They have no money down, 1 million loan, subprime, negative amortization, they had no credit rating, etc, etc.

Yeah. He was truly gifted.

I bought this TV on the installment plan.

Look!

I bought this TV on the installment plan.

He has natural gifts.

If we put a four in that equation...

It's alright

What about me?

The mortgage...

Rick Mm hmm.

Hey, Lone Ranger.

Did you get the loan?

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

I want more time

I got a mortgage. I got car payments.

Empress of the Lone Islands!

There's still dead bodies

I can pay off my bank loan!

You haven't any freedom.

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

When you have a brilliant mind, you have a special obligation.

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

Let's say I make another loan for 300.

So we get a 50 recovery.

Who knows?

Hey, what were you guys doing?

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

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

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

What, bullets?

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

Home equity line, 30,000. That's 1 37,000.

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

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

Interest on loans is high at present.

Let me just do one more loan.

Do you own outright, do you have a mortgage?

The loan carries 5.5 interest.

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

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

Then I also have these CDOs.

less value to this guy.

This is a Treasury bond.

Beemer leased for 1,200 a month. He was three months behind on payments.