So a security in the equity world is a stock.

Savings bonds.

Could I have a transfer?

They're savings bonds.

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

Now let's say that Company x has also borrowed some money.

And if buying debt seems like a weird thing to say, buying debt is the same thing as lending money (lending money).

We would create incentives for securitization.

This could have been a straight debt from a bank, or this could have been via a bond issue.

But then there's a very fundamental difference in what the holder of the bond is doing.

May I see your claim tags?

Please present your claim tags.

Have a surplus? Take two tax cuts, roll back some regulations and call us in the morning.

You can't get it on Yahoo!

It can do it through debt or equity.

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

Here are your boarding pass and your baggage claim.

But kind of the one that people always talk about, I guess in the same phrase, is bonds.

And let's say that's all of their liabilities.

There's very little chance of them defaulting on their loans.

And we came up with this idea of issuing bonds, press freedom bonds.

I feel secure when I invest in stocks but not bonds.

And this pension fund had the same problem.

So it's essentially this is an IOU from Company XYZ.

liabilities.

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

And we said there's different kinds of debt.

It might have been structured so that Corporation A right here, before even issuing the bonds, they include this insurance with the bond.

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.

Finance, you type in the ticker symbol and you get the price for that day.

I have a whole video on mortgage backed securities.

And what is a bond?

Of course, if enough people start defaulting, even these people start to get hurt.

And so when the Federal Reserve or any Central Bank prints money, and it buys debt, it goes out into debt markets and it buys it, it usually buys the safest kind of debt, but that affects all of the debt markets, it goes out and buys in the debt market, they're essentially shifting the supply curve of money to the right, they shift the supply curve to the right.

So what you do is you have, let's say, the 6 million.

Liquid means it's very easy to buy and sell those securities in large quantities.

And let's visualize what a bond certificate could look like.

And the environment might be things like the stock market or the bond market or the commodities market.

Once you have all of that put together, there's not one reason why you couldn't actually have a marketplace for all of that, where you cannot dispose of all of those bonds in a pretty quick way.

bishop?

There is a price.

So this is essentially you have the government, you have the government, it has two sources of revenue that it can spend it has money from taxes, it has tax revenue, and then it can go out and borrow money, and so it also has access to debt markets.

And it could be divided into you could divide this into 6,000 bond certificates.

And I kind of jumped the gun a little bit.