That assets, A for assets, is equal to

What is your strategy in your household?

It should start to make a little bit of intuitive sense

Each share in this case once again, if you believe that the assets are worth 1 million are going to be 1 million.

So this is just another visual representation that

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

These are my assets.

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

liabilities.

Remember liabilities plus equities are equal to assets.

liabilities plus equity is equal to assets.

They serviced the loans.

My liabilities would be 145,000.

like any corporation, and they have to, the liabilities, plus the equity has to match up to the assets.

That just comes out of the definition of what equity is.

And so liabilities plus equity is equal to assets.

I'll draw it a little bit bigger.

These are my assets, and these are my liabilities.

that assets are equal to liability plus equity.

What's my equity?

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.

If you take an MBA, they'll write it down, and it looks

So once again they're valuing all of the assets at 225,000.

So I'm going to give you a little equation, actually, just to take a little bit of a tangent.

Now let's say it gets even worse.

Because essentially, or you can view it this way, if you subtract liabilities from both sides, assets minus

And we have 23 billion in liabilities.

And that IOU, you could call that a Sal bond.

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

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

This is the retiree health care benefits.

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

So whenever they get this money into circulation they do go out there and they do buy assets usually treasury assets, and then they say even, Indeed, although the bank of Japan's policy, so he's comparing relative to what Japan did when they kind of faced deflationary crisis.

This is day 10 in this alternate universe.

Well, its assets are let's see one plus 21, 25, 26 billion in assets and its liabilities are 23 billion.

So, remember, assets are equal to liabilites plus shareholder's equity, so if all of a sudden the market value of the equity, the market capitalization, for Ben's shoe company is 215,000... (That is the equity part right over here)

Because assets are equal to liabilities plus equity.

Everything is going to be erased.

living this existence.

And this is another important thing to think about.

like an equation, but it's assets is equal to liabilities plus equity.

So, each of these is an investor.

So what are my assets?

So then he's done.

That man borrows money from many lenders.