We would create incentives for securitization.

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

I have a whole video on mortgage backed securities.

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

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.

It can do it through debt or equity.

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.

Because the government now owns 90 something percent of the company.

The 400 million senior tranche we raised from 1000 senior securities, collateralized debt obligations.

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

External debt something that I can tell you a long story about because I personally worked on one of the biggest debts on the continent has come down dramatically.

This is the retiree health care benefits.

So what we're going to do is we're going to insure this bond.

But this I just want to show you some data here.

There's no law that says, you know what, if you insure a billion dollars of debt, you have to put a billion dollars aside.

America's foreign debt shot past 500 billion.

That's not always the case.

You might just want to watch the video on mortgage backed securities and collateralized debt obligations if you need a refresher there.

You're still solvent.

They serviced the loans.

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

And then this is the thing that I really wanted to highlight, that it also had 4 billion of residential collateralized debt obligations.

So the 300 million from equity, they're going to get 55 million assuming that there are no defaults or pre payments or anything shady happens with the securities.

But essentially what happened is the investors in the mortgage backed securities provided the money to the special purpose entity to essentially loan to the borrowers.

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.

Soon there will be thousands of my people here.

Helps bring it down.

Now let's say it gets even worse.

And to stop it crashing over the last two to three decades, we've expanded the money supply, expanded credit and debt, so that people can keep buying stuff.

I will not guarantee what Immigration will do, but I can guarantee what I will do.

(Laughter)

They would actually owe this extra 1 million.

So given that 2 on 100,000 debt.

So that's bankruptcy.

You go get bankruptcy protection.

It allows let's say this group of borrowers let's say this pool of borrowers right here actually didn't

Certification

Guarantee? What guarantee?

So a security in the equity world is a stock.

So we still have the same amount of debt.

Over the next few years big decisions will be made in Washington on jobs, the economy, taxes and deficits, energy, education, war and peace.

Payable to the City of San Francisco.

So, each of these is an investor.

Wouldn't it be great if we could do that more systematically?