Let's say I make another loan for 300.

We would pump more and more money into Fannie and Freddie Mac.

Who knows?

So we get a 50 recovery.

The mortgage...

1 of 1 million is another 10,000 a year in property taxes.

Maybe a billion of these are a loan from bank B.

Rick Mm hmm.

Hey, Lone Ranger.

Did you get the loan?

OK, so now we're in an interesting situation.

I want more time

I got a mortgage. I got car payments.

Empress of the Lone Islands!

Let me just do one more loan.

And let's say you still owe pretty close to 150 thousand on the loan to the bank your loan might have even been an interest only loan but even after a year or two you're probably not going to pay down the balance of your loan too much it might be like 140 thousand, or 145 thousand

I can pay off my bank loan!

Let's say I make out some loans for different projects.

less value to this guy.

This is a Treasury bond.

Or they might even start to buy things that aren't Treasuries.

It's only worth 100,000 now.

I loan it out to people who have really good projects or investments.

Well I have the original mortgage on my house.

Everyone pooled in.

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

How many payments will it take to pay off this loan?

But now that I have leverage, what happens if the value of my assets get written down by at some point, I determine that Loan B they're probably not going to pay up and Loan A maybe won't pay up.

So let's say, this person goes to a bank.

So right here are a whole bunch of people's mortgages.

What, bullets?

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

Home equity line, 30,000. That's 1 37,000.

Why were they willing to pay rent, when they could have bought a house, where the mortgage would have been interest plus a little principal it would have been no more than 400 a month?

Housing prices have gone down, you had all of these people with these liar loans where you could make up your income and get a million dollar loan with no money down.

So, each of these is an investor.

I suffered from my mortgage loan.

So they just kind of held fast and didn't sell their CDOs.

I think most of us have a sense that payday loans are probably not the best source for a loan, that they probably charge a lot of money to those people who need that cash really badly.

Interest on loans is high at present.

Do you own outright, do you have a mortgage?

The loan carries 5.5 interest.

And just to be clear, so the asset within this entity are the loans.

And what is a bond?

I do not need a loan anymore.