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

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

I know I've overdrawn this picture a little bit too much.

Now let's go to the liabilities.

That's insolvency.

The yield on the bond is 6 .

Unofficially, I had other motives.

And that is opposed illiquidity.

Illiquidity is a different situation.

So they have some current liabilities, 16 million.

They go to 0.

It was 1.6 million in bearer bonds.

Bonds, you become part lender to the company.

You could do it with corporate debt.

So let's say that these are car factories and land and whatever else.

So there's a couple of issues here.

You're not a homeowner until you don't have debt.

In the last video I just discussed a personal balance sheet and what illiquidity or what insolvency means.

You can kind of view this as the liabilities of which debt is one of them.

You ripped off his bearer bonds.

Interesting.

And that makes sense, right?

liabilities are overstated.

Perhaps you will be so good as to do the same for his creditors in Meryton,

And let's say that's all of their liabilities.

that assets are equal to liability plus equity.

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

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

What is your strategy in your household?

He was an animal rights activist?

Because I squared, I multiplied the second derivative of y with respect I multiplied it times itself.

Monkeys especially.

I said, who gets the money?

Consider this.

So this is a situation where you are having a liquidity crisis.

So first, a little bit of definitions.

Morningstar type.

liquidate it.

Once that happens, the molecules are going to start moving past each other.

Why would that be? Well, that probably has to do with reciprocity.

So what happens when you go into bankruptcy?

This is better than buying treasuries.

This is the debt, or the liabilities.

You eat it, some of it becomes part of you, the rest eventually goes into the ocean and gets eaten by other animals that die, and after millions of years, they turn into oil, which is where gasoline comes from.

What is even a treasury?