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

I know I've overdrawn this picture a little bit too much.

It makes sense to pay off your credit card balance every month.

My responsibility is to keep the company solvent.

The yield on the bond is 6 .

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

They're giving it to me for safekeeping.

I can pay off my bank loan!

You're not a homeowner until you don't have debt.

And it got bailed out by the sovereign wealth fund.

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

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Now's the time to keep our focus on the most urgent challenge of our time putting people back to work, paying down our debt, and building an economy where people can have confidence that if they work hard they can get ahead.

It was 1.6 million in bearer bonds.

The Civil War. Even more expensive.

Let's just give it all away, or let's sell it, and give it back to our creditors.

And then what he does is, he takes this share of IBM and then gives it to the brokerage to pay off his liability.

Interesting.

And that makes sense, right?

liquidate it.

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He is a great authority on economics.

Bonds together with some money was stolen.

The money was stolen along with the bonds.

There might be different debt holders who have different

I, uh, I was just going to say I've been cashing A lot of bonds lately, haven't I?

Do it anyway. Who's moving the bearer bonds?

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

What are my liabilities?

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

Bonds, you become part lender to the company.

They said, wow, this is great.

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2 pounds pays Tuco back.

We're gonna find a way to repay you.

So what happens when you go into bankruptcy?

In the last video we talked about the scenario where a company, for whatever reason, it just couldn't pay it's debt holders.

We'll talk later about amortization schedules and how can you pay down the debt.

Morningstar type.

They go to 0.

You could do it with corporate debt.

Oops.

Nevertheless, we will be eventually heavily rewarded from doing this.

This is better than buying treasuries.

Well, stall them. I did.