I majored in Student Loans.

So 9 million in loans.

Kiva facilitated 500,000 in loans.

We have 3 billion in loans.

They didn't make loans and then sell the loans.

So, corporate loans, or loans to corporations or banks.

Corporate loans tend to be for simplicity purposes, interest only loans.

They serviced the loans.

loans, they're not liquid.

Those loans aren't available.

loans to this bank.

Can you pay off your loans in a year?

In this case, Bank A had some loans from

I get loans, credit cards, all in your name.

But the investment bank, they're not in the business of servicing loans or keeping loans on their balance sheets.

Two of those other loans, they came due, no one was willing to renew the loans, or give them new loans.

You're assuming interest only loans.

They bought all these loans.

loans to his customers, whatever.

And I don't make loans.

And for the sake of simplicity, I'm going to assume that the loans in this presentation are interest only loans.

Most of the loans we're familiar with in our personal

And then they'll sell the loans.

Let me start making loans out.

In October of '05, after those first seven loans were paid,

Interest on loans is high at present.

So I'm going to sell these loans.

It has 1 billion of loans outstanding.

Because it's a thousand loans out there.

Bank D had loans to Bank A.

These are loans to the federal government.

Maybe people aren't getting mortgage loans still.

I paid off my college loans, everything.

I don't want to say total liabilities because the bank could take out loans that aren't demand loans.

They probably took some fees or sold the loans for slightly more than they issued the loans for.

So these 4 billion in liabilities, these are loans, maybe from other banks.

Everyone wants to collect their loans from everyone else and no one wants to give loans to anybody else.

And they go for another guy for loans.

And this is what home equity loans are.

They're pretty much all loans to the government.

But they're loans for different amounts of time.

So they weren't giving away loans for free.

The government will provide interest free loans to firms that participate in the program.

The entire corporation gets the mortgage payments on the 1 billion in loans, right?

Whatever loans these were, they just weren't good loans and I realize I'm not going to get 300 gold pieces back.