometimes these days as an alternative source for a 400 00:24:45,760 --> 00:24:49,000 Speaker 1: loan at least is something called a payday lender. You 401 00:24:49,080 --> 00:24:51,400 Speaker 1: might have seen these little brick and mortar shops with 402 00:24:51,560 --> 00:24:57,159 Speaker 1: UM with the the neon sign in the window. Cash 403 00:24:57,200 --> 00:25:03,120 Speaker 1: now available to you, uh X business day stuff like that. UM, 404 00:25:03,280 --> 00:25:05,440 Speaker 1: you can you can go to these places. It's a 405 00:25:05,480 --> 00:25:10,560 Speaker 1: quick application process. UH won't affect your credit score sometimes 406 00:25:10,800 --> 00:25:12,800 Speaker 1: UM that you know, they'll say that if it doesn't, 407 00:25:13,680 --> 00:25:15,600 Speaker 1: and you can get money like the next business day. 408 00:25:15,600 --> 00:25:17,800 Speaker 1: If you want three hundred bucks, you can go in 409 00:25:17,840 --> 00:25:20,160 Speaker 1: there and get three hundred bucks. But you're gonna pay 410 00:25:20,160 --> 00:25:25,160 Speaker 1: a fee on that UM and it's big, they say, 411 00:25:25,280 --> 00:25:28,119 Speaker 1: the fees if you pay back within eight days, it 412 00:25:28,200 --> 00:25:30,679 Speaker 1: works out if you if you put it on a 413 00:25:30,720 --> 00:25:33,239 Speaker 1: scale of a p R annual percentage rate of like 414 00:25:33,560 --> 00:25:37,320 Speaker 1: three d is what you're paying on that loan. I 415 00:25:37,320 --> 00:25:40,440 Speaker 1: saw one for a hundred dollar loan on cash net 416 00:25:40,520 --> 00:25:44,320 Speaker 1: usas site. UM for a one hundred loan pay back 417 00:25:44,320 --> 00:25:47,360 Speaker 1: in eight days for their flat fee and the interest 418 00:25:47,480 --> 00:25:53,040 Speaker 1: you pay six It's one of those things, man, when 419 00:25:53,080 --> 00:25:55,520 Speaker 1: you see this and you're like, man, how can you 420 00:25:55,600 --> 00:25:59,240 Speaker 1: not look at it as bilking poor people out of 421 00:25:59,280 --> 00:26:03,760 Speaker 1: more money? Well, some people who use payday lenders say, hey, 422 00:26:03,800 --> 00:26:05,520 Speaker 1: if you look at this, you when you look at 423 00:26:05,560 --> 00:26:08,280 Speaker 1: their rates in terms, it's all laid out. It's not 424 00:26:08,359 --> 00:26:10,800 Speaker 1: some crazy percentage I have to figure out and come 425 00:26:10,880 --> 00:26:13,359 Speaker 1: up with compounding interest or anything like that. It is 426 00:26:13,640 --> 00:26:17,080 Speaker 1: it says, if you borrow one hundred dollars, you have 427 00:26:17,200 --> 00:26:19,960 Speaker 1: to pay us back one hundred and fifteen dollars. There's 428 00:26:20,000 --> 00:26:22,760 Speaker 1: a like a ten dollar service fee, and then for 429 00:26:22,760 --> 00:26:26,120 Speaker 1: a hundred dollars it's five five dollars in interest. Right, 430 00:26:26,240 --> 00:26:27,960 Speaker 1: So that's what you owe us is a hundred and 431 00:26:27,960 --> 00:26:30,560 Speaker 1: fifteen dollars. It doesn't require a lot of thought, a 432 00:26:30,560 --> 00:26:33,160 Speaker 1: lot of um. There's not a lot of wiggle room 433 00:26:33,280 --> 00:26:36,320 Speaker 1: for them to um to add more fees or anything 434 00:26:36,400 --> 00:26:39,119 Speaker 1: like that. It's you know what you have to pay back. 435 00:26:39,920 --> 00:26:45,480 Speaker 1: But that said, they they very quickly can comprise a 436 00:26:45,560 --> 00:26:50,080 Speaker 1: trap payday lending trap that people get caught in, especially 437 00:26:50,080 --> 00:26:53,600 Speaker 1: when they start rolling over loans. Yeah, and you know 438 00:26:53,640 --> 00:26:55,240 Speaker 1: when I said it's like hard to not look at 439 00:26:55,280 --> 00:26:58,520 Speaker 1: it that way, it's because it's it's not like it 440 00:26:58,560 --> 00:27:01,159 Speaker 1: just feels like, hey, these people have their backs up 441 00:27:01,160 --> 00:27:03,800 Speaker 1: against the wall and they really need two hundred bucks exactly, 442 00:27:03,960 --> 00:27:05,840 Speaker 1: so you can come get it from us. But then 443 00:27:06,400 --> 00:27:10,320 Speaker 1: of course there are another complete other set of people 444 00:27:10,520 --> 00:27:13,600 Speaker 1: that say, yeah, dude, that's the deal, and you know what, 445 00:27:13,720 --> 00:27:18,200 Speaker 1: don't use that place then right right there. The thing 446 00:27:18,280 --> 00:27:20,520 Speaker 1: is that some people are saying, Okay, that's a that's 447 00:27:20,520 --> 00:27:23,440 Speaker 1: a valid philosophy, but you need to have an alternative 448 00:27:24,359 --> 00:27:28,640 Speaker 1: that's fair for people, because people need loans, people get overextended, 449 00:27:28,680 --> 00:27:31,720 Speaker 1: emergencies come up, there's just things that people need money 450 00:27:31,760 --> 00:27:37,080 Speaker 1: for legitimately, and like they shouldn't have to be preyed upon. 451 00:27:37,840 --> 00:27:40,720 Speaker 1: So one of the alternatives that's been proposed is to 452 00:27:40,840 --> 00:27:46,720 Speaker 1: get the regular standard banking industry involved in small um 453 00:27:46,760 --> 00:27:49,960 Speaker 1: short term loans. Is what a paid a loan is 454 00:27:50,760 --> 00:27:55,040 Speaker 1: um and six to ten times less, right exactly. But 455 00:27:55,760 --> 00:27:58,320 Speaker 1: you would, as far as the bank's concerned, the customer 456 00:27:58,400 --> 00:28:01,800 Speaker 1: would still be paying way more than what the standard 457 00:28:01,840 --> 00:28:05,640 Speaker 1: APR that a normal bank charges, but to the customer 458 00:28:05,720 --> 00:28:08,320 Speaker 1: it would be way less than what they're paying to 459 00:28:08,440 --> 00:28:12,600 Speaker 1: the payday lending place. UM. I'm not sure why banks 460 00:28:12,640 --> 00:28:14,560 Speaker 1: aren't into this yet. I don't know. I got the 461 00:28:14,560 --> 00:28:17,000 Speaker 1: impression that there might be some regulation that prevents them 462 00:28:17,040 --> 00:28:20,760 Speaker 1: from being involved, or they're just not interested. But that 463 00:28:20,840 --> 00:28:23,320 Speaker 1: seems to be the key, because that also would seem 464 00:28:23,359 --> 00:28:25,640 Speaker 1: to be a pretty good gateway to getting people who 465 00:28:25,680 --> 00:28:29,560 Speaker 1: wanted to have a bank account into the banking um 466 00:28:29,880 --> 00:28:33,760 Speaker 1: network by starting out with a small a small loan. 467 00:28:33,880 --> 00:28:38,960 Speaker 1: You know you would think so you would? UM? What else? 468 00:28:39,040 --> 00:28:42,800 Speaker 1: Prepaid credit cards? Those are more and more popular these days. 469 00:28:42,800 --> 00:28:45,160 Speaker 1: You can get them at a convenience store. You can 470 00:28:45,200 --> 00:28:47,520 Speaker 1: load money onto it, use it like a regular old 471 00:28:47,520 --> 00:28:51,760 Speaker 1: debit card. What I say, credit card, debit card, and 472 00:28:51,800 --> 00:28:54,840 Speaker 1: it's just what you think it is. UM. Here's the 473 00:28:54,840 --> 00:28:59,200 Speaker 1: deal with those is uh? They are really really easy 474 00:28:59,240 --> 00:29:02,800 Speaker 1: to scam. UM. In two thousand thirteen, the Federal Trade 475 00:29:02,840 --> 00:29:07,160 Speaker 1: Commission got eighty five thousand complaints totally forty three million 476 00:29:07,160 --> 00:29:12,720 Speaker 1: dollars in in scam frauds with debit cards. What do 477 00:29:12,760 --> 00:29:17,080 Speaker 1: you mean like, there's no they're they're almost impossible to 478 00:29:17,600 --> 00:29:23,720 Speaker 1: track anything after purchase, impossible to trace. So it's it's 479 00:29:23,800 --> 00:29:28,080 Speaker 1: really easy. It's like a prime opportunity for someone to 480 00:29:28,080 --> 00:29:31,840 Speaker 1: to scam someone. Like if someone says, hey, uh, we 481 00:29:31,880 --> 00:29:35,640 Speaker 1: request payment from a prepaid credit debit card, then once 482 00:29:35,680 --> 00:29:38,480 Speaker 1: they have that information, they can just go use it. 483 00:29:38,520 --> 00:29:40,840 Speaker 1: And it's not like they have some bank behind it 484 00:29:40,880 --> 00:29:43,320 Speaker 1: that can trace it and track it down and it's 485 00:29:43,320 --> 00:29:45,400 Speaker 1: it's it's just a really easy way to scam people 486 00:29:45,400 --> 00:29:47,960 Speaker 1: out of money. UM. And that's just one of the 487 00:29:47,960 --> 00:29:51,360 Speaker 1: problems with them. Well, despite that, the UM they've grown 488 00:29:51,760 --> 00:29:55,960 Speaker 1: incredibly in popularity in the US Between two thousand three 489 00:29:55,960 --> 00:29:59,720 Speaker 1: and two thousand twelve, the amount deposited I'm prepaid debit 490 00:29:59,720 --> 00:30:03,600 Speaker 1: card went from one billion to sixty five billion dollars 491 00:30:03,800 --> 00:30:07,760 Speaker 1: between two thousand three and two thousand nine years up 492 00:30:07,760 --> 00:30:11,400 Speaker 1: to sixty five billion dollars right from one billion UM. 493 00:30:11,480 --> 00:30:16,640 Speaker 1: And this this despite the easy scam ability, but also 494 00:30:16,800 --> 00:30:20,440 Speaker 1: getting kind of scammed by the people who legitimately run 495 00:30:20,520 --> 00:30:24,120 Speaker 1: these prepaid debit card companies, Like apparently there's fees for 496 00:30:24,200 --> 00:30:28,680 Speaker 1: everything from like loading your card, which you usually do 497 00:30:28,760 --> 00:30:31,560 Speaker 1: it an a t M, using an a t M, 498 00:30:31,640 --> 00:30:36,440 Speaker 1: checking your balance. Um, there's just a lot of additional 499 00:30:36,480 --> 00:30:39,600 Speaker 1: fees that really kind of quickly sapped the amount of 500 00:30:39,640 --> 00:30:43,720 Speaker 1: money on your prepaid debit card. So fortunately UM, the 501 00:30:43,840 --> 00:30:47,880 Speaker 1: Consumer Financial Protection Bureau stepped in and as of the 502 00:30:48,240 --> 00:30:53,200 Speaker 1: last month, is it December yet? Okay? So as of 503 00:30:53,240 --> 00:30:56,240 Speaker 1: October of two thousand and sixteen, there's new rules that 504 00:30:56,400 --> 00:30:59,560 Speaker 1: say that if you are prepaid debit card company, you 505 00:30:59,600 --> 00:31:02,280 Speaker 1: have to disclose your terms up front. You have to 506 00:31:02,360 --> 00:31:06,520 Speaker 1: let people UM find out their balance for free. UM 507 00:31:06,640 --> 00:31:08,800 Speaker 1: cuts on on some of the fees. They have to opt. 508 00:31:08,840 --> 00:31:11,480 Speaker 1: They have to be able to UM have the option 509 00:31:11,520 --> 00:31:15,560 Speaker 1: to not have overdraft charges, overdraft protection. It's a lot. 510 00:31:15,600 --> 00:31:19,240 Speaker 1: It's a lot more regulated now as of last month. Yeah, 511 00:31:19,320 --> 00:31:21,040 Speaker 1: but I wonder what if it's the same thing as 512 00:31:21,080 --> 00:31:24,080 Speaker 1: like banking. If they they're like, sure, we'll disclose that 513 00:31:24,160 --> 00:31:27,600 Speaker 1: in a fifty page document and that no one ever reads. 