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

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

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

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

What is your strategy in your household?

liquidate it.

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

There might be different debt holders who have different

And that makes sense, right?

Bankrupt.

That assets, A for assets, is equal to

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.

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

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 .

I said, who gets the money?

So what happens when you go into bankruptcy?

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!

They go to 0.

I was broke.

They're broke.

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

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

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

So this is just another visual representation that

And they get paid first.

Alas! We are ruined.

It was 1.6 million in bearer bonds.

Bonds together with some money was stolen.

The money was stolen along with the bonds.

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.

This is the debt, or the liabilities.

And I think you'll get a sense based on where I took the 5 million out of, who gets the money.

A patent right is an important property.

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