And so that cash ended up here.

Bank B has borrowed money from Bank C.

But they're unsecured.

In a world without leverage so if I didn't have all this

So 225,000

So its assets.

So how much wealth is gone from each person's perspective?

That assets, A for assets, is equal to

Mr. Bickersteth is an agreeable gentleman, but not bright.

So this is the assets.

I still have no liabilities

It's the same plot.

They'll often say just like a big bucket of, they'll call them level three assets.

Malibu Equity and Investments.

These are my assets, and these are my liabilities.

Let's say this stock trades down, and it's trading at 50,000.

So they did build some equity through housing appreciation, just the house didn't go from 100,000 to a 1,000,000, it went from 100,000 to 250,000.

The crux of the issue is that there's this stinky asset here.

So I'm going to give you a little equation, actually, just to take a little bit of a tangent.

Manage your personal finances

I don't want to draw this box.

And rich, eh?

I'll do that in yellow.

But it's roughly the right number.

That just comes out of the definition of what equity is.

And so liabilities plus equity is equal to assets.

And then on the equity side, because we have no liability, so in this case assets will be equal to equity.

So whenever they get this money into circulation they do go out there and they do buy assets usually treasury assets, and then they say even, Indeed, although the bank of Japan's policy, so he's comparing relative to what Japan did when they kind of faced deflationary crisis.

But when I talk about the asset, I'm talking about only the operating assets.

let me give you that piece of terminology, it just means net asset value.

It should start to make a little bit of intuitive sense

Malibu Equity and Investments. Roger Van Zant.

It's what the market is willing to give for it.

...I'm printing the money so that I can buy particular assets,

And this goes back to the very first video we saw.

I know that look like a very strange word.

It's not like I didn't have any cost here.

This is worth 5 million.

What are my assets?

nothing but a communist cell.

And the way you get it is with the cumulative distribution function.

(Which was very likely true.)

Down, down, down!

So they really had, let's see, they had an 80,000 loan, a 250,000 asset, so they really had 250,000 minus 80,000, that's 170,000.

And what happens in bankruptcy?