514 00:31:28,480 --> 00:31:31,360 Speaker 1: Like what they need to do is say how they 515 00:31:31,440 --> 00:31:34,880 Speaker 1: need to disclose this. Yeah, that's true. Some guys to 516 00:31:35,000 --> 00:31:39,160 Speaker 1: come to your house, maybe bring a little dinner and 517 00:31:39,160 --> 00:31:43,440 Speaker 1: and just tell you straight up. All right, I got 518 00:31:43,480 --> 00:31:45,520 Speaker 1: a little worked up, so I'm gonna go splash my 519 00:31:45,560 --> 00:31:49,600 Speaker 1: face with egnog and how many right back after this? 520 00:32:12,320 --> 00:32:15,320 Speaker 1: All right, Chuck. So let's say that you don't feel 521 00:32:15,320 --> 00:32:19,040 Speaker 1: like getting scammed by anybody. Nope, you just want to 522 00:32:19,120 --> 00:32:23,959 Speaker 1: be free. Yeah. Uh, what what can you do? What 523 00:32:24,000 --> 00:32:29,440 Speaker 1: are some of the things you can do? Well, um, 524 00:32:29,480 --> 00:32:31,960 Speaker 1: there are a few things that you can do. You 525 00:32:32,000 --> 00:32:37,440 Speaker 1: can try an alternative currency. So if you want to 526 00:32:37,480 --> 00:32:41,240 Speaker 1: be really weird dollars, that's what you mean. No, I'm 527 00:32:41,280 --> 00:32:45,800 Speaker 1: talking about Well we've talked about bitcoin. Um, is that 528 00:32:45,880 --> 00:32:47,920 Speaker 1: even still a thing? Did that go out? No? No, 529 00:32:48,040 --> 00:32:50,240 Speaker 1: it's still there's much a thing. Yeah, okay, I didn't. 530 00:32:50,280 --> 00:32:53,440 Speaker 1: I think it's just maturing and growing constantly. So we 531 00:32:53,440 --> 00:32:56,680 Speaker 1: did an episode on bitcoin. But I had no idea 532 00:32:56,840 --> 00:33:02,280 Speaker 1: that there are alternative currencies in communities all over the world, 533 00:33:02,680 --> 00:33:05,440 Speaker 1: but right here in the US and had no idea. 534 00:33:06,000 --> 00:33:08,719 Speaker 1: And it's a really cool thing, I think. Yeah, like 535 00:33:08,840 --> 00:33:11,560 Speaker 1: burk shares. You looked into berk shares, right, Yeah, burke 536 00:33:11,640 --> 00:33:14,360 Speaker 1: Shares a very clever name because it is a western 537 00:33:14,400 --> 00:33:20,320 Speaker 1: Massachusetts and the Burke Shears launched in two thousand six. Uh. 538 00:33:20,360 --> 00:33:23,240 Speaker 1: They have sixteen branch offices and four local banks that 539 00:33:23,360 --> 00:33:27,800 Speaker 1: support where you can actually get a berk share trade 540 00:33:27,800 --> 00:33:32,760 Speaker 1: in your money for burke shares um four hundred participating businesses. 541 00:33:34,040 --> 00:33:36,360 Speaker 1: So here's here's what it is, and in fact, I'm 542 00:33:36,400 --> 00:33:39,840 Speaker 1: even gonna read directly from their website because it just 543 00:33:39,880 --> 00:33:42,400 Speaker 1: makes a lot more sense. It can get a little convoluted. 544 00:33:42,760 --> 00:33:46,719 Speaker 1: Can we get some background music? You probably should something 545 00:33:46,800 --> 00:33:49,960 Speaker 1: berk Shire. So there's a five percent discount, and here's 546 00:33:49,960 --> 00:33:53,040 Speaker 1: how it works. They follow a hundred dollars UH through 547 00:33:53,080 --> 00:33:55,880 Speaker 1: a day to explain it. So wait, tell tell us 548 00:33:55,880 --> 00:33:58,120 Speaker 1: when you start the quote. Right, ready, here we go. 549 00:33:59,400 --> 00:34:01,080 Speaker 1: You go to a bank and you purchase your birth 550 00:34:01,120 --> 00:34:03,440 Speaker 1: shares because you want to go to a restaurant that night. 551 00:34:03,520 --> 00:34:07,120 Speaker 1: Let's say, Uh, you go in with ninety five U S. 552 00:34:07,160 --> 00:34:10,759 Speaker 1: Dollars and you say I would like to exchange of this, 553 00:34:10,880 --> 00:34:14,399 Speaker 1: So they give you one hundred birth shares back. Yeah. Right, 554 00:34:14,880 --> 00:34:16,880 Speaker 1: So you go to your dinner, your dinners, let's say 555 00:34:16,880 --> 00:34:19,560 Speaker 1: a hundred bucks right on the nose. The restaurant takes 556 00:34:19,560 --> 00:34:21,960 Speaker 1: your birth shares, takes all one hundred of them. You 557 00:34:22,000 --> 00:34:24,400 Speaker 1: pay your whole bill and your birth shares, and so 558 00:34:24,520 --> 00:34:27,719 Speaker 1: you have actually spent ninety five U S. Dollars for 559 00:34:27,880 --> 00:34:30,160 Speaker 1: a one dollar meal. So you've gotten your little five 560 00:34:30,200 --> 00:34:33,319 Speaker 1: percent discount. Then the owner of that restaurant has that 561 00:34:33,440 --> 00:34:37,160 Speaker 1: hundred birth shares they want to deposit that for real money, 562 00:34:38,320 --> 00:34:41,360 Speaker 1: or let's just say us dollars, return them to that bank. 563 00:34:41,640 --> 00:34:43,560 Speaker 1: They bring him to the bank and the bank deposits 564 00:34:43,600 --> 00:34:46,760 Speaker 1: that hundred birk shares and gives the restaurant the ninety 565 00:34:46,840 --> 00:34:50,560 Speaker 1: five dollars, the same ninety five bucks that you exchange. 