This reimbursement is the basic income.

Two of those other loans, they came due, no one was willing to renew the loans, or give them new loans.

They didn't make loans and then sell the loans.

So, corporate loans, or loans to corporations or banks.

It has 1 billion of loans outstanding.

Corporate loans tend to be for simplicity purposes, interest only loans.

The basic income logically emerges out of VAT as its social component as a reimbursement of tax allowance.

They serviced the loans.

loans, they're not liquid.

Those loans aren't available.

loans to this bank.

But they're loans for different amounts of time.

So Bank A can't get rid of these loans.

Well, you have to pay 3 billion of loans.

You're assuming interest only loans.

They bought all these loans.

I majored in Student Loans.

So 9 million in loans.

Kiva facilitated 500,000 in loans.

loans to his customers, whatever.

And I don't make loans.

But the investment bank, they're not in the business of servicing loans or keeping loans on their balance sheets.

And for the sake of simplicity, I'm going to assume that the loans in this presentation are interest only loans.

There's very little chance of them defaulting on their loans.

We'll just say it has a bunch of loans, right?

Most of the loans we're familiar with in our personal

They had the standards of, we call them, conforming loans.

When this bank sold the loans grouped all of the

We have 3 billion in loans.

And then they'll sell the loans.

Let me start making loans out.

And of course, everybody who had loans to Bank A, maybe

You can kind of say they keep on renewing those loans.

Let's say a bunch of borrowers start defaulting on their loans.

In October of '05, after those first seven loans were paid,

Interest on loans is high at present.

So I'm going to sell these loans.

Because it's a thousand loans out there.

Bank D had loans to Bank A.

These are loans to the federal government.

Maybe people aren't getting mortgage loans still.

I paid off my college loans, everything.

I don't want to say total liabilities because the bank could take out loans that aren't demand loans.

They probably took some fees or sold the loans for slightly more than they issued the loans for.

And those loans from other banks, those are assets of other banks.