They halfdrowned him in a swimming pool.

I'll do that in yellow.

So its assets.

liabilities plus equity.

It should start to make a little bit of intuitive sense

Because in the last video I talked a little bit about return on asset, where we just took the operating profit, and we divide that by the assets.

That assets, A for assets, is equal to

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

All of the assets needed to start the firm, the pizzeria.

Or they just have a super flush bank account.

Remember, every time it'd issue a loan, like for right here, it issued a 100 gold piece equivalent loan to D and instead of giving D 100 gold pieces from, say, right here, it just created a checking account for D, which later D paid to A and that's why it's labeled A right here. Let me relabel another thing because the gold is a different color just so you see the gold.

But let's just kind of think about a generic balance sheet for a bank.

Malibu Equity and Investments.

Remember liabilities plus equities are equal to assets.

I don't want to draw this box.

And rich, eh?

And it's worth 100 gold.

These are liabilities.

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

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.

Malibu Equity and Investments. Roger Van Zant.

liabilities plus equity is equal to assets.

I use 100 gold pieces.

It's the same plot.

So I'll write that up here.

I won't use the square tool.

Let me fill this in.

I have in my house.

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

And so you create a derivative asset.

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.

These are my assets, and these are my liabilities.

Let's calculate our total liabilities.

loan to Bank A.

And then whatever assets I get I would have to sell it.

And, but it really it got the electricity. It took a long time.

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.

It couldn't pay it's debt holders.

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.