Interest expense.

This guy, he does have interest.

So liabilities. Liabilities.

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

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.

And so is the almost 80 billion we will pay in interest this year on the national debt.

liabilities as well.

It had 5 million of debt.

What are my liabilities?

That assets, A for assets, is equal to

All we did was, we paid the interest on the debt in this example.

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

The Spanish Victory Bond.

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.

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

I think I had called it Loan C.

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.

My assets are 250,000.

So going back to our balance sheet, we had a 10 million asset, we had 5 million of debt.

These are my assets.

It should start to make a little bit of intuitive sense

So right now, the short seller, he has assets and

I now have cash of 1 million. What are my liabilities?

YoOOuse shell corporations to hide your debt.

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

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

The yield on the bond is 6 .

And this is an annual income statement.

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

What were we supposed to do?

So where does this lead?

This is the equity...

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