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.

And then when we go and get the property because the

So just in kind of our everyday personal finance world, your mortgage is actually secured debt.

And the bank thinks it got a great deal.

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

And I'll be willing to give this as collateral.

Mortgage backed security.

Two weeks in the future, and then I'm going to sign the check and I'll write it's for a payday loan and I'll write 625 etc. etc., then I have my little information here.

Leverage.

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

Central Europe, unsecured.

And you end up with a mortgage backed security.

And that's essentially what the Fed was doing.

Was it a correct decision?

I have a whole video on mortgage backed securities.

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

We would create incentives for securitization.

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

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.

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

We'll borrow some money on the house.

We'll use the house as collateral so we can borrow some money.

I think it's a distraction.

I'm not so sure you want the maintenance and safety department. The fire department might be a better bet.

And that company has the right to payments that are secured by mortgages.

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.

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.

What we are going to do is go buy things like highly rated mortgage backed securities, or things like commercial paper, AAA corporate debt, so that those things, the interest on those things goes down.

You can actually do this type of a structure with any type of debt obligation that's backed by assets.

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.

They feed me info.

Is sent over by the Coast Guard In charge of the food here

These were conforming loans, there wasn't this whole CDO and mortgage backed security market.

For the right interest rate and for the right assumptions in my model, I'm willing to give anybody a loan, as long as I'm compensated for it enough.

And because it's a junkier rating, no one is going to want to buy it.

Director Galloway, our national security advisor

We hold the bond on Jessup Dolly, and now he's a runner, it looks like.

This is me.

Currently maintained by Alexander. Neundorf Alexander. Neundorf. mail

I've just lost my job.

The welcome you gave me was surly,

So what they say is, Sal, we're only going to give you this loan, but this loan has to be backed.

And, you know, Iceland, it was never going to cut it.