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

That's how loans worked before the mortgage backed security industry really got developed.

We would lower standards on what it took to get a mortgage.

Mortgage backed security.

Annual rate of security

So what we're going to do is we're going to insure this bond.

learning only too late that something was wrong.

It seems the government's looking for Harry.

Those are essentially derivative securities that are derived from mortgage backed securities.

And it makes sense.

And you end up with a mortgage backed security.

And what is a bond?

We would create incentives for securitization.

T bill if it's a shorter duration,

So it's going to be 6,000 times 1,000 bond certificates.

But it is just like a stock.

I have a whole video on mortgage backed securities.

So a security in the equity world is a stock.

This is an example here

But if the Fed wants to inject more cash, it can now buy different types of securities.

I only have two minutes left in this presentation, so in the next presentation I'm going to focus on what this guy can now do with the loan to turn it into a mortgage backed security.

They have good credit etc etc.

This is highly rated mortgage backed securities, maybe they have a slightly higher interest rate.

We're not so sure he took anything except the cash.

The prize will go to the man who is to write the story of Suvorov's campaigns.

The policy number of my insurance is PC two three five seven.

It can do it through debt or equity.

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

Treasury bond if it's a longer duration.

And in return, they're going to get 10 on their money.

In contrast, the Federal Reserve's credit easing approach focuses on the mix of loans and securities that it holds and on how this composition of assets affects credit conditions for households and businesses.

Oh, no.

I'm an investigating accountant for the S.E.C.

That's why it's called open market operations.

Well, it entitles me to 1 100 of what this corporation gets.

So these shares each of these one million shares this is a mortgage backed security.

Here are your boarding pass and your baggage claim.

Andrew,you'll analyze the SEC filings.

Since when does the sec investigate car accidents?

But you should watch the videos on mortgage backed securities and collateralized debt obligations, if you want to get a better understanding of exactly how the money flows go.

loan, because this isn't a traditional loan, an interest only loan but for the sake of this presentation, how it's different than a mortgage backed security, the important thing to realize is that the bank would have kept the loan.

I think it's a distraction.

We're from the Securities and Exchange Commission.

And we said there's different kinds of debt.

And I'm doing this just to show you a point