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

This is the retiree health care benefits.

That assets, A for assets, is equal to

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

It could be a whole set of people.

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.

The amount of money you get.

Manage your finances, accounts, and investments

It should start to make a little bit of intuitive sense

You're still solvent.

They serviced the loans.

Or the other way to view it is, assets minus liabilities is equal to equity, right?

So this is just another visual representation that

And then the equity is, essentially we would look at this formula.

My recommendation is that you invest in government bonds.

Investment

liabilities.

Now, who are they accountable to?

We would create incentives for securitization.

Payable to the City of San Francisco.

Helps bring it down.

So the only liability is this 5,000.

Malibu Equity and Investments.

Well their intention was to take these home equity loans and put that money to work, invest it in some way.

You have 189,000 as the value of this equity.

Now let's say it gets even worse.

He valued what we already had at 5 million dollars.

What is your strategy in your household?

This is 120,000 in equity, market value of equity, he has another 105,000 in liabilites.

They're valuing these assets at 1 million.

Investing in professional development is not a cost.

As investors flee

Investing.

liabilities plus equity is equal to assets.

Well everyone knows that it's not going to be exactly 10 .

So that's bankruptcy.

You go get bankruptcy protection.

These are my assets.

This guy, he does have interest.

My liabilities would be 145,000.

Maybe I can get 20 a year.

Insolvency is when you actually, because of bad investments, you actually end up with less assets then do have liabilities and then there's nothing left over in the equity column.

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

Malibu Equity and Investments. Roger Van Zant.

And this is the important thing.