We would create incentives for securitization.

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

I know that interest rates are fixed in accordance to the borrower's business risk.

So that's what we're going to show you in the presentation on collateralized debt obligations.

My next presentation, I'm going to take it to a further

I have a whole video on mortgage backed securities.

And because it's a junkier rating, no one is going to want to buy it.

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

I owe the bank 750,000.

So liabilities. Liabilities.

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

What are my liabilities?

They're giving it to me for safekeeping.

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

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.

liabilities as well.

Who is entitled to how much?

But this I just want to show you some data here.

Let's think about its liabilities.

Minus 1.075 that was the max that I could borrow

I still owe 750,000 to bank.

So my liabilities I owe the bank 750,000.

Of course, if enough people start defaulting, even these people start to get hurt.

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

This was equity.

Let me just make everything clear.

So over here you had another liability.

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

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

I hired some help.

And so when the Federal Reserve or any Central Bank prints money, and it buys debt, it goes out into debt markets and it buys it, it usually buys the safest kind of debt, but that affects all of the debt markets, it goes out and buys in the debt market, they're essentially shifting the supply curve of money to the right, they shift the supply curve to the right.

I think I had called it Loan C.

So just in kind of our everyday personal finance world, your mortgage is actually secured debt.

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

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

It had 5 million of debt.

What are my liabilities?

That assets, A for assets, is equal to

But, unfortunately, let's say that I had

So that's bankruptcy.

You go get bankruptcy protection.

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