566 00:34:50,600 --> 00:34:53,480 Speaker 1: So in the end you get that five percent discount 567 00:34:54,800 --> 00:34:59,319 Speaker 1: because all because of that initial exchange, that same ninety 568 00:34:59,360 --> 00:35:01,920 Speaker 1: five dollars you traded for the Berkshires goes to the 569 00:35:01,920 --> 00:35:05,160 Speaker 1: business where you spend it. Yeah, So that's yeah, and 570 00:35:05,200 --> 00:35:09,200 Speaker 1: that's that's the key to this whole alternative hyperlocal currency 571 00:35:09,280 --> 00:35:13,640 Speaker 1: is that it's intended to keep goods and services and 572 00:35:14,080 --> 00:35:17,160 Speaker 1: within the community. Yeah, because you can't go spend a 573 00:35:17,200 --> 00:35:20,440 Speaker 1: Berkshire anywhere else but the Berkshires. They'll say, what is 574 00:35:20,480 --> 00:35:23,320 Speaker 1: this weird looking bill? Where are you from the future 575 00:35:23,400 --> 00:35:25,319 Speaker 1: or something? And it's actually very cool looking. It's not 576 00:35:25,360 --> 00:35:28,439 Speaker 1: weird looking. I looked it up. The one Berkshire unit 577 00:35:28,640 --> 00:35:33,799 Speaker 1: is uh Mohican, the original inhabitants of the Berkshires. The 578 00:35:33,880 --> 00:35:38,560 Speaker 1: five is W. E. B. Dubois born in Barrington. The 579 00:35:38,640 --> 00:35:44,480 Speaker 1: ten is Robin van In, co founder of the community 580 00:35:44,600 --> 00:35:48,959 Speaker 1: supported Agricultural movement Indian Line Farm. This just keeps getting better. 581 00:35:49,080 --> 00:35:52,719 Speaker 1: The twenty is Herman Melville, awesome, author of Moby Dick. 582 00:35:52,760 --> 00:35:56,840 Speaker 1: Of course. The fifty is Norman Rockwell. Is it a 583 00:35:56,920 --> 00:36:01,359 Speaker 1: Rockwell painting of Rockwell? No, it's just Rockwell. And then 584 00:36:01,400 --> 00:36:05,080 Speaker 1: the one thousand Berkshire it's a photo of him drunk 585 00:36:05,400 --> 00:36:08,560 Speaker 1: on account. Yeah, pretty much. The one thousand Berkshire is 586 00:36:08,760 --> 00:36:14,239 Speaker 1: John Hodgman. Yeah, he's the National Treasure, not just the 587 00:36:14,360 --> 00:36:17,240 Speaker 1: Berkshire Treasure. Now I'm just kidding. There is no one thousand. 588 00:36:17,440 --> 00:36:19,319 Speaker 1: But it's cool. They have their own money, and it's 589 00:36:19,360 --> 00:36:22,160 Speaker 1: like it just is a really really cool thing, like 590 00:36:22,200 --> 00:36:26,400 Speaker 1: you're you're spending. There's, like I said, four hundred participating businesses, 591 00:36:26,840 --> 00:36:30,759 Speaker 1: so it seems like a really successful program. And there's 592 00:36:30,760 --> 00:36:34,200 Speaker 1: a lot others. There's the Toronto Dollars, Salt Spring Dollars, 593 00:36:34,280 --> 00:36:39,080 Speaker 1: Ithaca Hours, uh, but the Berkshire seems to be like 594 00:36:39,120 --> 00:36:41,440 Speaker 1: one of the more robust programs. Yeah, I mean I 595 00:36:41,520 --> 00:36:43,080 Speaker 1: had heard of it before. I hadn't heard of the 596 00:36:43,160 --> 00:36:46,120 Speaker 1: other ones. I think Detroit has one as well, um, 597 00:36:46,160 --> 00:36:48,680 Speaker 1: but the Berkshire's i'd heard of before, so it must 598 00:36:48,680 --> 00:36:50,879 Speaker 1: be doing pretty well well And this is nothing new. 599 00:36:50,920 --> 00:36:54,040 Speaker 1: In the early, like into the early nineteen hundreds, local 600 00:36:54,080 --> 00:36:57,480 Speaker 1: currencies were a big thing. Oh yeah, like every bank 601 00:36:58,040 --> 00:37:02,040 Speaker 1: could legally print money for the federal government finally said no, 602 00:37:02,200 --> 00:37:04,040 Speaker 1: we're really the only ones who can print money. And 603 00:37:04,080 --> 00:37:06,200 Speaker 1: there were I think like a hundred or a thousand 604 00:37:06,239 --> 00:37:09,480 Speaker 1: or ten thousand or some ridiculous amount of currencies in 605 00:37:09,480 --> 00:37:12,600 Speaker 1: the United States up until like the eighteen sixties. Yeah, 606 00:37:12,640 --> 00:37:15,440 Speaker 1: that's crazy. What about the m paisa? Have you heard 607 00:37:15,480 --> 00:37:17,520 Speaker 1: of that before? I hadn't heard of that, but it's 608 00:37:17,600 --> 00:37:21,520 Speaker 1: it's really pretty cool as well. So m paisa is 609 00:37:21,600 --> 00:37:26,759 Speaker 1: stands for mobile paysa paysa means um money in Swahili, 610 00:37:27,280 --> 00:37:31,319 Speaker 1: and it's this kind of new alternative currency that's um 611 00:37:31,560 --> 00:37:33,719 Speaker 1: come up in Kenya in the last few years, right 612 00:37:35,719 --> 00:37:39,680 Speaker 1: right right, I forgot that part. Um. So in Kenya 613 00:37:39,719 --> 00:37:42,319 Speaker 1: most people don't have bank accounts, but they do have 614 00:37:42,480 --> 00:37:45,600 Speaker 1: cell phones and they rely on cash a lot. Well. 615 00:37:45,680 --> 00:37:48,479 Speaker 1: As we said before, cash can be very dangerous. There's 616 00:37:48,560 --> 00:37:50,840 Speaker 1: all sorts of bad guys out there who need or 617 00:37:50,880 --> 00:37:53,160 Speaker 1: want cash for their own But I don't feel like, 618 