Do Low Interest Rates Ensure High Asset Prices?

And you end up with a mortgage backed security.

Mortgage backed security.

So let's make some very simple assumptions for ourselves.

Each share in this case once again, if you believe that the assets are worth 1 million are going to be 1 million.

And this guy's an investment bank instead of a commercial bank.

So these shares each of these one million shares this is a mortgage backed security.

I think it's a distraction.

I have a whole video on mortgage backed securities.

So its assets.

That assets, A for assets, is equal to

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.

It's not like when you go into bankruptcy the company just disappears.

You don't even need the loan.

And then when we go and get the property because the

And these shares would be called Mortgage Backed Securities. or sometimes MBSes.

Malibu Equity and Investments.

What's my current state of affairs?

That's how loans worked before the mortgage backed security industry really got developed.

I don't want to draw this box.

And rich, eh?

I'll do that in yellow.

Certification

But we have to start with the basics.

Some of them are going to pay ahead of time.

It should start to make a little bit of intuitive sense

Malibu Equity and Investments. Roger Van Zant.

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.

A 6 yield is guaranteed on the investment.

So once again, I'm stuck holding this non liquid asset.

You have to focus on how to create jobs, make sure they don't fall into disease, and that they get an education.

This is something Jamie Oliver talked about the other day.

Obviously , a machine you can't do all of those things to it, but you can at least touch it and possibly smell and taste it.

liabilities plus equity.

And what I wrote here is, it has 4 billion of liabilities.

Investment has to be, in the new economy, protecting and nurturing the ecological assets on which our future depends.

He is a man of wealth.

He's a wealthy man.

Or across the street from each other.

So the total assets were 5 billion in assets.

You'd have to give up 93 of your net worth.

But anyway, this isn't the crux of it either.

I make are to the bank.

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

So this is just another visual representation that