That's not always the case.

Because the government now owns 90 something percent of the company.

We would create incentives for securitization.

I have 4 billion in residential CDOs, collateralized debt obligations.

They serviced the loans.

This guy, he does have interest.

There is a price.

And because it's a junkier rating, no one is going to want to buy it.

Now let's say it gets even worse.

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

What is your strategy in your household?

My next presentation, I'm going to take it to a further

So that's what we're going to show you in the presentation on collateralized debt obligations.

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

It allows let's say this group of borrowers let's say this pool of borrowers right here actually didn't

You would get 100 million.

So, each of these is an investor.

That man borrows money from many lenders.

That man is a heavy debtor.

That man has many debts.

Sheriff's Department.

I have a whole video on mortgage backed securities.

We would just know that there is a 20 chance.

You're still solvent.

The bank was profitable.

They would actually owe this extra 1 million.

And we have 5 billion in assets, 4 billion of

Of course, if enough people start defaulting, even these people start to get hurt.

So just in kind of our everyday personal finance world, your mortgage is actually secured debt.

These are the people who first lose money.

And of those 20 that default, we have a 50 recovery.

Preserve owner

Payable to the City of San Francisco.

Helps bring it down.

You have 189,000 as the value of this equity.

These young boys are in Nepal.

So that's bankruptcy.

You go get bankruptcy protection.

But you should watch the videos on mortgage backed securities and collateralized debt obligations, if you want to get a better understanding of exactly how the money flows go.

It can do it through debt or equity.

Over the next few years big decisions will be made in Washington on jobs, the economy, taxes and deficits, energy, education, war and peace.

External debt something that I can tell you a long story about because I personally worked on one of the biggest debts on the continent has come down dramatically.

And these are its assets.

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

So we still have the same amount of debt.