We would create incentives for securitization.

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

My next presentation, I'm going to take it to a further

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

I have a whole video on mortgage backed securities.

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

So just in kind of our everyday personal finance world, your mortgage is actually secured debt.

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.

Of course, if enough people start defaulting, even these people start to get hurt.

The 400 million senior tranche we raised from 1000 senior securities, collateralized debt obligations.

levels of seniority.

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

Leverage.

You're still solvent.

They serviced the loans.

So this one might be called senior secured debt.

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

You might just want to watch the video on mortgage backed securities and collateralized debt obligations if you need a refresher there.

That's not always the case.

Helps bring it down.

Central Europe, unsecured.

And the bank thinks it got a great deal.

So that's bankruptcy.

You go get bankruptcy protection.

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

And then this is the thing that I really wanted to highlight, that it also had 4 billion of residential collateralized debt obligations.

And you end up with a mortgage backed security.

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.

It can do it through debt or equity.

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.

Was it a correct decision?

Word is that davis' fund has taken some big hits on mortgagebacked securities.

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...

You all have your assignments.

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 .

An unsecured Loan to Coleman s town manager on a check dated one week before the new auditorium contract was even awarded.