It makes sense to pay off your credit card balance every month.

They're giving it to me for safekeeping.

So liabilities. Liabilities.

Let's say assets and I'll talk about margin requirements

What are my liabilities?

Now's the time to keep our focus on the most urgent challenge of our time putting people back to work, paying down our debt, and building an economy where people can have confidence that if they work hard they can get ahead.

And then what he does is, he takes this share of IBM and then gives it to the brokerage to pay off his liability.

And then we have the debt, the debt of the company, or the

Let's think about its liabilities.

I owe the bank 750,000.

This is 120,000 in equity, market value of equity, he has another 105,000 in liabilites.

This was equity.

My responsibility is to keep the company solvent.

We'll talk later about amortization schedules and how can you pay down the debt.

liabilities as well.

It had 5 million of debt.

What are my liabilities?

That assets, A for assets, is equal to

Most times the liabilities are pretty easy to get a handle on.

Our economy grew from 2000 to 2007 on the back of consumers massively overborrowing.

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

Because the government now owns 90 something percent of the company.

Minus 1.075 that was the max that I could borrow

Everything on the right hand side is equity, so this is all equity.

I still owe 750,000 to bank.

So my liabilities I owe the bank 750,000.

Total foreign debt of the 3 million sic industrial countries has exceeded 60 trillion dollars, whilst the repayment of half of this amount is sufficient to eradicate poverty in the world.

The personal debt to income ratio basically went from 65 percent to 135 percent in the span of about 15 years.

An even bigger picture, if I now look at my balance sheet, what are my liabilities now?

This is the equity...

So we could say, well, a new figure comes out ... let's see African debt.

Well, its assets are let's see one plus 21, 25, 26 billion in assets and its liabilities are 23 billion.

It has 4 billion of cash, 4 billion of liability, it could pay off its liability with that equity infusion.

I think I had called it Loan C.

And this is an annual income statement.

What I'm squaring off in blue, that's the

So where does this lead?

Well I have cash, I have 250,000 worth of cash.

It doesn't matter.

I had 100 of cash, no accounts receiveables,

So the only liability is this 5,000.

Let me just make everything clear.

These are the assets that our five buddies have together.

So over here you had another liability.

So in this case, our assets are 250,000.