Maturity

So first, a little bit of definitions.

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

Maybe debt that you have to pay in the next year.

So these treasury securities, whether they're T Bills, treasury bills, treasury notes, or treasury bonds.

You're still solvent.

They serviced the loans.

But hopefully at this point you have a sense of what the yield curve is.

Traditionally, when the fed is more focused on short term interest rates, on overnight borrowing rates between banks, it will use these to buy shorter term debt that increases the amount of currency out there the amount of dollars out there, and so it will

It can buy Treasury securities, so instead of short term Treasury securities, maybe it could be longer term Treasury securities.

We would create incentives for securitization.

Payable to the City of San Francisco.

Helps bring it down.

What is even a treasury?

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

Now let's say it gets even worse.

What is your strategy in your household?

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

So that's bankruptcy.

You go get bankruptcy protection.

This guy, he does have interest.

The office was full of activity all day.

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

Let me draw this yield curve right over here, so this is maturity on the horizontal axis, and this is yield, and I'm gonna draw the yield curve for treasuries.

Even if it were able to offload these loans, it still does not have enough money to satisfy all of the demand deposits or all of the liabilities.

It can do it through debt or equity.

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

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

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.

And maybe the fed is able to, through intervention, first they're able to print money, normally they buy shorter term debt, maybe they start buying longer term treasury debt, and maybe that helps get the yield curve, for longer term treasuries down a little bit.

So we still have the same amount of debt.

So, each of these is an investor.

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

It's exciting, but we went over our finances and...

That man borrows money from many lenders.

That man is a heavy debtor.

That man has many debts.

The date and time until the certificate cache entry should expire.

Actually, I believe the one year itself is a note.

So it buys, it buys debt.

So I will give the government 1,000, the government would give me a treasury bill.

You can sell shares.

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, there's more demand for the treasury, the interest on the treasury will go down

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