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

I know I've overdrawn this picture a little bit too much.

The yield on the bond is 6 .

You're not a homeowner until you don't have debt.

They go to 0.

liquidate it.

It was 1.6 million in bearer bonds.

That assets, A for assets, is equal to

Bonds together with some money was stolen.

The money was stolen along with the bonds.

There might be different debt holders who have different

I, uh, I was just going to say I've been cashing A lot of bonds lately, haven't I?

Do it anyway. Who's moving the bearer bonds?

Interesting.

And that makes sense, right?

They said, wow, this is great.

This is 120,000 in equity, market value of equity, he has another 105,000 in liabilites.

So the only liability is this 5,000.

It should start to make a little bit of intuitive sense

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.

Maybe I can get 20 a year.

Or the other way to view it is, assets minus liabilities is equal to equity, right?

Bonds, you become part lender to the company.

I said, who gets the money?

So what happens when you go into bankruptcy?

You could do it with corporate debt.

Oops.

Nevertheless, we will be eventually heavily rewarded from doing this.

So this is just another visual representation that

Is that the original Victory Bond?

And just to contrast this with bonds, because they are often used in the same phrasing, oh I'm going to go buy some stocks or bonds, or I deal with stocks and bonds.

So for example, if you by a well I'll just say a face value bond of, let's say it's a thousand dollars, and there's a thousand people who do that.

This is better than buying treasuries.

You can kind of view this as the liabilities of which debt is one of them.

Morningstar type.

That's better than putting it in the bank.

You ripped off his bearer bonds.

Maybe he buys his bonds back from us for 60 percent of their value.

But it's really a measure of the same thing.

The bankers stayed with their loan recipients.

Perhaps you will be so good as to do the same for his creditors in Meryton,

I owe these people that money is 700 and my equity is 300.

This is the angel investor, and this is all of us down here, and all of this is equity.

And they get paid first.

Remember, this is the annual interest rate but this is an overnight loan.