Diet shakes and candy bars.

This kind of diagram is called a balloon race.

So, if I were to draw a balance sheet for someone's house, it would look something like this.

And it is, to prevent rickets and so on.

That's going to have amazing impacts.

I'm only going to get 50 gold pieces back.

So this is x plus 40 and this is minus 40, and they're clearly supplements of each other.

All of these banks, each of these kind of represents the balance sheet of a bank.

Sal Whatever's left over is your equity.

I care about the assets.

And that loan wouldn't be a bad idea because if this person isn't lying about their balance sheet, or I'm not

But the underlyingconcepts really aren't that fancy.

This is kind of my whole personal balance sheet.

So we had 1 million and then we raised 10 million more.

Let me explain it.

Or assets minus liabilities is equal to equity.

Frankly, it doesn't have to be a bank.

So I'm going to describe what illiquidity means to you.

I'm a bit of a health nut.

But we can see I've drawn a bunch of balance sheets before and I think this is a good time to draw a balance sheet.

That's not too hard to value.

And this isn't the balance sheet just for my house.

I know you did because half of Americans do every day.

Let me draw another series, another balance sheet.

So in this situation, what are my assets?

And the difference between is kind of like your wealth.

So going into day 10, this is his balance sheet

And just so you don't get confused, there's always a

But anyway, I won't make social commentary.

So let's see where we left off.

But anyway, back to where we were in the example.

So in this situation, what happens?

Day 10, he decides to cover.

And all companies don't have the same amount of shares.

And let's say these are its assets right there.

Should you eat organic meats or should you be eating tofu?

There's the income statement and the other two are the balance sheet, which I have drawn a lot in a lot of the other explanations I've done on the financial crisis and whatever else.

But we'll just assume we start a corporation.

I only have 650,000.

Before I go to try to get the house.

So what happens?

But let's just assume, for simplicity, that a ton of banks in the system have this identical balance sheet.

Let me scroll down a little bit.

Obviously, this is simplified.

But that's getting too philosophical.