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

So that's bankruptcy.

You go get bankruptcy protection.

You're still solvent.

They serviced the loans.

External debt something that I can tell you a long story about because I personally worked on one of the biggest debts on the continent has come down dramatically.

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

Helps bring it down.

So I really do have a positive equity of 11,000.

You can sell shares.

I can no longer fulfill my obligations.

It allows let's say this group of borrowers let's say this pool of borrowers right here actually didn't

We would create incentives for securitization.

It can do it through debt or equity.

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

Over the next few years big decisions will be made in Washington on jobs, the economy, taxes and deficits, energy, education, war and peace.

Payable to the City of San Francisco.

That's where the 1 billion comes from.

We would just know that there is a 20 chance.

What is your strategy in your household?

You have 189,000 as the value of this equity.

Have a surplus? Take two tax cuts, roll back some regulations and call us in the morning.

Now let's say it gets even worse.

It's exciting, but we went over our finances and...

The bank was profitable.

Our economy grew from 2000 to 2007 on the back of consumers massively overborrowing.

The 400 million senior tranche we raised from 1000 senior securities, collateralized debt obligations.

This guy, he does have interest.

Well everyone knows that it's not going to be exactly 10 .

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

That's not always the case.

They would actually owe this extra 1 million.

And just for the sake of it,

So we still have the same amount of debt.

So, each of these is an investor.

What is even a treasury?

And to stop it crashing over the last two to three decades, we've expanded the money supply, expanded credit and debt, so that people can keep buying stuff.

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

They're giving it to me for safekeeping.

That man borrows money from many lenders.

That man is a heavy debtor.

That man has many debts.

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

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.

So it buys, it buys debt.