So it would be patent amortization.

Maintenance, same thing.

And you end up with a mortgage backed security.

If you have a 10 year loan, you'd put 10 here.

Mortgage backed security.

So these shares each of these one million shares this is a mortgage backed security.

I have a whole video on mortgage backed securities.

I think it's a distraction.

So let's make some very simple assumptions for ourselves.

Amortization is the exact same thing, but it deals with intangible assets.

And this guy's an investment bank instead of a commercial bank.

Andrew,you'll analyze the SEC filings.

There might be a whole other class of investors here, say this guy.

This money is for the year's assessment on the Saint Helen of the Blessed Shroud Orphanage in Calumet City, Illinois.

And then whatever assets I get I would have to sell it.

And also you can deduct, actually, the property tax.

I guess you can't quantify charisma and good looks.

But based on the model that we just constructed, I think the real return we're going to get on this mortgage backed security is 9 .

That's how loans worked before the mortgage backed security industry really got developed.

This is what I assume because I live in California, and in most areas of California, that's the property tax.

And these shares would be called Mortgage Backed Securities. or sometimes MBSes.

Liquid means it's very easy to buy and sell those securities in large quantities.

But you should watch the videos on mortgage backed securities and collateralized debt obligations, if you want to get a better understanding of exactly how the money flows go.

But we have to start with the basics.

Some of them are going to pay ahead of time.

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.

Annual rate of security

...I'm printing the money so that I can buy particular assets,

It seems the government's looking for Harry.

But anyway, this isn't the crux of it either.

I make are to the bank.

Do Low Interest Rates Ensure High Asset Prices?

And that's why they are called derivative instruments.

learning only too late that something was wrong.

And it makes sense.

So its assets.

In contrast, the Federal Reserve's credit easing approach focuses on the mix of loans and securities that it holds and on how this composition of assets affects credit conditions for households and businesses.

lot of hand waving saying, oh, it's a more complicated form of security.

You don't have to be an intellectual property expert to understand the difference between right and wrong.

And the cash flow will come back to it.

You group them all together.

That assets, A for assets, is equal to

Or would it increase the disparity between rich and poor?

But it is just like a stock.

You'd have to sell that loan to someone else.