And they borrowed the money essentially from a special purpose entity.

But there wasn't actual aggregate savings going on.

You'll sell the house and you'll pay it off, even though you can't pay the mortgage anymore.

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

This right here is the debt, or essentially the principal payment on your mortgage, or how much do you owe to the bank.

We all have heard of it.

And I think that kind of common wisdom comes out of the notion of, when you have a mortgage or when you borrow money to live in a house, every month that money that you give to the bank is kind of going into savings.

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

So when you think of it this way, when people say home ownership, they really aren't homeowners yet.

Well, the values of their house went up, and they borrowed against the value of their house.

And that caused housing prices to go up.

So I need to borrow 750,000.

And when I say buy a mortgage it means the home owners who borrow the money instead of the money going to the mortgage broker whom the home owner think they got the loan from the servicer who they think they are paying the check to.

Residential Area

Home Address

The mortgage...

So with that in mind, I've constructed this model.

So of course, what matters in a home?

Whatever you think, probably the inflation rate.

why.

Home Address City

Home Address Country

Home Address Label

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

Imran's no dummy, so he does the same thing. He raises his price to 2.

We'll talk later about amortization schedules and how can you pay down the debt.

They probably had that.

If you look at the major categories they have food and beverages, housing

Home Address Street

You know, Chelsea West.

Preferred, then Home Address

There's a lot of pressure to buy.

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

So it's not just a promise to get money.

You know, we take out these loans to buy houses.

But we'll talk more about it in the future.

Nope. Bill collectors.

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

Home Address Post Office Box

Then he walked slowly up the street, and then down again to the corner, still

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

So let me just say population.

We will be developing prefab houses.

Now you've been casing that family's house for months...

So essentially, I borrowed 80,000 from the bank.