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

So we still have the same amount of debt.

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

This difference between this AAA corporate debt and the treasury, that is the yield spread.

You're still solvent.

They serviced the loans.

Most times the liabilities are pretty easy to get a handle on.

This is the retiree health care benefits.

So it buys, it buys debt.

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.

Helps bring it down.

This was the last 15 years before the crash, and you can see there, consumer debt rose dramatically.

So that's bankruptcy.

You go get bankruptcy protection.

And so when the Federal Reserve or any Central Bank prints money, and it buys debt, it goes out into debt markets and it buys it, it usually buys the safest kind of debt, but that affects all of the debt markets, it goes out and buys in the debt market, they're essentially shifting the supply curve of money to the right, they shift the supply curve to the right.

We would create incentives for securitization.

It can do it through debt or equity.

I have 4 billion in residential CDOs, collateralized debt obligations.

Payable to the City of San Francisco.

They're giving it to me for safekeeping.

What is your strategy in your household?

You have 189,000 as the value of this equity.

Have a surplus? Take two tax cuts, roll back some regulations and call us in the morning.

Now let's say it gets even worse.

It's exciting, but we went over our finances and...

So over here you had another liability.

It allows let's say this group of borrowers let's say this pool of borrowers right here actually didn't

External debt something that I can tell you a long story about because I personally worked on one of the biggest debts on the continent has come down dramatically.

This guy, he does have interest.

You can sell shares.

Well everyone knows that it's not going to be exactly 10 .

I can no longer fulfill my obligations.

So I really do have a positive equity of 11,000.

So, each of these is an investor.

I'm just for simplicity not going to do all of them.

Financial Functions

Relations

Association

Associations

Relations

Your excellencies,

And then that's led to a decrease in prices.

Even if it were able to offload these loans, it still does not have enough money to satisfy all of the demand deposits or all of the liabilities.

I know that interest rates are fixed in accordance to the borrower's business risk.

That man borrows money from many lenders.