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

You're still solvent.

They serviced the loans.

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

It can do it through debt or equity.

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.

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

Helps bring it down.

So that's bankruptcy.

You go get bankruptcy protection.

You can sell shares.

And because it's a junkier rating, no one is going to want to buy it.

I was a live wire of nervous hormones.

I can no longer fulfill my obligations.

I prefer mature cheese.

And if you cut into an older dinosaur, it's very massive.

We would create incentives for securitization.

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

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

Payable to the City of San Francisco.

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.

These are the people who first lose money.

We would just know that there is a 20 chance.

But the face remains strikingly similar.

We're seeing mature madrone trees, which are 70, 80 feet high, flash out dead just like this.

America's foreign debt shot past 500 billion.

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...

The bank was profitable.

So that's what we're going to show you in the presentation on collateralized debt obligations.

And whatever he did down there... it worked.

(Laughter)

_BAR_ More mature KARA is back. _BAR_

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.

Soon ripe, soon rotten.

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

And of those 20 that default, we have a 50 recovery.

This guy, he does have interest.

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

He accomplished his mission.

And just for the sake of it,

Mission accomplished, sir.