Now, all of a sudden, all of these people, probably all of whom who took these home equity loans, let's say all of them did it.

Well the first thing that you would do is that you would lower the

What will it cost to post bond?

So they say, that's a good idea.

The loan bears an 8 interest.

Monetary policy is more indirect.

They pay 100,000 each, for the houses.

They all say, gee, I'm paying a 500,000 loan.

It thinks that, you know what, if we just somehow buy this

Money lenders are enjoying a profitable period.

And so it would essentially be I gave them 100 thousand maybe to do some work for me it would be a transfer of money by giving a loan and then keep forgiving over and over it would be completely identical to giving someone a gift, which is taxed, or giving someone some type of income

This home equity loan is secured by the house.

And the bank thinks it got a great deal.

You know, we take out these loans to buy houses.

Khalid is asking for some money to be made as a donation to the mosque.

He was dependent on contribution for a part of capital.

It's a key to a safety deposit box.

I can tell if you pay your bills on time.

I lend money.

Safety deposit box.

In the name of the pizzeria he's going to borrow some money and then maybe invest that in stocks or something.

So this is essentially lending money.

As Chief Loan Officer at Brea Federal Savings and Loan... you gave a man money to start a fertilizer business.

I met him on the train.

lower the interest rate for people buying and selling dollars, or I should say borrowing and lending dollars, not buying and selling.

For everyone else, there's WikiLeaks.

So, I can see that my 50,000 a year has been well spent.

Now, who are they accountable to?

And the whole time, it's been doing that by printing money and buying short term US securities.

So it's just a bunch of people trading the share price.

But anyway, 10 years go by, financing gets really cheap because you have this dynamic of rising home prices people downplay risk people are willing to give loans to more and more people.

And in the meantime, what did all of these people do with the 500,000 that they had?

That and money.

This loan will carry very heavy interest.

A bank says, OK, sure, I'll give you a 500,000 home equity loan, and in exchange, get 8 interest on that loan.

After going through the safety deposit box...

We mean to treat you, but you must lend us money, we spent ours. Look!

less capital intensive that there's less money that's required

I guess you could say non cash assets, right?

Lend your money and lose your friend.

Supporting financially

The money rests in a safe at the bank.

I loan it out to people who have really good projects or investments.

We kept surveillance on the Little lady but nothing.

It's a photo static copy.