Buy Now, Pay Later: Echoes of the 2008 Recession

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Information Buy Now, Pay Later: Echoes of the 2008 Recession

Title	:	Buy Now, Pay Later: Echoes of the 2008 Recession
Lasting	:	40.59
Date of publication	:
Views	:	796 rb

0:00 The Rise of Buy Now, Pay Laterbr6:01 Generational Tipping Pointbr11:58 House of Mirrorsbr19:32 Castles in the Skybr24:12 The BNPL Flywheelbr30:43 Of Their Own Accordbr36:47 Boiling Frogs
Comment from : Modern MBA

I really don't understand the appeal That money is going to come out of your bank account eventually brbrThe only benefit I've derived from buy now/pay later was when I was still a minor and couldn't have more than $150 pending on my card Pay in 4 was a good bypass for that, but I only did it when I already had sufficient money in my account
Comment from : Colonial

I only have a debit card By choice Never got suckled into this stuff So satisfying to buy with cash
Comment from : Pauline Jackson

It as nothing to do with lack of trust in modern banks and more easy of access in payments and checkout systems
Comment from : Olly D

Buying stuff this way is insane WTF are people thinking to get a loan for small consumer goods or groceries? There isn't much that is dumber than that
Comment from : Vickie Phelps

All sponsorships are scams Promoting such a scam without any warning up front is very irresponsible for a channel supposedly giving sound financial advice
Comment from : TheRealPSKilla502

That was a really shitty transition into that ad I kind of expected better from you
Comment from : NightshadeQS

I think masterworks is more of a pyramid scheme than trustworthy placements A bit like NFT, but a lot less important Fight me
Comment from : Emilie Poirier

I use Affirm for big purchases but I try to avoid it the best I can But it's easier for me to pay that off than a credit card for some reason 🤷‍♀️
Comment from : Megan Jones

That sponsor ad was sneaky as hell Completely destroyed the legitimacy you built previously in your video
Comment from : Hamza Petridis

What a joke Breaking down good topic only to sidetrack it with sneaky ad by the scammaz Masterworks Shame on you
Comment from : Lucie Greening

Affirm murdered my credit
Comment from : Butter Jockey

I'll just use my credit card and get rewards lol
Comment from : Ian Martinez

Accumulating interest for minimal payments for longer time for whats most likely CLOTHES online is absolutely fucking crazy
Comment from : kronk

Hey, I really enjoy this channel but the sponsor plug in here is sketchy af Honestly it makes me want to unsub It also puts you at legal risk fwiw Please treat your audience with respect
Comment from : Lauren Greg

A channel like this shilling for Masterworks is so funny
Comment from : Jordy Lont

Nothing comes for free Since customers are going to be paying the price of the product anyway, smart ones save on interest with the classic :"Save now, pay later!"
Comment from : lyfthis

I remember seeing "buy now, pay later" options for pizza and groceries a few years back and that's about when I decided that we're ultimately screwed and there's no way the real economy is doing very well
Comment from : idfkdude

Giving me jake tran vibes with that ad If you want to be taken more seriously don't take sponsors that are related to the argument of the video, but also do some research before, please Apart from that it was a great video
Comment from : Francesco

Bro that Masterworks ad was pretty sketchily thrown in
Comment from : Iron Smith

Ad starts at 18:00
Comment from : Phoenix Motors Fanbase

I always wondered how people afford all these unnecessary luxury items in their lives, and the answer is that they can't
Comment from : thevoidzzz

Just want to mention that if anyone is thinking about getting loans hoping that whoever owns the loan goes bankrupt thinking that would free them, you will still have to pay but just to whoever bought your debtbrI know someone who has a lot of long term loans thinking they're being a genius and that one day they will be free from paying back everything
Comment from : Skylark Kraken

Just fyi, BNZ is actually owned by an Australian company Kiwibank is the only true NZ based bank in NZ, although BNZ is pretty big in NZ 31:01
Comment from : 1lbastone

How do you have so little credit, i think you might have something in your credit history they aren't twlling you about I'm 24, and i have credit lines in total of $65,000
Comment from : Marge

The lesson here is don’t buy it if you can’t afford it
Comment from : Whoisangel

Absolutely loved this whole video! I always wanted to know the ins and outs of that industry Appreciate your hard work on this!
Comment from : Raul Carbajal

