But it is just like a stock.

When you go long a security, you're buying the security.

So a security in the equity world is a stock.

And also, just so you know, as opposed to being short the company, they're long.

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

They'd start with your bonds preferred stock, and then move on to real estate.

And I'm doing this just to show you a point

They will give this money to the market, and in exchange they will usually buy treasury securities, sometimes something slightly different, but usually very safe securities.

Or by selling shares of itself, or essentially allowing other people to become partial owners of it, and that is equity.

I have a whole video on mortgage backed securities.

A security is essentially something that can be bought and sold that has some type of claim on something, or some type of economic value.

I could trade a share of Microsoft.

You know what equity securities are, and just so you know, what is a security?

And then the other 200

And we said there's different kinds of debt.

It can do it through debt or equity.

Annual rate of security

We would lower standards on what it took to get a mortgage.

No.The company he founded, gaia matrix, was under investigation by the s.e.c.for securities violations.

He registers this organization right over here with the US SEC

I'm going to get back a share of IBM, and that's what I owe.

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

Short term, overnight borrowing between banks is already zero.

It seems the government's looking for Harry.

It's a security.

So let's say that it issues, let's sat for simplicity, a hundred shares.

Loan on deeds needed the joint surety.

And it really started because this whole process of being able to take a bunch of people's mortgages together, package them up, and then turn them into securities and then sell them to a bunch of investors this was a quote unquote innovation in the mid '90s, or early '90s.

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

There might be a whole other class of investors here, say this guy.

This guy worked for the S.E.C. who tried to take down Frobisher.

This guy worked for the sec for 20 years. He was a lead investigator who tried to take down frobisher.

So it's going to be 6,000 times 1,000 bond certificates.

learning only too late that something was wrong.

And it makes sense.

And you end up with a mortgage backed security.

They are going to issue Treasury bills, when they essentially just need to borrow money.

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.

That's why it's called open market operations.

I can get a better return than I can get in a bank, or in

So instead of giving 10 , they cut out 1 to insure it.

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

Well, it entitles me to 1 100 of what this corporation gets.

But if the Fed wants to inject more cash, it can now buy different types of securities.

The other thing is that they're buying things maybe further down the yield curve, so they're trying to control the yield curve itself, and they're maybe buying less traditional securities with the goal of maybe making those markets a little bit more operational.