And you say, this group of the CDOs, they'll get the first payments. or if any payments that go, immediately go to this very senior tranche, right?

And then year 10, I pay the 100,000 plus I pay back the 1 million.

So what they do is out of this 10 , they pay them some of the basis points.

loans, they're not liquid.

Choice 3, I am going to pay you I'm making this up on the fly as I go I'm going to pay you 20 today.

So actually, let me do that.

It's 32.50, I'll pay for it.

But in 1995, these people find five new families that go buy the house.

I probably wouldn't have noticed if you hadn't pointed it out.

I'd like to pay the check, please.

I'll pay with travelers' checks.

And so it would essentially be I gave them 100 thousand maybe to do some work for me it would be a transfer of money by giving a loan and then keep forgiving over and over it would be completely identical to giving someone a gift, which is taxed, or giving someone some type of income

...this weekend and pay for the parts?

Let me do that in red.

And as you see, as months go by, when you pay the mortgage note and I show that right here, this mortgage payment.

You're left with 500,000 of pre tax income.

I paid 10 dollars for it.

That will now compound over the next month.

Let's say I earned 100,000 in a year.

I can pay for the damage, if ever so bad.

You worked for us, but I'll tell you what, we'll sell it to you.

So people are paying a discount to the number we just calculated.

I'm gonna go left, you're gonna go right, you understand me?

Everything is risk free.

Look,I only have 100 dollars, I have this customer, I'm doing thec atering for him this month.

That would be a certificate that's an IOU from a company.

On the contrary, passengers themselves must pay.

If I buy, if I directly buy a bond from a U.S. corporation, I'm essentially lending that money to the corporation.

The same thing applies to the costs for infrastructure.

So on day zero, you have a 200,000 loan.

They're private entities, that are actually paid to rate things.

I'd like to pay with my credit card instead.

So it's a little bit more complicated than just saying, oh, look at that, they're giving a 6 coupon, which essentially means twice a year they're going to give me 3 of the value of my bond.

We can pay if you have some food to spare.

Because after you've paid your final payment, you're done paying off the house.

Just make sure we get paid.

But just answer your question, in the event of your death your family does not see the savings portion, they only get this payout right over here.

So we've collectively borrowed 1 billion from the bank.

So for example

So he makes 2,000.

I'll pay them whatever they ask.

And you pay a little bit extra on that, to bring this value down.

But in the old model, the bank would keep these payments itself.

Your payment is now two months overdue.

So let's figure out what that present value is.