00:37:53,360 --> 00:37:55,520 Speaker 1: you know, going out and doing anything for aside from 619 00:37:55,600 --> 00:37:59,200 Speaker 1: robbing somebody, right, so cash is dangerous no matter where 620 00:37:59,239 --> 00:38:02,200 Speaker 1: you are, and uh and and pays. It gets around 621 00:38:02,239 --> 00:38:07,000 Speaker 1: that by allowing the people with the cell phone. I 622 00:38:07,080 --> 00:38:11,799 Speaker 1: think it's the country's biggest cell phone provider who's created this. 623 00:38:12,280 --> 00:38:14,960 Speaker 1: And you can go to one of the cell phone 624 00:38:15,000 --> 00:38:18,040 Speaker 1: company's kiosks. There's like a hundred thousand of them around 625 00:38:18,040 --> 00:38:21,959 Speaker 1: the country, and you can say, here's some money, I'd 626 00:38:21,960 --> 00:38:25,359 Speaker 1: like it deposited as credits on my phone, and all 627 00:38:25,400 --> 00:38:27,879 Speaker 1: of a sudden you have a phone full of money. Well, 628 00:38:27,880 --> 00:38:30,000 Speaker 1: the cool thing is you can take that money and 629 00:38:30,040 --> 00:38:34,200 Speaker 1: transfer it via text to somebody else's phone, and it's 630 00:38:34,239 --> 00:38:36,759 Speaker 1: as simple as that. It's as simple as that. You 631 00:38:36,800 --> 00:38:39,319 Speaker 1: go load up your money or your phone with some 632 00:38:39,360 --> 00:38:41,440 Speaker 1: money at a kiosk, and then it's up to you 633 00:38:41,520 --> 00:38:43,759 Speaker 1: to spend that money however you want. And you can 634 00:38:43,880 --> 00:38:47,359 Speaker 1: use your phone to pay things like um for groceries, 635 00:38:47,560 --> 00:38:51,520 Speaker 1: for water, for goods and services, all using your phone. 636 00:38:51,560 --> 00:38:55,400 Speaker 1: It's basically what everyone who's thinking about the future of 637 00:38:55,400 --> 00:38:57,720 Speaker 1: money thinks of when they think of the future of money. 638 00:38:57,840 --> 00:38:59,759 Speaker 1: That there's not gonna be dollars or anything like that's 639 00:38:59,760 --> 00:39:02,920 Speaker 1: all to just be credits associated with your name. In 640 00:39:02,960 --> 00:39:05,799 Speaker 1: this case, with the m PAYSA and Kenya it's associated 641 00:39:05,840 --> 00:39:08,719 Speaker 1: with your phone number. Yeah, and it's a big deal. 642 00:39:08,760 --> 00:39:15,520 Speaker 1: Now it's not just in Kenya, it's in Tanzania, m Mozambique, Egypt, UH, Sootho, Ghana, India, 643 00:39:16,600 --> 00:39:20,920 Speaker 1: UH Democratic Republic of Congo, and then even in a 644 00:39:20,960 --> 00:39:24,879 Speaker 1: couple of Eastern European countries now Albanian, Romania. They don't 645 00:39:24,880 --> 00:39:28,399 Speaker 1: think it will spread west but you never know. It's 646 00:39:28,400 --> 00:39:30,319 Speaker 1: a much bigger deal than anyone thought it was going 647 00:39:30,360 --> 00:39:34,040 Speaker 1: to be. I think, well supposedly the the there's a 648 00:39:34,080 --> 00:39:36,920 Speaker 1: big push to keep it from spreading westward by the 649 00:39:36,960 --> 00:39:40,040 Speaker 1: banking industry because one of the things that makes it 650 00:39:40,080 --> 00:39:43,600 Speaker 1: so attractive is there's really low overhead involved in this 651 00:39:44,160 --> 00:39:47,920 Speaker 1: and so the the self, the cell phone company is 652 00:39:48,000 --> 00:39:52,280 Speaker 1: charging very little interest or fees, so it's way cheaper 653 00:39:52,320 --> 00:39:56,120 Speaker 1: to borrow or get or use money through the m 654 00:39:56,160 --> 00:39:59,200 Speaker 1: pays the system than it is through traditional banks. Apparently 655 00:39:59,320 --> 00:40:02,279 Speaker 1: m pays is just kicking their butts all over the place. Yeah. 656 00:40:02,320 --> 00:40:04,480 Speaker 1: And of course what has happened then is that the 657 00:40:04,520 --> 00:40:08,719 Speaker 1: banking lobby has started barking all over the world to 658 00:40:08,800 --> 00:40:12,520 Speaker 1: block things like MPAs are from coming into their markets. Yeah, 659 00:40:12,560 --> 00:40:15,040 Speaker 1: that's what I'm saying, because they would just completely undermine them. 660 00:40:15,040 --> 00:40:19,279 Speaker 1: And again, this is basically the future of money. That 661 00:40:19,360 --> 00:40:22,839 Speaker 1: there's credits associated with your name, which I mean if 662 00:40:22,880 --> 00:40:27,799 Speaker 1: you if you bank virtually online, um, where you your 663 00:40:28,000 --> 00:40:32,080 Speaker 1: get your paycheck electronically and you pay your bills um 664 00:40:32,560 --> 00:40:37,160 Speaker 1: over over websites and all that, like, that's you're already there. Basically, 665 00:40:37,480 --> 00:40:40,160 Speaker 1: it's just dressed up to kind of look like what 666 00:40:40,239 --> 00:40:42,279 Speaker 1: you think of as money too, but it's still it's 667 00:40:42,360 --> 00:40:45,359 Speaker 1: just credits and numbers associated with your name and in 668 00:40:45,360 --> 00:40:48,040 Speaker 1: this case bank account numbers. This is just with your phone, 669 00:40:48,280 --> 00:40:50,319 Speaker 1: and it also removes the bank because it puts it 670 00:40:50,360 --> 00:40:53,520 Speaker 1: on your phone. So it's up to you a lot 671 00:40:53,560 --> 00:40:59,160 Speaker 1: more closely. Shout out to our our episode on currency. 