And that future date is at maturity.

And make it out to Ice Station Zebra Associates. That's my loanout.

Well, we've all heard about what they are, I think, and we all know they're used quite a bit by people and companies who are trying to avoid paying their proper dues to society, also known as taxes.

I'm getting 10 per year from Corporation B, and then I have to pay 1 to AlG.

A security is an ownership that's tradable in a company.

They'll get the debtor in possession financing so that the company has some cash to operate, pay the bills, and pay the employees and whatever else.

I borrowed money from the company's cash reserve.

Let's say Pension Fund 1 were to lend 1 billion to A.

And then year 10, I pay the 100,000 plus I pay back the 1 million.

AlG also insures their debt that they gave to Corporation C.

So what they do is out of this 10 , they pay them some of the basis points.

Choice 3, I am going to pay you I'm making this up on the fly as I go I'm going to pay you 20 today.

In a present period, you are willing to pay a higher Price to Earnings ratio if the company is growing.

So actually, let me do that.

Charge this to my company.

And as long as a company doesn't go bankrupt, they'll pay me some interest and pay me my money back.

And you're probably asking, what do you get paid back for not liquidating it?

I probably wouldn't have noticed if you hadn't pointed it out.

And you say, this group of the CDOs, they'll get the first payments. or if any payments that go, immediately go to this very senior tranche, right?

I'd like to pay the check, please.

I'll pay with travelers' checks.

They are one of the first people to get their money.

The purchase is on the company's account.

Or FedEx.

Let me do that in red.

You're left with 500,000 of pre tax income.

So then you have to make the decision.

That will now compound over the next month.

I'm gonna go left, you're gonna go right, you understand me?

The company president was indicted for paying kickbacks.

He is a member in good standing.

And I kind of jumped the gun a little bit.

Look,I only have 100 dollars, I have this customer, I'm doing thec atering for him this month.

So if theshareholders are wiling to pay 21.50 share for Ben's stock, and there are 10,000 shares in Ben's company

AlG didn't say, you know what, out of all of our assets, here is 1 billion that we're going to set aside, just in case

This guy's incentive is to say, no, this company is worth a lot.

So on day zero, you have a 200,000 loan.

I'd like to pay with my credit card instead.

So it's a little bit more complicated than just saying, oh, look at that, they're giving a 6 coupon, which essentially means twice a year they're going to give me 3 of the value of my bond.

Because after you've paid your final payment, you're done paying off the house.

And because it was about providing financial services to foreign students, they actually understood something about their credit score, about social security number,

So what's in this corporation?

From the mighty eBay, the grandfather of exchange marketplaces, to car sharing companies such as GoGet, where you pay a monthly fee to rent cars by the hour, to social lending platforms such as Zopa, that will take anyone in this audience with 100 dollars to lend, and match them with a borrower anywhere in the world, we're sharing and collaborating again in ways that I believe are more hip than hippie.

But just answer your question, in the event of your death your family does not see the savings portion, they only get this payout right over here.

So we've collectively borrowed 1 billion from the bank.