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

What are my liabilities?

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

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

My responsibility is to keep the company solvent.

You're still solvent.

They serviced the loans.

Our economy grew from 2000 to 2007 on the back of consumers massively overborrowing.

They're giving it to me for safekeeping.

Helps bring it down.

And it got bailed out by the sovereign wealth fund.

So that's bankruptcy.

You go get bankruptcy protection.

You can sell shares.

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.

I can no longer fulfill my obligations.

We would create incentives for securitization.

It can do it through debt or equity.

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

Payable to the City of San Francisco.

Our borrowing costs were skyrocketing, and we were facing possible default.

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.

My next presentation, I'm going to take it to a further

What is your strategy in your household?

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

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

Now let's say it gets even worse.

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

Solved

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

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

This guy, he does have interest.

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

So it buys, it buys debt.

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.

But I don't believe that another round of tax breaks for millionaires will bring good jobs to our shores or pay down our deficit.

So I really do have a positive equity of 11,000.

So we still have the same amount of debt.

So, each of these is an investor.

That man borrows money from many lenders.

That man is a heavy debtor.

That man has many debts.

The bank was profitable.

So that's what we're going to show you in the presentation on collateralized debt obligations.

America's foreign debt shot past 500 billion.