672 00:40:59,520 --> 00:41:03,560 Speaker 1: Yes that was a good one. Shout at um. So 673 00:41:03,640 --> 00:41:06,200 Speaker 1: then there's this other thing. If you want to get 674 00:41:06,239 --> 00:41:10,080 Speaker 1: a little more hippie dippy even um, if you thought 675 00:41:10,120 --> 00:41:13,479 Speaker 1: berkshires were crunchy, prepare for the Yeah, I get ready 676 00:41:13,520 --> 00:41:16,399 Speaker 1: for time banking. Uh. Time banking is a thing where 677 00:41:16,440 --> 00:41:19,560 Speaker 1: you uh, it's a given give and take an exchange 678 00:41:19,600 --> 00:41:23,720 Speaker 1: of services, with the core principle being it's all equal. 679 00:41:24,480 --> 00:41:28,640 Speaker 1: So if I babysit for your kid, you build my deck, 680 00:41:29,280 --> 00:41:33,480 Speaker 1: and the hours are the same that the the value 681 00:41:33,520 --> 00:41:37,200 Speaker 1: per hour is the same, right, no matter what you're doing, 682 00:41:37,560 --> 00:41:40,320 Speaker 1: it's a value. It's a an hour of your time 683 00:41:40,400 --> 00:41:43,920 Speaker 1: and effort. So it sounded kind of cool. It's like 684 00:41:43,960 --> 00:41:48,200 Speaker 1: a barter service exchange where basically all you have to 685 00:41:48,200 --> 00:41:50,280 Speaker 1: do is get people to agree on that core principle 686 00:41:51,160 --> 00:41:53,799 Speaker 1: and then you have kind of the same cool thing 687 00:41:53,840 --> 00:41:57,640 Speaker 1: going on in your community. Um. So I went to 688 00:41:57,680 --> 00:42:00,080 Speaker 1: their website and there's these little there's a map if 689 00:42:00,080 --> 00:42:02,880 Speaker 1: you can view by map, like the places where you 690 00:42:02,880 --> 00:42:07,879 Speaker 1: can time bank, and I clicked on. Boy, I feel 691 00:42:07,920 --> 00:42:11,240 Speaker 1: like I clicked on about fifty of them, and none 692 00:42:11,239 --> 00:42:14,600 Speaker 1: of them had any activity within like three or four years. 693 00:42:15,239 --> 00:42:17,160 Speaker 1: I could see that. So I don't know if time 694 00:42:17,200 --> 00:42:21,000 Speaker 1: banking took off like they thought. And so then I thought, 695 00:42:21,040 --> 00:42:22,840 Speaker 1: you know what, maybe I'm looking in the wrong places. 696 00:42:23,480 --> 00:42:27,000 Speaker 1: I was like, let's go to like Burlington, Vermont, And 697 00:42:27,080 --> 00:42:30,880 Speaker 1: sure enough, Burlington had had some time banking going on 698 00:42:30,960 --> 00:42:34,680 Speaker 1: in like the last week, but other places in Vermont didn't. 699 00:42:34,719 --> 00:42:36,720 Speaker 1: I was like, let me go to some really crunchy towns, 700 00:42:37,560 --> 00:42:40,319 Speaker 1: and a couple of them looks like they were still 701 00:42:40,400 --> 00:42:42,880 Speaker 1: using it. But it doesn't look like I don't know 702 00:42:42,880 --> 00:42:45,319 Speaker 1: when this article is written, but I'm not sure how 703 00:42:45,400 --> 00:42:48,080 Speaker 1: viable it still is. Well, I mean, I like the 704 00:42:48,080 --> 00:42:52,080 Speaker 1: the sentiment as a concept. It's cool. But but I mean, 705 00:42:52,400 --> 00:42:58,000 Speaker 1: is are all hours of there, all types of effort equal? 706 00:42:58,840 --> 00:43:01,120 Speaker 1: If you agree that they are, they are? I mean, yeah, 707 00:43:01,200 --> 00:43:03,759 Speaker 1: sure in that case, for sure, But I I it 708 00:43:03,840 --> 00:43:07,920 Speaker 1: just seemed ripe for introducing like um leechers and and 709 00:43:08,520 --> 00:43:12,239 Speaker 1: hard feelings and resentiment and stuff like that. Yeah, I 710 00:43:12,320 --> 00:43:15,319 Speaker 1: got is he like, well, you fix my fridge, I'll 711 00:43:16,239 --> 00:43:19,400 Speaker 1: I'll watch your driveway. What do you mean you know, 712 00:43:19,440 --> 00:43:21,200 Speaker 1: I'll stand out there and watch it, make sure it's good. 713 00:43:21,280 --> 00:43:25,200 Speaker 1: I'm a driveway watcher. It's an hour. Did you say challenge? 714 00:43:25,239 --> 00:43:29,239 Speaker 1: Did you say washer? No? No, no watcher. Rain Showers said, 715 00:43:29,280 --> 00:43:34,200 Speaker 1: we can't challenge each other's hours. Uh. And then we 716 00:43:34,239 --> 00:43:37,200 Speaker 1: got to finish up with this dude, Mark Boyle, the 717 00:43:37,280 --> 00:43:42,439 Speaker 1: moneyless Man yep, which I thought this was pretty admirable. Yeah, 718 00:43:42,480 --> 00:43:45,080 Speaker 1: he's He's written a couple of books, one called I 719 00:43:45,160 --> 00:43:48,200 Speaker 1: think the first one was called The moneyless Man Colin 720 00:43:48,320 --> 00:43:51,920 Speaker 1: A Year of Free Economic Living, and then a more recently, 721 00:43:52,000 --> 00:43:57,760 Speaker 1: one called What Have I Done? The more recently called 722 00:43:58,160 --> 00:44:02,080 Speaker 1: The Moneyless Manifesto. Uh, both of which are available for 723 00:44:02,120 --> 00:44:05,359 Speaker 1: purchase unnoticed. But the money doesn't go to him. They 724 00:44:05,400 --> 00:44:07,799 Speaker 1: just dump it into a landfill and it goes to him. 725 00:44:07,960 --> 00:44:10,919 Speaker 1: But in his uh, I don't want to slag him. 726 00:44:10,920 --> 00:44:14,239 Speaker 1: He does offer it completely free online. Oh that's cool. 727 00:44:14,239 --> 00:44:16,080 Speaker 1: If you want