Let's say I make another loan for 300.

Rick Mm hmm.

Hey, Lone Ranger.

Did you get the loan?

Who knows?

I can pay off my bank loan!

So we get a 50 recovery.

The mortgage...

How many payments will it take to pay off this loan?

Let me just do one more loan.

OK, so now we're in an interesting situation.

They didn't make loans and then sell the loans.

I want more time

I got a mortgage. I got car payments.

Empress of the Lone Islands!

Maybe a billion of these are a loan from bank B.

And let's say you still owe pretty close to 150 thousand on the loan to the bank your loan might have even been an interest only loan but even after a year or two you're probably not going to pay down the balance of your loan too much it might be like 140 thousand, or 145 thousand

Or they might even start to buy things that aren't Treasuries.

I suffered from my mortgage loan.

Let's say I make out some loans for different projects.

less value to this guy.

This is a Treasury bond.

And just to be clear, so the asset within this entity are the loans.

It's only worth 100,000 now.

Well I have the original mortgage on my house.

I do not need a loan anymore.

I don't need a loan anymore.

I no longer need a loan.

But definitely until about 2006.

I loan it out to people who have really good projects or investments.

Well, I could keep making loans until I have 3,000 gold pieces of demand deposits.

Most of the loans we're familiar with in our personal

Let's say it's um let's say its 10 billion of commercial mortgages.

I took a loan against the equity that

Can you pay off your loans in a year?

Everyone pooled in.

We don't need to invent solutions because we have them cash flow loans based in income rather than assets,

We know, even in this quote, unquote, tough real estate market, they could have sold it for 250,000.

So they just kind of held fast and didn't sell their CDOs.

So let's say, this person goes to a bank.

So let's think about how we manage our money.

So right here are a whole bunch of people's mortgages.

So what just happened?

What, bullets?

So, each of these is an investor.