We had to write off the debt.

I'll throw that in, too.

Well, then we're even.

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

You're still solvent.

They serviced the loans.

It can do it through debt or equity.

They would have to mark this down to 200 million.

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

Helps bring it down.

One good one makes up for all the bad ones.

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.

if they hit us again, we'ii be ready for them. but it won't do us much good if we can't get world communications back up.

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

We would create incentives for securitization.

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.

Payable to the City of San Francisco.

But over the course of the last several decades, we were just borrowing other people's output.

We would just know that there is a 20 chance.

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...

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.

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

This guy, he does have interest.

You can sell shares.

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

This was the last 15 years before the crash, and you can see there, consumer debt rose dramatically.

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.

These are the people who first lose money.

I can no longer fulfill my obligations.

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.

His weakness cancels out his virtues.

They would actually owe this extra 1 million.

Consumers are different than citizens.

America's foreign debt shot past 500 billion.

That man borrows money from many lenders.

That man is a heavy debtor.