to read it for free, uh, it said, 728 00:44:16,200 --> 00:44:18,359 Speaker 1: or if you'd like to support the author, you can 729 00:44:18,360 --> 00:44:22,839 Speaker 1: buy the paperback. So he was, Um, he basically just said, 730 00:44:22,840 --> 00:44:25,160 Speaker 1: I'm gonna live without money for three years. Yeah, it's 731 00:44:25,160 --> 00:44:27,359 Speaker 1: like an experiment. He's like, Uh, have you ever heard 732 00:44:27,400 --> 00:44:29,920 Speaker 1: of a J. Jacobs? Is that the guy who traded 733 00:44:30,000 --> 00:44:33,160 Speaker 1: up from a paper clip to a house? No, he's 734 00:44:33,200 --> 00:44:35,800 Speaker 1: just uh, he's a writer in uh in New York 735 00:44:35,840 --> 00:44:38,920 Speaker 1: that has done Um. I mean I think they call 736 00:44:38,960 --> 00:44:42,120 Speaker 1: it stunt writing, which cheapens it a bit. I think 737 00:44:42,360 --> 00:44:45,319 Speaker 1: because he's awesome, but um, yeah, he'll do things like 738 00:44:45,440 --> 00:44:48,399 Speaker 1: he did one called the Year of Living Biblically, where 739 00:44:48,440 --> 00:44:51,719 Speaker 1: he completely just lived according to the Bible's practices and 740 00:44:51,719 --> 00:44:54,160 Speaker 1: stuff like that. So a J like is probably down 741 00:44:54,200 --> 00:44:56,400 Speaker 1: with this Mark Boil guy, because a J lives in 742 00:44:56,440 --> 00:45:00,960 Speaker 1: New York, so he wouldn't live moneyless, No, I don't. 743 00:45:01,120 --> 00:45:03,879 Speaker 1: Yeah he Mark Boyle went out to the woods, right, Yeah, 744 00:45:04,040 --> 00:45:07,759 Speaker 1: well he a j listens to the show. Oh hey, 745 00:45:08,560 --> 00:45:11,680 Speaker 1: um so this Mark who Mark Boyle may listen to 746 00:45:11,680 --> 00:45:14,920 Speaker 1: the show. Who knows if it is free? Um? But 747 00:45:15,120 --> 00:45:17,480 Speaker 1: he uh he went out and lived in the woods 748 00:45:18,120 --> 00:45:25,520 Speaker 1: and sustained himself through farming, foraging, em bartering, right and 749 00:45:25,719 --> 00:45:29,160 Speaker 1: um he basically just said like like money doesn't exist 750 00:45:29,160 --> 00:45:32,080 Speaker 1: to me, not like, uh, you could give me money 751 00:45:32,120 --> 00:45:34,160 Speaker 1: and I can use it for something like that. Like 752 00:45:34,200 --> 00:45:37,320 Speaker 1: he just didn't use money at all. And apparently he 753 00:45:37,360 --> 00:45:40,040 Speaker 1: said he was way happier during this time, like it 754 00:45:40,080 --> 00:45:42,279 Speaker 1: made him more creative. He had to get by with 755 00:45:42,320 --> 00:45:44,680 Speaker 1: his personality or on his personality, so had to make 756 00:45:44,719 --> 00:45:46,839 Speaker 1: sure it was a good one. Yeah, that one that 757 00:45:46,920 --> 00:45:51,040 Speaker 1: really jumped out at me is something beneficial? Like I 758 00:45:51,040 --> 00:45:53,080 Speaker 1: didn't think about that. Like he literally was, like my 759 00:45:53,160 --> 00:45:59,920 Speaker 1: currency was was me and my character, And how can 760 00:46:00,120 --> 00:46:02,359 Speaker 1: not work on that if that's what you're counting on? 761 00:46:03,080 --> 00:46:05,880 Speaker 1: Can't be a jerk to everybody, right, you know you 762 00:46:05,960 --> 00:46:08,200 Speaker 1: gotta like you gotta be a good person. Yeah, No 763 00:46:08,239 --> 00:46:10,600 Speaker 1: one wants to give a jerk. A free bag of carrots. 764 00:46:11,840 --> 00:46:14,759 Speaker 1: You know that's a T shirt. Sure he's Irish by 765 00:46:14,760 --> 00:46:17,919 Speaker 1: the way too, which means he's a great person. Right. 766 00:46:18,360 --> 00:46:23,040 Speaker 1: Maybe he was at our show in Dublin that wasn't free. No, 767 00:46:23,320 --> 00:46:25,720 Speaker 1: I guess he could have snuck in this theft count. 768 00:46:26,080 --> 00:46:29,800 Speaker 1: I wouldn't mind. He would have had to have explained 769 00:46:29,880 --> 00:46:34,600 Speaker 1: himself that we take stow aways. We do. Don't encourage that. 770 00:46:34,719 --> 00:46:38,120 Speaker 1: You're like, we didn't talk about this. Ah, you got 771 00:46:38,120 --> 00:46:43,080 Speaker 1: anything else? I got nothing else. Let's see, don't feed 772 00:46:43,160 --> 00:46:48,120 Speaker 1: your baby's junk food or alcohol wise words across the board, yes, 773 00:46:48,160 --> 00:46:51,200 Speaker 1: no matter the episode agreed. If you want to know 774 00:46:51,280 --> 00:46:53,600 Speaker 1: more about living without a bank account, you can take 775 00:46:53,680 --> 00:46:55,640 Speaker 1: those words in the search bar at how stuff works 776 00:46:55,680 --> 00:46:59,000 Speaker 1: dot com. And since I said how stuff works, it's 777 00:46:59,000 --> 00:47:04,960 Speaker 1: time for listening amount. I'm gonna call this uh cool 778 00:47:05,000 --> 00:47:09,200 Speaker 1: email from cool Kid. Hey guys, I am Ryan uh 779 00:47:09,360 --> 00:47:14,040 Speaker 1: Gun Sorrowsky. I'm sixteen years old. I don listened to 780 00:47:14,120 --> 00:47:17,279 Speaker 1: your show, UM since two thousand and ten, when I 781 00:47:17,280 --> 00:47:20,880 Speaker 1: was just ten years old. Absolutely, I wanted to email 782 00:47:20,880 --> 00:47:24,000 Speaker 1: you guys for so long, UM, and I'm finally doing that. 783 00:47:24,280 --> 00:47:26,759 Speaker 1: I found your show through my cousin, and when I 784 00:47:26,800 --> 00:47:29,160 Speaker 1: first started listening, I downloaded all the podcast to my 785 00:47:29,200 --> 00:47:32,040 Speaker 1: small iPod, all that could hold, and I listened almost 786 00:47:32,120 --> 00:47:34,960 Speaker 1: every night before I go to sleep or to go 787 00:47:35,040 --> 00:47:37,600 Speaker 1: to sleep with wonderful learning and entertainment, and you two 788 00:47:37,640 --> 00:47:40,200 Speaker 1: are masters of So I like this kid all over 789 00:47:40,280 --> 00:47:42,839 Speaker 1: the I do too. Last year, you came to Philadelphia 790 00:47:42,920 --> 00:47:45,680 Speaker 1: for the live show on Public Relations and I was there. 