And you end up with a mortgage backed security.

I have a whole video on mortgage backed securities.

We would create incentives for securitization.

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

So these shares each of these one million shares this is a mortgage backed security.

Leverage.

I think it's a distraction.

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.

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.

Certification

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

Central Europe, unsecured.

Or they might even start to buy things that aren't Treasuries.

That's how loans worked before the mortgage backed security industry really got developed.

I guarantee it.

But we have to start with the basics.

Some of them are going to pay ahead of time.

Was it a correct decision?

Guarantee? What guarantee?

Guaranfuckingteed.

goddamn guarantee that.

A deposit.

Guaranteed...

But anyway, this isn't the crux of it either.

I make are to the bank.

Save certificate

Certificate protection

...and your life will be spared.

I want guarantee.

I guarantee it.

She's gonna love it.

Promised, have you?

And that's why they are called derivative instruments.

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

let's see those zeros cancel out, this zero cancels out, they're getting, over the life of the policy, 1 dollar in premiums for every 100 dollars in insurance.

I will endorse it.

And over a year I make 2 interest.

I'm talking about surviving.

What kind of assurances?

I was the recipient of a large settlement.

And the cash flow will come back to it.

You group them all together.

Mortgage backed security.

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