Whether people will continue to loan them money.

So the total assets were 5 billion in assets.

Well we learned what happens.

What are you carrying?

I'm pulling out of his scheme.

And so with patient capital from Acumen and other organizations,

And the corollary of more people willing to lend, is you that the actual standards go down.

And today, less than five years in,

I'll do that in yellow.

And so that cash ended up here.

We're now moving into East Africa.

Let's just show an example of how the actual mortgage works.

One of the viewers pointed out not incorrectly that one definition of return on asset so this whole video's going to be on return on asset that one definition of return on asset, and if you look it up on some of the finance sites or even some finance textbooks, they'll tell you it's net income over total assets.

At the time, there was a microlending group in the village that gave her a 65 dollar loan.

97 percent of all the scheduled repayments came back to us on time.

It could be patents, it could be licenses.

Now, if you don't trust someone, you place restrictions on them, right?

So once again, it's just a loan to someone else.

The bank accommodated the company with a loan.

One, two, three enterprises are put together to repay loans.

And that's the best they could do.

But the banks are still pretty confident then, and they're like, no.

Let's see what happens when n is equal to 2.

So what is our payment amount?

Papa went to the bank to ask for another loan.

So that's a very handsome return.

But there was an underlying support.

The bank is going to be able to fulfill its promise.

So the risk managers within the bank think they have a great deal.

And then if we go to, let's say, 2003.

And we have these 4 billion of CDOs.

And it's really time we start thinking more creatively about how they can be fused.

And to do that, let's get a little bit more abstract.

And she wants the infrastructure it is nice with a paved road.

The standards for getting a loan went lower and lower.

Right?

So this is the treasury yield curve.

It is generally true that if the money supply and the money supply is more than just the amount of dollars that are printed.

The money which people can take has lower interest rate, people can repay it without fear.

Joint guaranty for loans is more than an enterprise, right?

You can kind of say they keep on renewing those loans.

So this house is a 1 million house, right?

I'd like to apply for a smallbusiness loan.

And if this is worth 2.5 billion, then your total assets are what?

And so this is our yield.