791 00:47:46,320 --> 00:47:48,480 Speaker 1: I was in awe to see you do your show live. 792 00:47:49,719 --> 00:47:51,640 Speaker 1: When I was there, I got me thinking I should 793 00:47:51,680 --> 00:47:54,520 Speaker 1: complete my task of emailing both of you. So he 794 00:47:54,600 --> 00:47:56,360 Speaker 1: came up with an idea and how to share his 795 00:47:56,440 --> 00:48:00,360 Speaker 1: story with how he's diagnosed with type one diabetes on 796 00:48:00,400 --> 00:48:03,720 Speaker 1: August seven, fourteen. He said, with that came a different 797 00:48:03,920 --> 00:48:06,280 Speaker 1: world than the one I knew before. It was tough, 798 00:48:06,360 --> 00:48:08,640 Speaker 1: but I knew that others would Type one. I've had 799 00:48:08,640 --> 00:48:11,360 Speaker 1: it so much harder than I. I'm doing well and 800 00:48:11,400 --> 00:48:14,160 Speaker 1: I'm healthy, which is something I'm proud of. Another reason 801 00:48:14,160 --> 00:48:16,239 Speaker 1: I'm writing is maybe you could take this on as 802 00:48:16,239 --> 00:48:19,799 Speaker 1: a topic, maybe a two parter, Type one as one 803 00:48:19,840 --> 00:48:22,760 Speaker 1: part in Type two as another. Not a bad idea, 804 00:48:22,880 --> 00:48:24,879 Speaker 1: not a bad idea. The reason I want to make 805 00:48:24,920 --> 00:48:26,800 Speaker 1: that request is that a lot of people don't understand 806 00:48:26,840 --> 00:48:29,560 Speaker 1: the difference between the two and you two being the 807 00:48:29,560 --> 00:48:32,160 Speaker 1: best at explaining things that I know. I thought you 808 00:48:32,160 --> 00:48:37,560 Speaker 1: could totally explain it excellently. Man, this kid has mastered flattery. 809 00:48:37,840 --> 00:48:39,959 Speaker 1: He's the best. He's I like this guy a lot. 810 00:48:40,440 --> 00:48:42,400 Speaker 1: You have shaped my mind. You too, have shaped my 811 00:48:42,400 --> 00:48:44,239 Speaker 1: mind from the very start. Keep doing what you're doing 812 00:48:44,280 --> 00:48:49,720 Speaker 1: and keep being the best. Much love, Ryan gunt Siowski 813 00:48:49,960 --> 00:48:54,439 Speaker 1: from Pennsylvania. Thanks a lot, Ryan, We appreciate that. If 814 00:48:54,640 --> 00:48:56,560 Speaker 1: you want to put this on listener mail, I wouldn't mind. 815 00:48:56,680 --> 00:49:00,320 Speaker 1: Wink wink, nudge nudge. What a cool guy. Yeah, he's 816 00:49:00,360 --> 00:49:03,120 Speaker 1: a cool dude, Ryan. We appreciate it. We will put 817 00:49:03,160 --> 00:49:06,560 Speaker 1: that on the great list of ideas and maybe we'll 818 00:49:06,600 --> 00:49:08,399 Speaker 1: do that one day. Yeah. And you know what, Ryan, 819 00:49:08,400 --> 00:49:10,000 Speaker 1: if we ever come back and do a show and 820 00:49:10,239 --> 00:49:12,440 Speaker 1: Philly or anywhere near you that you can get to 821 00:49:13,080 --> 00:49:16,239 Speaker 1: you my friend or on the guest list. Nice, You'll 822 00:49:16,280 --> 00:49:19,600 Speaker 1: just have to remind us of that hi writing us 823 00:49:19,640 --> 00:49:22,879 Speaker 1: and saying hey give me free tickets in the subject line. 824 00:49:23,120 --> 00:49:26,799 Speaker 1: Chuck will be like, wait, who are you? You will 825 00:49:26,880 --> 00:49:29,319 Speaker 1: have to show us some idea, though, because there's so 826 00:49:29,360 --> 00:49:31,640 Speaker 1: many people who will try to fake it. Now, yes, 827 00:49:31,680 --> 00:49:33,320 Speaker 1: and you will probably have to come with your parents 828 00:49:33,360 --> 00:49:37,120 Speaker 1: and that'll probably be the tickets are left thunder. Okay, 829 00:49:37,160 --> 00:49:40,240 Speaker 1: so we've hammered all this out. This is a thrilling 830 00:49:40,360 --> 00:49:43,160 Speaker 1: end to this episode. If you want to get in 831 00:49:43,200 --> 00:49:46,080 Speaker 1: touch with this, like cool dude, Ryan did, you can 832 00:49:46,120 --> 00:49:49,480 Speaker 1: tweet to us I'm at josh um Clark and then 833 00:49:49,560 --> 00:49:51,759 Speaker 1: the official s y s K one is s y 834 00:49:51,880 --> 00:49:54,239 Speaker 1: s K podcast. You can hang out with Chuck on 835 00:49:54,280 --> 00:49:57,880 Speaker 1: Facebook at Charles W. Chuck Bryant or Stuff you Should Know. 836 00:49:58,640 --> 00:50:00,960 Speaker 1: You can send us an email this podcast at howstuf 837 00:50:01,000 --> 00:50:02,920 Speaker 1: Works dot com and has always joined us at our 838 00:50:02,960 --> 00:50:12,239 Speaker 1: home on the web, Stuff you Should Know dot com. 839 00:50:12,239 --> 00:50:14,759 Speaker 1: For more on this and thousands of other topics, visit 840 00:50:14,800 --> 00:50:24,680 Speaker 1: how stuff Works dot com