Bro cmon man, how did we go from talking about affirm to a terrible ad transition to masterworks or whatever
Comment from : Great 4ever

Think before buy
Comment from : A A

We are fucked War is coming
Comment from : TTBOn00bKiLleR

Buy now pay later always felt predatory for me, though i do think its cool that affirm doesnt charge late fees Imagine paying off a loan for an item you no longer have or use because reasons Building up all sorts of payment plans until you are paying off as much as you already earn Financing has its places, particularly for large purchases, but using buy now pay later for something stupid like $400 shoes or a $500 hair dryer, why?brbrIts really shallow how people feel the need to feel rich or to show off Those $400 shoes look the same as a $20 pair of shoes, except now that i spent so much on shoes, i'd be afraid of using them
Comment from : Darth

That masterworks ad really really needs to be labeled, it just sounds like financial advice, when it is in fact paid promotion To my understanding it is illegal evenbrbrThe video itself is good, but I cannot recommend it to anyone while it has shit like this
Comment from : ceilidhDwy

The US is 25 of the world's retail spending? That makes me sick to my stomach
Comment from : Earl

Jesus that sponsor portion was atrocious
Comment from : A2L112

The strangest part to me is because here in Brazil this way of payment is the most normal way to pay things with credit cards, we use “parcelamento” for everything I work in a clothing store, and it is so common that every time there is a customer asking to "pay later" the payment in amounts of 3$ (15R$), 10$ (15R$), but where I work the fees for payment machines are expensive, so we only accept payments above 20$ (100R$) to cover the price of fees When Apple Pay later arrived I was shocked how a means of payment so common for me is not even considered for most Americans
Comment from : Edu Ribeiro

You’re still spend 400$ on a dumb pair of shoes
Comment from : poprdog s

I rather buy from tele operators, because there's no extra expenses
Comment from : TheMarkusAT

In regard to our credit system, I feel the biggest flaw has always been in the lack of education in it I’m just under 23 years old and could not be happier with my credit score, and that’s because I started my credit history at 18 and have made only ever made manageable charges While credit gives you more access to capital it doesn’t incentivize you to spend more than you have, it penalizes you for it Just watching a simple video on how a credit score works will have you set for life barring any hard times or financial irresponsibility Great video!
Comment from : Ryan Kuechle

16:40 "I can afford to burn $90 every two weeks! Thats like two runs to the grocery store!!"brYou'll starve with no food for the next two months, but at least you can show off your trendy sneakers
Comment from : Haweater

The way YouTubers these days transition to talking about their sponsors and having the need to make it sound like they use them is becoming worry some brMaybe doing your research and when satisfied just letting your subs know your sponsor offers such and such alone is good enough, no need to overly promote it or try hard to create a seamless transition brbrWe all know they are paid sponsorships, we hear about them on other YouTube channels, and you all are beginning to sound the same
Comment from : eddy mens

These companies are plain evil They profit off of the baser instincts and lack of financial education of poor people, by obfuscating the unaffordability of items they don't need
Comment from : Max

Lol at a video promoting masterworks while discussing the issues with pay over time models
Comment from : M Dub

When millennials are forced to repay their student loans because of short sighted boomers liquidity will truly dry up
Comment from : joseph shaw

To me this came across more as an ad for affirm etc A lot of advantages to consumers were touted, and from your description of their business, the way to profits is clear -- reduce origination fees, increase merchant fees, increase interest charges The zero rate loans were great for customer acquisition, and with their current branding they can reduce the amount of those
Comment from : g

Idk why but I’ve been given way way too much credit I’m at like 50k between my two cards! Maybe it’s because I’m in Canada They don’t even do hard credit checks It seems like every time I call up they are like oh by the way I see you have a pending credit increase, do you want to apply it I always say yes because I don’t spend much and I heard having a lower percentage credit utilization improves your credit score and I don’t change how much I spend
Comment from : Bryce

I should have gotten into online dildo sales back in the early 2000s
Comment from : Jesse Hicks

After having credit cards since 24, I was delighted to find out after 11 years I finally achieved my dream of a perfect 850 credit score recently!brbrI admit I'm not personally into paying interest or living beyond my means with BNPL My style and strategy are probably pretty boring, but they work for me and that's what matters
Comment from : Tom McMorrow

I really got to know Did you really buy a Dyson hairdryer?
Comment from : Stanny Lou

