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

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

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

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

liquidate it.

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

There might be different debt holders who have different

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

And that makes sense, right?

I said, who gets the money?

So what happens when you go into bankruptcy?

My responsibility is to keep the company solvent.

They go to 0.

The yield on the bond is 6 .

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.

The Civil War. Even more expensive.

They're giving it to me for safekeeping.

I can pay off my bank loan!

Perhaps you will be so good as to do the same for his creditors in Meryton,

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.

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

And they get paid first.

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

Bonds together with some money was stolen.

The money was stolen along with the bonds.

This is the debt, or the liabilities.

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.

They said, wow, this is great.

The personal debt to income ratio basically went from 65 percent to 135 percent in the span of about 15 years.

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

It was 1.6 million in bearer bonds.

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Well, stall them. I did.

But Goldman's boys are well placed among the architects of power and they not only arranged for a huge bailout. but more importantly, they got the taxpayer to pay to save AlG from bankruptcy by up their collapsed loans and that incidentally saved Goldman Sachs from the same fate.

But the government is going to essentially write them a 2 billion check so they can get their billion dollars back.

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?

And I think you'll get a sense based on where I took the 5 million out of, who gets the money.

And let's say, for whatever reason, either interest rates went up, or they had a bad quarter or a bad year, and they just didn't generate enough cash, let's say they couldn't pay off one of the debt holders.

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.

They serviced the loans.

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.