They serviced the loans.

Bored? ! This is essential routine maintenance.

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

What is your strategy in your household?

Now let's say it gets even worse.

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

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

So, each of these is an investor.

You're still solvent.

That man borrows money from many lenders.

That man is a heavy debtor.

That man has many debts.

The bank was profitable.

We would just know that there is a 20 chance.

Helps bring it down.

Maintenance

They would actually owe this extra 1 million.

So that's bankruptcy.

You go get bankruptcy protection.

These are the people who first lose money.

We would create incentives for securitization.

It can do it through debt or equity.

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

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.

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

Website maintenance

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

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

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

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

That's not always the case.

That's where the 1 billion comes from.

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.

I know I've overdrawn this picture a little bit too much.

I can no longer fulfill my obligations.

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

So we still have the same amount of debt.

Maintenance

And this is what this mortgage backed security market allows.

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

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.