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

So the total assets were 5 billion in assets.

I'll do that in yellow.

Rnd, industry cofinancing, Prizes.

I guess you could say non cash assets, right?

Local finance are bankrolling the industrial promotion program.

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.

And so that cash ended up here.

But I have an accounts receivable of 400, so my total assets now are 300 of assets, remember, accounts receivables aren't assets, because someone owes me something, someone owes me cash in the future.

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

And we have these 4 billion of CDOs.

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

So this is lending some cash.

Interest is nothing but rent.

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

To get some future benefit.

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

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

Two trillion a year.

These are demand accounts.

So for example, cash is an asset.

Whether people will continue to loan them money.

So this is the treasury yield curve.

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.

Notice, when I did this balance sheet

The least important form of capital, in this project, is financial capital money.

Debt's a little different.

So its assets.

Well we learned what happens.

The firm went under due to lack of capital.

What are you carrying?

I'm pulling out of his scheme.

So I'm also solvent.

This is cash above and beyond what's needed in the cash register.

That assets, A for assets, is equal to

Mortgage backed security.

Do Low Interest Rates Ensure High Asset Prices?

Because remember, this piece right here only adds up to 140,000!

And so with patient capital from Acumen and other organizations,

Malibu Equity and Investments.

And that was in place for a reason because you had to prove yourself worthy to get the financing.

So that one definition takes this and they divide by the total assets.

So I have 300, 400, 700, 1,000.

Let's stick with gold.

Deposits equal liabilities from a bank's point of view.