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What is collateral? Any type of asset or property that a borrower pledges as security for a loan is classified as collateral. As the lender has a claim, or lien against the collateral in the event of a default by the borrower, this secured loan will usually cost the borrower less interest charged than if the loan was unsecured.
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Transcript
- 00:00
Karl Marx was a fiercely bearded German economist and philosopher.
- 00:07
seriously look at beard .fierce. with the help of his equally bushy pal Friedrich [Marx pictured]
- 00:12
angles Marx wrote a little book that would have enormous influence on the
- 00:16
Russian revolutionaries of the early 20th century. that book of course was
- 00:21
called Little House on the Prairie. it's just making sure you're with us. it
Full Transcript
- 00:26
was actually called the communist manifesto. so let's break it down .the
- 00:30
world according to Marx suffers because of social classes. well in the Western
- 00:34
world we started with feudalism as the class system .if you were a king life was
- 00:39
groovy. if you were a serf and not so much. feudalism crashed and burned and
- 00:45
capitalism rolled in with its booze huazi and proletariat classes. well
- 00:49
according to the Communist Manifesto capitalism was much much much worse than
- 00:54
feudalism. why ?because the booze huazi or owners are the means of production who [communist manifesto pictured]
- 00:59
embraced capitalism would do anything to make a dollar.
- 01:02
this included dehumanizing abusing and manipulating the proletariat or worker
- 01:07
class who toiled on their behalf. so Marx and Engels believed that capitalism
- 01:12
caused enormous suffering and hardship in the modern world. furthermore it
- 01:16
caused corruption because the government was essentially in cahoots with the
- 01:19
bourgeoisie. thanks to the unfairness inherent in capitalism Marxism states
- 01:24
that the proletariat and bourgeoisie will forever be butting heads .more
- 01:28
importantly that tension will eventually result in a revolution of the masses. and
- 01:33
just what would that revolution look like? well Marx and Engels had a few
- 01:37
ideas .there would be no private ownership of land. there would be no
- 01:42
inheritance rights. the state would control the means of communication and
- 01:46
transport .and instead of laboring in factories kids would go to school where
- 01:50
they'd get a free education. the communist manifesto posits that Marxism
- 01:55
would succeed where other forms of socialism had failed because communists
- 01:59
would always put the proletariat first. furthermore other forms of socialism
- 02:04
were nothing more than programs for small reforms .if the ship of the worker [different ships with different forms of government written on sails]
- 02:08
was going to be set right full-blown an all-out revolution was needed.
- 02:13
and that's what Marxism was all about. Marx and Engels like to think that
- 02:17
Germany would be ground zero for the proletariat takeover.
- 02:20
they probably rolled over in their graves when Hitler came to power, but
- 02:24
never fear the Communist Manifesto was a home run for one group. da the Russians.
- 02:29
at the turn of the 20th century there were two divisions of the Russian social
- 02:34
democratic Labour Party .the Bolsheviks and the Mensheviks many of whom had been
- 02:39
kicked out of Russia for being naughty revolutionaries spent about a decade
- 02:42
meeting in pubs in London. over a nice warm pint they'd argue about whose
- 02:47
interpretation of Marxism was correct and what the best method for taking over
- 02:52
Russia was .well frankly we would have picked somewhere tropical for our
- 02:55
communist revolution but well to each his own. while the Mensheviks and [Castro pictured]
- 02:58
Bolsheviks both wanted Russia to ditch capitalism and the Czar their
- 03:02
medium-term goals were quite different. well the Mensheviks wanted to work with
- 03:06
Russian officials already in office to build a kind of democratic system that
- 03:11
would make Russia a better place for everyone. Bolsheviks wanted to burn it
- 03:15
all down. well if you're wondering where Vladimir Lenin is and all this wonder no
- 03:19
more it was at the head of the Bolsheviks. he thought the Mensheviks
- 03:22
were wusses and that Russia's communist government would need to be small and
- 03:27
tightly controlled so that the masses wouldn't rebel. anywho after all those
- 03:32
years of plotting abroad the Mensheviks and Bolsheviks finally saw an
- 03:35
opportunity to get things going in 1917. and viva la revolucion. but that's for [mob of Russians protest]
- 03:41
another video. what, you thought we'd give you all the fun stuff right now?
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