He wants to talk to you. I think it's about all those loans you've been approving.

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

The mortgage...

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

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!

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.

I took a loan against the equity that

I can pay off my bank loan!

Then I also have these CDOs.

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

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

Let's say I make another loan for 300.

So we get a 50 recovery.

Who knows?

Well I have the original mortgage on my house.

And for the sake of simplicity, I'm going to assume that the loans in this presentation are interest only loans.

Let's say I'm some type of the Investment Bank.

Everyone pooled in.

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

lender, that has maybe similar terms.

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

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

What, bullets?

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

This is monthly interest rate.

I suffered from my mortgage loan.

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.

This is really the tip of the iceberg.

But I have ideas, like, I did, I went to the college here, Stanford.

But for the simplicity of this argument,

But definitely until about 2006.

I know that I owe you 150 thousand

My initial work focused on Uganda, where I focused on negotiating reforms with the Finance Ministry of Uganda so they could access our loans.

I paid off the mortgage when I got my promotion.