Here are the keys to the house, foreclose on it.

Foreclosures are being fueled by a spike in....

little bit.

For example, government treasuries is a liquid security or a liquid asset,

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

Right?

I'm worth 11,000.

That's its asset it has.

I'll do that in yellow.

So its assets.

liabilities plus equity.

I've gone over all of it with your money managers.

He started this with no money.

like an equation, but it's assets is equal to liabilities plus equity.

And you might not even be able to find anyone to buy it a year later.

That assets, A for assets, is equal to

They'll often say just like a big bucket of, they'll call them level three assets.

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

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

Or they just have a super flush bank account.

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.

Malibu Equity and Investments.

Remember liabilities plus equities are equal to assets.

I'll check with Beasley at War Assets and see if we can't find another plant.

I don't want to draw this box.

And rich, eh?

And it's worth 100 gold.

These are liabilities.

So once again, I'm stuck holding this non liquid asset.

It should start to make a little bit of intuitive sense

Malibu Equity and Investments. Roger Van Zant.

liabilities plus equity is equal to assets.

I use 100 gold pieces.

It's the same plot.

So I'll write that up here.

And then you can imagine now Bank C is worried because now

So the asset would be your house, whatever it's worth, and then your liability, and I'll call that A for asset, and then your liability would be your mortgage.

She miscarried.

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

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.

You might be curious about hey, what's all this current asset business?

Let's calculate our total liabilities.

loan to Bank A.

I mortgaged my house.