Deposits equal liabilities from a bank's point of view.

liabilities plus equity is equal to assets.

He is a man of considerable means.

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

So this is just another visual representation that

So its assets.

That assets, A for assets, is equal to

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.

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

Malibu Equity and Investments.

Are you a man of means?

These are their assets, just to get all the labelling right.

And then the equity is, essentially we would look at this formula.

Remember liabilities plus equities are equal to assets.

I still have no liabilities

I don't want to draw this box.

And rich, eh?

I'll do that in yellow.

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

That might be true to some degree.

liabilities.

So I'm going to give you a little equation, actually, just to take a little bit of a tangent.

It should start to make a little bit of intuitive sense

Malibu Equity and Investments. Roger Van Zant.

let me give you that piece of terminology, it just means net asset value.

It's an asset that says, someone owes me that money.

liabilities plus equity.

I'd say the stamp he's bought is a considerable asset.

So I have 100 plus 300 plus 250 so it's 100.

And this goes back to the very first video we saw.

So they really had, let's see, they had an 80,000 loan, a 250,000 asset, so they really had 250,000 minus 80,000, that's 170,000.

My liabilities would be 145,000.

So 9 million in loans.

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.

So let me draw that out.

And equity is what you have leftover.

So whenever they get this money into circulation they do go out there and they do buy assets usually treasury assets, and then they say even, Indeed, although the bank of Japan's policy, so he's comparing relative to what Japan did when they kind of faced deflationary crisis.

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

That just comes out of the definition of what equity is.

And so liabilities plus equity is equal to assets.