So we get a 50 recovery.

So they all have 500,000 of debt from the home equity

loans to this bank.

Well I have the original mortgage on my house.

The mortgage...

Freddie Mac.

Rick Mm hmm.

Hey, Lone Ranger.

Did you get the loan?

This is the principal amortization.

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!

I can pay off my bank loan!

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

In a traditional mortgage, you actually, your payment has some part interest and some part principal.

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

Let's say I make another loan for 300.

Who knows?

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?

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

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.

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

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

Interest on loans is high at present.

Let me just do one more loan.

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.

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

Then I also have these CDOs.

less value to this guy.

This is a Treasury bond.

Beemer leased for 1,200 a month. He was three months behind on payments.

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

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

I took a loan against the equity that

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

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

Beyond it is another dimension a dimension of sound... a dimension of sight... a dimension of mind.