The mortgage...

I'm thinking about people's jobs, about their mortgages and pensions and their college funds for their kids.

We all have heard of it.

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

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

So then even more money flowed in.

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

Let's say it's um let's say its 10 billion of commercial mortgages.

And that caused housing prices to go up.

So let's think about how we manage our money.

But there wasn't actual aggregate savings going on.

Well I have the original mortgage on my house.

They just couldn't get up to 15,000 in savings.

why.

You know, we take out these loans to buy houses.

I've essentially become the lender to the home owner, and so the home owner's morgage payment will now come to me the Investment Bank .

So it's not just a promise to get money.

Imran's no dummy, so he does the same thing. He raises his price to 2.

Well everyone knows that it's not going to be exactly 10 .

I suffered from my mortgage loan.

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

It's only worth 100,000 now.

Let's say I'm some type of the Investment Bank.

You'll sell the house and you'll pay it off, even though you can't pay the mortgage anymore.

You're talking about 0.5 per month.

Six percent home loans represent the industry average now.

A mortgage rate of six percent is becoming the current industry average.

You're assuming interest only loans.

So, each of these is an investor.

Deception can cost billions.

So I want to funnel more and more money in here.

This is really the tip of the iceberg.

What I want to do in this video is go over the math behind a mortgage loan.

Maybe you're sixty five years old.

What does it mean, derivative?

But for the simplicity of this argument,

Remaining mortgage on the home, 1 07,000.

You might use an aggregator. An aggregator is somebody who takes a vertical market approach.

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?

And what are they?

And then of course at a party, when I start to explain this, it's like, ah ha.

I am right now thirty four years old and

And when they default, what is kind of the recovery?

Your address in Brooklyn, the payments on your mortgage, how long you've been a member of the NYPD.

Now what are my liabilities?