So a security in the equity world is a stock.

Savings bonds.

They're savings bonds.

So it's going to be 6,000 times 1,000 bond certificates.

I feel secure when I invest in stocks but not bonds.

But then there's a very fundamental difference in what the holder of the bond is doing.

And if buying debt seems like a weird thing to say, buying debt is the same thing as lending money (lending money).

We would create incentives for securitization.

And we came up with this idea of issuing bonds, press freedom bonds.

They might have issued maybe they issued a million bonds where each of those essentially represent a debt of 80.

You can't get it on Yahoo!

It can do it through debt or equity.

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

But kind of the one that people always talk about, I guess in the same phrase, is bonds.

And we said there's different kinds of debt.

There's very little chance of them defaulting on their loans.

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.

And what is a bond?

Finance, you type in the ticker symbol and you get the price for that day.

So what was happening at that state, is that the kinetic energy, the heat, was being used to essentially break these bonds.

So it's essentially this is an IOU from Company XYZ.

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

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

They enable their teachers to make innovations in pedagogy.

But it was, technically speaking this is an aside

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And let's visualize what a bond certificate could look like.

There is a price.

Once you have all of that put together, there's not one reason why you couldn't actually have a marketplace for all of that, where you cannot dispose of all of those bonds in a pretty quick way.

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

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

I'm buying a treasury bond, means I'm implicitly lending that money, if I buy the bond directly from the government, that means I'm lending that money to the U.S. government.

I have a whole video on mortgage backed securities.

And we learned that debt securities are often called bonds.

They don't even have to get rich yet.

And I kind of jumped the gun a little bit.

And I can sell them.

So what you do is you have, let's say, the 6 million.

But intuitively this is exactly what you'd expect.

Currency and bond markets are relatively calm.

And the environment might be things like the stock market or the bond market or the commodities market.

Bonds are also traded.

If you can think of stellar masses for luminosity then that means that mass to

And it could be divided into you could divide this into 6,000 bond certificates.

But you should watch the videos on mortgage backed securities and collateralized debt obligations, if you want to get a better understanding of exactly how the money flows go.