I don't want to draw this box.

Malibu Equity and Investments. Roger Van Zant.

So its assets.

I'll do that in yellow.

And so we took this number as the numerator and we divided by the number of assets.

Obviously , a machine you can't do all of those things to it, but you can at least touch it and possibly smell and taste it.

That assets, A for assets, is equal to

Or across the street from each other.

But let's say its assets are worth 1 million.

So this is just another visual representation that

And this was a home equity loan.

Malibu Equity and Investments.

It doesn't sound like we borrowed money or anything.

And what I wrote here is, it has 4 billion of liabilities.

All of the assets needed to start the firm, the pizzeria.

Remember, every time it'd issue a loan, like for right here, it issued a 100 gold piece equivalent loan to D and instead of giving D 100 gold pieces from, say, right here, it just created a checking account for D, which later D paid to A and that's why it's labeled A right here. Let me relabel another thing because the gold is a different color just so you see the gold.

But let's just kind of think about a generic balance sheet for a bank.

So 225,000

And then the very first definition I gave you was operating profit over assets.

And rich, eh?

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

These are liabilities.

The Raider's a military asset.

It should start to make a little bit of intuitive sense

Phuong, I'm not a rich man but I do have assets.

And what happens in bankruptcy?

So, this is going to be equal to that and by that exact same logic,

Then that corresponds to a

That we see it.

liabilities plus equity is equal to assets.

I use 100 gold pieces.

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

A souvenir, sort of

liabilities plus equity.

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.

let me give you that piece of terminology, it just means net asset value.

So this is the assets.

little bit.

I still have no liabilities

What are our assets now?

So I'll write that up here.

like a balance sheet.

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

And then on the equity side, because we have no liability, so in this case assets will be equal to equity.

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