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

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

I can't raise that kind of money, and you know it.

So let's say that these are car factories and land and whatever else.

Bankrupt.

That assets, A for assets, is equal to

We're broke.

But you wouldn't want to live like this financially anymore, so there's no reason not to go seek bankruptcy protection.

The yield on the bond is 6 .

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

These are my assets.

It should start to make a little bit of intuitive sense

Well Mr. Duck, that's it, we've just plain run out of jobs. I'm busted.

Mr. Hurst, I'm quite undone!

I was broke.

They're broke.

But Goldman's boys are well placed among the architects of power and they not only arranged for a huge bailout. but more importantly, they got the taxpayer to pay to save AlG from bankruptcy by up their collapsed loans and that incidentally saved Goldman Sachs from the same fate.

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

What is your strategy in your household?

So this is just another visual representation that

Alas! We are ruined.

liquidate it.

It was 1.6 million in bearer bonds.

So everyone decides that it's in their best interests to keep this thing running.

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?

He is bankrupt.

And this is what happened to Lehman Brothers.

And once again, this is a non liquid loan.

Then liquidate. Liquidate?

Well, maybe I just Like peace and quiet.

A patent right is an important property.

So once again they're valuing all of the assets at 225,000.

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

Two, the scientific revolution.

Interesting.

And that makes sense, right?

They said, wow, this is great.

The company went bankrupt.

liabilities plus equity is equal to assets.

And then the equity is, essentially we would look at this formula.

like any corporation, and they have to, the liabilities, plus the equity has to match up to the assets.