The math is a little bit more difficult with that, so what we're going to do in this case is assume that I only pay the interest portion, and at the end of the loan I pay the whole loan amount.

Rick Mm hmm.

Hey, Lone Ranger.

Did you get the loan?

Now one thing I want you to keep in mind is, they get 10 only if every one of these borrowers pays their loans, never defaults, never pre pays.

I can pay off my bank loan!

And I have 250,000 in cash.

So I stick them all inside of that.

Let's say I make another loan for 300.

The mortgage...

Countrywide is just being a transactional.

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

And let's say, I don't know, a year later I lose my job.

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!

So that's what an asset is.

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

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

Companies that have really good cash flow.

Who knows?

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

And they'll look at the historical default rate.

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

I took a loan against the equity that

Or actually, let's go even before that.

Precondition

Precondition

Before it happened.

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

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?

So we get a 50 recovery.

What, bullets?

I'm thinking about people's jobs, about their mortgages and pensions and their college funds for their kids.

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

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