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

So this is kind of a frozen asset.

You don't even need the loan.

I'm worth 11,000.

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

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.

And this goes back to the very first video we saw.

Liquid means it's very easy to buy and sell those securities in large quantities.

And you end up with a mortgage backed security.

Do pay?

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

Each share in this case once again, if you believe that the assets are worth 1 million are going to be 1 million.

So let's make some very simple assumptions for ourselves.

Illiquidity is a different situation.

Mortgage backed security.

Do Low Interest Rates Ensure High Asset Prices?

Mmhm. It's a real estate investment.

It was both Communist and Totalitarian.

Somebody solvent?

Ancillary would be number 2 referred revenue.

So this is all equity.

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

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

Although women do two thirds of the world's labor, they own less than one percent of the world's assets.

And this guy's an investment bank instead of a commercial bank.

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

It's listed as a current asset on this balance sheet but the invoice was never presented to accounts receivable, so....

What the Fed was doing was, they were saying, OK, we'll take some of these assets that Bank C has.

So its assets.

Because we want to focus on the CDOs, because that's the crux of everything that's going on.

So she went out and looked at what data she could find.

I think it's a distraction.

That assets, A for assets, is equal to

Even though it might be worth 20 million, a year later you might not there are only so many people who can afford a 20 million house.

Detroit is famous for its car industry.

The Arizona Ranchman. We got real estate. We got...

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's not like when you go into bankruptcy the company just disappears.

And then when we go and get the property because the

And now this company would have, if you have 1 billion in cash and 4 billion of CDOs, it would think that it has 5 billion of assets.

Malibu Equity and Investments.

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And the loans are just the right on these 10 payments.

But on average this Special Purpose Entity will then be able to pay a dividend.

In a world without leverage so if I didn't have all this