They serviced the loans.

My responsibility is to keep the company solvent.

So he works for a consulting firm.

They go to 0.

Now let's say it gets even worse.

There may be more questions later.

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

What is your strategy in your household?

Dishwasher. Hurry it up, miss, we're busy. ( ominous theme playing )

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

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

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.

Interest expense.

There is an urgent need for social change.

You're company?

We would just know that there is a 20 chance.

We work for the Company, Burrows.

You're still solvent.

The bank was profitable.

And they model the company.

She is a clerk of the trading company.

Well, we've all heard about what they are, I think, and we all know they're used quite a bit by people and companies who are trying to avoid paying their proper dues to society, also known as taxes.

Morningstar type.

You could do it with corporate debt.

They would actually owe this extra 1 million.

the lessons

These are the people who first lose money.

And of those 20 that default, we have a 50 recovery.

We would create incentives for securitization.

Payable to the City of San Francisco.

I'm with the gas company.

Helps bring it down.

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

So you know these these are loans to really solvent or very creditworthy companies.

This is the equity...

So that's bankruptcy.

You go get bankruptcy protection.

This guy, he does have interest.

I had to work for my father.

That's not always the case.

Because that's essentially what a credit default swap is, it's insurance on debt.

Jim gulbrand, c.e.o.and founder of the software company gaia matrix,