Consider it a capital investment.

Now, who are they accountable to?

Corporate profits are quite high in fact, if you include bank profits, they're higher than they've ever been.

Japanese automakers are investing heavily in new plant and equipment.

The company's capital expenditure program is set to be 10 billion yen for this year.

So there's no net investment.

The next question that everyone has is, OK fine, Sal.

So how does that work?

Capital investments planned by major Japanese businesses for this year have been revised upward in view of an improving economic outlook.

We have motion sensors, alarm systems, armed guards.

The amount of money you get.

So those are the two side effects of high utilization.

Our advice is that the company invest in new equipment.

We've had a lot of experience.

So let me delete this.

But this investment goes to everyone.

We had gone back to the till.

Actually, I'll throw another thing in here that's a little unrelated to inflation, but high utilization makes prices go up and it also makes people want to add more capacity, right?

But as oil prices rose,

So now the Special Purpose Entity is the owner of the mortgages .

They'll sell the loans to like, let's say, Bear Stearns. So that's an investment bank.

What's it like being an investment banker?

But his return on asset has gone down to 20. and, because he's at that utilization, his return on asset has gone down to 20 .

High utilization will allow you to raise prices and when you raise price you'll get a better return on your asset, and then the other side effect is, when you have that high return on asset, you'll also have more investment going on to build more capacity.

The generalized prices were already increasing.

So I think we all agree that if I were to build a factory that this is let's say I'll do everything in green as investment.

Investment

Malibu Equity and Investments.

Well their intention was to take these home equity loans and put that money to work, invest it in some way.

In 2004, I moved to a local hospital.

Those are the people who are actually managing money and deciding what they want to invest the money in.

He valued what we already had at 5 million dollars.

So essentially, instead of Countrywide being responsible for my loan, my payments now go to these investors.

They're valuing these assets at 1 million.

Investing in professional development is not a cost.

As investors flee

Investing.

So you could view this as the beginning of a pretty significant uptick in prices, right?

And now instead of you getting the payments, I get the payments.

These are our two major bouts of inflation, in the early 70's and in the early 80's, and those were when we had extremely high capacity utilization.

And maybe I should do a whole video on what sell side means, but since I said the word I'll tell you right now.

We're now going to make all of our mortgage payments, the 10 payment, to this bank, this investment bank.

So it essentially spreads out the cost of that 500,000 a year.

..goods and equipment I needed to survive.

Malibu Equity and Investments. Roger Van Zant.