Local finance are bankrolling the industrial promotion program.

Rnd, industry cofinancing, Prizes.

I guess you could say non cash assets, right?

And so that cash ended up here.

So once again, it's just a loan to someone else.

So this is lending some cash.

Interest is nothing but rent.

At the time, there was a microlending group in the village that gave her a 65 dollar loan.

The money which people can take has lower interest rate, people can repay it without fear.

These are demand accounts.

And then if we go to, let's say, 2003.

Whether people will continue to loan them money.

So this is the treasury yield curve.

So for example, cash is an asset.

To get some future benefit.

The bank is going to be able to fulfill its promise.

But essentially what happened is the investors in the mortgage backed securities provided the money to the special purpose entity to essentially loan to the borrowers.

Notice, when I did this balance sheet

Debt's a little different.

This is cash above and beyond what's needed in the cash register.

What are you carrying?

The least important form of capital, in this project, is financial capital money.

Mortgage backed security.

The firm went under due to lack of capital.

Let's stick with gold.

So its assets.

Well we learned what happens.

So I have 300, 400, 700, 1,000.

I'll do that in yellow.

I'm pulling out of his scheme.

And that was in place for a reason because you had to prove yourself worthy to get the financing.

That assets, A for assets, is equal to

it's like 71 . Right. 7 times 7 is 49 71 .

And the corollary of more people willing to lend, is you that the actual standards go down.

Do Low Interest Rates Ensure High Asset Prices?

Chances.Look, just think of this as a small deductible on a 2 billion insurance policy.

And today, less than five years in,

Because investors saw the potential for return at a time of slowing economic growth, and so they created financial products and financial innovation tailored to the emerging markets.

It's a new tool for investors.

The Sleeping Volcano of Global Finance

JA Yeah, this is a great case, you know.

Cash is an asset because it can be exchanged for things we need in the future.

And so with patient capital from Acumen and other organizations,

Malibu Equity and Investments.

So, Japan had a fiscal real estate crisis back in the late '80s.