Have a surplus? Take two tax cuts, roll back some regulations and call us in the morning.

But this I just want to show you some data here.

If someone doesn't pay the debt, then the insurance company will pay it for you.

liabilities.

So that's bankruptcy.

You go get bankruptcy protection.

Well everyone knows that it's not going to be exactly 10 .

Or 1 and 1 2 , that's the same thing as 1 .

External debt something that I can tell you a long story about because I personally worked on one of the biggest debts on the continent has come down dramatically.

And let's say that's all of their liabilities.

Do you have an address?

It can do it through debt or equity.

And it got bailed out by the sovereign wealth fund.

Is the Bond still negotiable?

You're still solvent.

They serviced the loans.

So it buys, it buys debt.

And so when the Federal Reserve or any Central Bank prints money, and it buys debt, it goes out into debt markets and it buys it, it usually buys the safest kind of debt, but that affects all of the debt markets, it goes out and buys in the debt market, they're essentially shifting the supply curve of money to the right, they shift the supply curve to the right.

It allows let's say this group of borrowers let's say this pool of borrowers right here actually didn't

Because the government now owns 90 something percent of the company.

I'll draw it as a dollar bill, right over there they hand the U.S. Treasury money, and then the U.S. Treasury gives them an IOU.

Because that's essentially what a credit default swap is, it's insurance on debt.

Now let's say that Company x has also borrowed some money.

For the liability side of my balance sheet

We would create incentives for securitization.

Payable to the City of San Francisco.

So I really do have a positive equity of 11,000.

Helps bring it down.

Maybe debt that you have to pay in the next year.

Our economy grew from 2000 to 2007 on the back of consumers massively overborrowing.

And of those 20 that default, we have a 50 recovery.

But over the course of the last several decades, we were just borrowing other people's output.

You have 189,000 as the value of this equity.

Now let's say it gets even worse.

Because I was so poor,

The bank was profitable.

So that's what we're going to show you in the presentation on collateralized debt obligations.

What is your strategy in your household?

Because that's when, on average, people tend to move or refinance.

You can sell shares.

They would actually owe this extra 1 million.

This guy, he does have interest.

That means that you've increased your Accounts Payable by 100.

And they say we're going to borrow a billion dollars in one month notes.

And let's say there's 10 billion of debt that they borrow from some other party.