Huh, so I guess if you are bad with money the pay in four services can screw you up It's personally made making large purchases way easierbrI just have to know when my paycheck is, when the bill will come and for how much It also helps to have a savings for just in case
Comment from : Phoebe Aurum

Its disgusting how people live to spend every dollar of their paycheck and stretch it past their means like extending car payments to 72 months+ or breaking up one time luxury purchases into recurring payments rather than just buying what you can afford now or wait a couple months and save for it brbrI have never paid for something I couldnt pay off in the next credit cycle I made like $35k a year and lived by myself paying $1k in rent at one time People dont live within their means
Comment from : TopShot501st

If you want to make people understand this video you need to make it shorter and use simpler language that "normal" people understand This gobbledygook talking is what gets the uneducated into financial trouble They just sit and shake their heads like they understand what the lender has told them and sign the paperwork It is a good effort but, even I couldn't sit through the whole thing Give it another try Thanks for the video
Comment from : Cathy Eller

Sounds like you should have gone with American Express and not Chase Have had a card since age 20 and my interest has never been above 12 and my credit limit goes up automatically every couple of years without even asking
Comment from : olandir

Love the video but that ad kinda tainted it for me
Comment from : Cameron

Just my 2 cents: retailers will hike prices to compensate for 2-5 fees from BNPL companies, so it all goes at the expense of those who pay in cash…
Comment from : Efisio Piantacarote

Telling folks to buy art through this masterworks vs index funds is just terrible advice really ruined this video even if it’s an ad
Comment from : Quality Comments Zone

i just don't get the point of these ,, like if your whole lifestyle is out of your budget, eventually those payments are gonna catch up to you it makes sense with big purchases you're only gonna make a few times a year or less but i feel like these are being used for everything
Comment from : zenfri

I worked on automated customer onboarding and business rules for one of BNPL, I was basically testing the process by going to a jewellery store with zero dollars in my pocket and walking out with a huge debt within 5 minutes, minus actually completing the purchase
Comment from : Tokoroa3420

Nice
Comment from : Dan C

I'm a simple man, if I can't afford something, I can't afford it
Comment from : Smashy_24

I have to say if a new company does not have afterpay I will not be purchasing anything from them
Comment from : WTF A

i thought this channel might have been good butbrwatching this again him pay 400+ plus for shoes the are basically flat top conversesbrbeing born in china and seeing those same shoes being sold for 20 yuanbrman i got suckered in to this channel brffs
Comment from : Jay Tang

Sounds like the main difference between Buy Now Pay Later versus traditional finance is that traditional finance admits to being traditional finance, whereas Buy Now Pay Later claims to be somehow different
Comment from : Nemo

Masterworks isn't worth the cheese under my balls
Comment from : RaximusRex

You were doing so well until you started peddling investment advice you don’t understand Masterworks is a joke Rich people don’t buy art as an investment; they buy it as a status symbol to hang in their house or because they love the art Telling the average unsophisticated investor to check out Masterworks is a bad idea The returns you referenced are cherry picked and it’s not a status symbol for someone to say they own 0000001 of a Picasso
Comment from : GetpaidGohome

Masterworks is a dubious sponsor especially for this type of video lol
Comment from : Baltej Bains

MAsterworks is the epitome of the Onion article from 2008 post crash, "Americans Demand New Bubble"
Comment from : sunalwaysshinesonTVs

Isn't the recession avoided? Brandon came through with New World Order funds
Comment from : Potatotenkopf

4 in 5 americans use it? no way i'm believing that - how did you get that stat? just because 200 million loans were taken out doesnt mean that's the amount of people that use the service also probably doesn't account for people using multiple services i personally would never use one and i dont know anyone personally that does either, or at least would admit it
Comment from : Joshua Suhaimi

This is scary
Comment from : D P

Personally, I like using buy now and pay later services for making purchases that I can afford to make right now The reason is the opportunity cost The longer I can avoid spending my money, the more savings account interest I accrue I've used Affirm once for a mattress purchase and am being charged zero interest across 12 months Since my bank's interest rate exceeds the credit card points I could earn (and has always done so, even in low interest environments), it made sense to use Affirm However, this does not mean the services are not predatory I just think that insofar as they exist, there are worthwhile ways of using them
Comment from : COCOCAT TACOCOC

The irony of this video being sponsored by MasterWorks
Comment from : Ahmed N Ibrahim

