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

You're still solvent.

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

I have 4 billion in residential CDOs, collateralized debt obligations.

They serviced the loans.

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

Helps bring it down.

The bank was profitable.

So that's bankruptcy.

You go get bankruptcy protection.

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

We would create incentives for securitization.

It can do it through debt or equity.

Over the next few years big decisions will be made in Washington on jobs, the economy, taxes and deficits, energy, education, war and peace.

Payable to the City of San Francisco.

But unlike mortgages, a lot of corporate debt, they just pay the interest.

My next presentation, I'm going to take it to a further

And to stop it crashing over the last two to three decades, we've expanded the money supply, expanded credit and debt, so that people can keep buying stuff.

So it buys, it buys debt.

What is your strategy in your household?

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

Now let's say it gets even worse.

It's exciting, but we went over our finances and...

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

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.

This guy, he does have interest.

You can sell shares.

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

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.

They would actually owe this extra 1 million.

I can no longer fulfill my obligations.

So we still have the same amount of debt.

So, each of these is an investor.

What are my liabilities?

These are the people who first lose money.

That man borrows money from many lenders.

That man is a heavy debtor.

That man has many debts.

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

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

And because it's a junkier rating, no one is going to want to buy it.

We would just know that there is a 20 chance.

Even if it were able to offload these loans, it still does not have enough money to satisfy all of the demand deposits or all of the liabilities.

All we did was, we paid the interest on the debt in this example.

And just for the sake of it,