And you might not even be able to find anyone to buy it a year later.

Illiquidity is a different situation.

And then you can imagine now Bank C is worried because now

I'm worth 11,000.

I guess you could say non cash assets, right?

For example, government treasuries is a liquid security or a liquid asset,

Even though it might be worth 20 million, a year later you might not there are only so many people who can afford a 20 million house.

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

Liquid means it's very easy to buy and sell those securities in large quantities.

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

Mmhm. It's a real estate investment.

In this case, an EBlT might be a little bit more informative.

You might be curious about hey, what's all this current asset business?

It's listed as a current asset on this balance sheet but the invoice was never presented to accounts receivable, so....

That's insolvency.

So its assets.

So this is kind of a frozen asset.

So you can say assets of the firm.

And that is opposed illiquidity.

That assets, A for assets, is equal to

Well there are, in a few suburbs.

Malibu Equity and Investments.

I don't want to draw this box.

And rich, eh?

I'll do that in yellow.

levels of debt, will probably lose some money.

It should start to make a little bit of intuitive sense

Malibu Equity and Investments. Roger Van Zant.

That's its asset it has.

She miscarried.

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.

Now unfortunately for you the housing market has deflated dramatically

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

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.

An asset is something that's going to give you some future economic benefit.

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

So this is just another visual representation that

It doesn't sound like we borrowed money or anything.

Remember liabilities plus equities are equal to assets.

My wife had a miscarriage.