I love klarna because it doesn’t report utilization to the credit bureaus I use it whenever I shop, but I don’t buy anything I don’t already have the money to buy
Comment from : Yella Diamond

Can't wait for masterworks to end up like all youtuber great investment schemes to end up in the shitter Masterworks is a ponzi scheme Why? Art produces nothing, it's value only go up until people figure out there is actually nothing, now masterworks needs suckers to hop in and bid up, more suckers bid up more prices go up until people realize they are buying nothing and most people will loose their money
Comment from : domitry jobby

173M global users but also 4 out of every 5 Americans? Check your numbers lol
Comment from : Ethan S

I found that if I pay off my car before the end of the month when the balance posts, it does not help my credit score
Comment from : John Hinton

Youre suppose to be reliable yet u r sponsoring masterworks???
Comment from : Forgotten Ones

If you use it effeciently, it is not bad Mind you, getting a washer to save time and money, use it on the no interest option, and pay off rapidly, never do payments on more than one thing at a time I got my washer and drier that way no interest, set up house rooms that way before family visits no interest, and I may use it for education since klarma can be used on some courses
Comment from : FolkishAppalachian

it's hard to be a respectable channel when you sneak in a masterworks ad like that it's so obviously a very shady looking type of venture too
Comment from : fox inuasha

Only reason I'd do saving account is the higher saving ratesbrThat's WHAT the bank should be offering us
Comment from : Timberwolfe

BMbrB ,kr 🎉
Comment from : MeanBeanMachine13

Lol but what does your debt matter when its fallout new vegas?
Comment from : Danny Gruesome

I've never heard anyone pronounce Adidas like that
Comment from : OrbGoblin

I’m both a fan of “buy now, pay later”, and also not brbrI’m smart enough at least to only utilize this style of purchasing on actually large purchases, and therein with at LEAST half of the sum total in savings ready to go after the initial installment (in the event of an unforeseen circumstance, such as an injury or vet bill) brbrOn the other hand, my mother uses it for just another everything under the “I’ll pay the rest later” — from groceries to Amazon buys, much like is criticized under “irresponsible spending”
Comment from : TheAspieFox

It's literally just the subprime mortgage insanity all over againbrbr1 Loan money to everyone and their mother, even when they clearly can't repay thembr2 Claim your are totally as "valuable" as the combined theoretical payout of these loans w/ interestbr3 Trade your "value" as financial assets and derivatives for big cash on the marketbr4 Everyone and their mother inevitably fail to repay the loans, "value" of assets instantly goes to zero, market crashbr5 You made billions at the low low cost of ruining the economy
Comment from : The_Blazer

Funny thing is Chinese government is also made up of people so by that logic, I guess the Chinese government cannot also be trusted 😂
Comment from : Miguel Manzur

Its freaky how many people I know use the buy now pay later method I already use my credit card sparingly, mainly on occasion for gas, groceries or if i get takeout, I would never use it for non essentials It already felt kind of obvious these were predatory, thank you for basically confirming with more info than I could ever really know how to explain
Comment from : Nymphinia

Next on my recommendation is "The problem with Masterworks" by the plain bagel Lol
Comment from : Malik Bagwala

If you don't NEED a particular thing and you are not comfortable in paying the full price up front, you cant afford it Period
Comment from : Malik Bagwala

I'm disliking just because of that sponsor
Comment from : Jour ,Contre-Jour

Credit card without the card
Comment from : ThatsAwesome

lol this dude is pimping masterworks If you are an expert why dont you dig into it?
Comment from : filterdecay

" I was baffled when he started to talk about investing in art , until I realized it was a sponser "brbrBtw great content , It gives more knowledge about this BNPL and some economy info related to them,
Comment from : Stacie Freshener

The more things change the more they stay the same
Comment from : Malthizar

4 out of 5 using BNPL, shocked me Actually, I cannot Verify online this claim I just find an article from fox news without reference
Comment from : David Tagliaferri

99 sure that ad would be illegal in the uk :)
Comment from : Allie Howe

There should be no payment for healthcare in the first place!
Comment from : Peter Weisenbacher

This is how you know a big recession is coming People cannot afford many of their purchases because of an inflated economy
Comment from : BJ

I‘ll never understand why BNPL-Services became a thing Just buy it if you have the money, in the end you have to pay them anyway
Comment from : Cheesus