We would lower standards on what it took to get a mortgage.

Or they might even start to buy things that aren't Treasuries.

That's how loans worked before the mortgage backed security industry really got developed.

They have good credit etc etc.

And we said there's different kinds of debt.

Mortgage backed security.

Annual rate of security

It seems the government's looking for Harry.

So what we're going to do is we're going to insure this bond.

Those are essentially derivative securities that are derived from mortgage backed securities.

learning only too late that something was wrong.

And it makes sense.

And you end up with a mortgage backed security.

But it is just like a stock.

What happened started to happen the mid 90s, especially in California, and then nationwide in about 2001, 2002 is you had what we call a securitization of the mortgage market.

I have a whole video on mortgage backed securities.

So it's going to be 6,000 times 1,000 bond certificates.

And what is a bond?

The policy number of my insurance is PC two three five seven.

We would create incentives for securitization.

It can do it through debt or equity.

I have 4 billion in residential CDOs, collateralized debt obligations.

T bill if it's a shorter duration,

Treasury bond if it's a longer duration.

But if the Fed wants to inject more cash, it can now buy different types of securities.

So a security in the equity world is a stock.

This is highly rated mortgage backed securities, maybe they have a slightly higher interest rate.

That's why it's called open market operations.

This is an example here

So these shares each of these one million shares this is a mortgage backed security.

I only have two minutes left in this presentation, so in the next presentation I'm going to focus on what this guy can now do with the loan to turn it into a mortgage backed security.

I think it's a distraction.

We're not so sure he took anything except the cash.

The prize will go to the man who is to write the story of Suvorov's campaigns.

We're from the Securities and Exchange Commission.

In contrast, the Federal Reserve's credit easing approach focuses on the mix of loans and securities that it holds and on how this composition of assets affects credit conditions for households and businesses.

I work for a stock company.

And in return, they're going to get 10 on their money.

Oh, no.

I'm an investigating accountant for the S.E.C.

What have you found? Moore was one of five sec commissioners appointed.

Well, it entitles me to 1 100 of what this corporation gets.

But you should watch the videos on mortgage backed securities and collateralized debt obligations, if you want to get a better understanding of exactly how the money flows go.

When you go long a security, you're buying the security.

Here are your boarding pass and your baggage claim.