And so with patient capital from Acumen and other organizations,

Whether people will continue to loan them money.

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.

Well we learned what happens.

What are you carrying?

I'm pulling out of his scheme.

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

And today, less than five years in,

And so that cash ended up here.

But in general, hopefully, I've shown to you that we can write the loan amount as the present value of all of the payments.

Well financing got easier. Or essentially they lowered their standards.

We're now moving into East Africa.

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

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.

We can start building local distribution, and actually, it can cost the public sector much less.

So this right over here, that is

My goal is to build one city that entirely selfsustains,

The Board of Trustees' Annual Circle of Gold Gala.

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

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

Well, someone has to give you we could call it a bridge loan because they're giving you a financial bridge from here to where you need to go.

lives, maybe a mortgage, where it's a fixed term, 30 years, at the end of it you've paid all of the interest and you've completely paid off the loan.

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.

Supporting financially

Let's say I could give them 100 thousand loan and then I could forgive the loan

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

The standards for getting a loan went lower and lower.

Right?

But what the federal reserve is saying, in traditional quantitative easing, all the central bank cares about is printing this money and getting it out there into circulation, and they don't really care what they're using this money for.

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.