Now let's go to the liabilities.

So they have some current liabilities, 16 million.

liabilities are overstated.

Let's think about its liabilities.

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

that assets are equal to liability plus equity.

liabilities as well.

So liabilities. Liabilities.

Let's say assets and I'll talk about margin requirements

What I'm squaring off in blue, that's the

So now I have this liability.

And we'll assume right now that your debt is your main liability.

That's insolvency.

These are the assets that our five buddies have together.

But this is debt. 80 million of debt right here.

And then we have the debt, the debt of the company, or the

Maybe the same thing for other types of debt.

I owe the bank 750,000.

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

Most times the liabilities are pretty easy to get a handle on.

This is 120,000 in equity, market value of equity, he has another 105,000 in liabilites.

This was equity.

This is the equity...

So we could say, well, a new figure comes out ... let's see African debt.

20 plus 80 plus 5, so it's 105,000. 105,000 total liabilities.

This is one of its assets.

Well, its assets are let's see one plus 21, 25, 26 billion in assets and its liabilities are 23 billion.

You are liable for the debt.

An even bigger picture, if I now look at my balance sheet, what are my liabilities now?

So once again, if this is a balance sheet, this is the assets, here are your liabilities.

Our equity is equal to 300 gold pieces.

It had 5 million of debt.

What are my liabilities?

That assets, A for assets, is equal to

But Lehman Brothers' assets might be greater than its

And this is an annual income statement.

So where does this lead?

Well I have cash, I have 250,000 worth of cash.

It doesn't matter.

That means that you've increased your Accounts Payable by 100.

Or the other way to view it is, assets minus liabilities is equal to equity, right?

I just care about printing money,

Unofficially, I had other motives.

Minus 1.075 that was the max that I could borrow

Everything on the right hand side is equity, so this is all equity.