So first, a little bit of definitions.

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

Maybe debt that you have to pay in the next year.

So these treasury securities, whether they're T Bills, treasury bills, treasury notes, or treasury bonds.

You're still solvent.

They serviced the loans.

But hopefully at this point you have a sense of what the yield curve is.

Helps bring it down.

Maturity

So that's bankruptcy.

You go get bankruptcy protection.

It can buy Treasury securities, so instead of short term Treasury securities, maybe it could be longer term Treasury securities.

What is even a treasury?

We would create incentives for securitization.

It can do it through debt or equity.

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

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.

And maybe the fed is able to, through intervention, first they're able to print money, normally they buy shorter term debt, maybe they start buying longer term treasury debt, and maybe that helps get the yield curve, for longer term treasuries down a little bit.

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...

Actually, I believe the one year itself is a note.

Even if it were able to offload these loans, it still does not have enough money to satisfy all of the demand deposits or all of the liabilities.

Let me draw this yield curve right over here, so this is maturity on the horizontal axis, and this is yield, and I'm gonna draw the yield curve for treasuries.

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 .

I can no longer fulfill my obligations.

So I really do have a positive equity of 11,000.

So we still have the same amount of debt.

So, each of these is an investor.

That man borrows money from many lenders.

That man is a heavy debtor.

That man has many debts.

The bank was profitable.

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.

And so when the Federal Reserve or any Central Bank prints money, and it buys debt, it goes out into debt markets and it buys it, it usually buys the safest kind of debt, but that affects all of the debt markets, it goes out and buys in the debt market, they're essentially shifting the supply curve of money to the right, they shift the supply curve to the right.

So I will give the government 1,000, the government would give me a treasury bill.

So it buys, it buys debt.