I'm worth 11,000.

For example, government treasuries is a liquid security or a liquid asset,

So once again, I'm stuck holding this non liquid asset.

Liquid means it's very easy to buy and sell those securities in large quantities.

And you might not even be able to find anyone to buy it a year later.

Mmhm. It's a real estate investment.

And then you can imagine now Bank C is worried because now

You might be curious about hey, what's all this current asset business?

It's listed as a current asset on this balance sheet but the invoice was never presented to accounts receivable, so....

Illiquidity is a different situation.

So its assets.

So this is kind of a frozen asset.

That assets, A for assets, is equal to

Malibu Equity and Investments.

I don't want to draw this box.

And rich, eh?

I'll do that in yellow.

Even though it might be worth 20 million, a year later you might not there are only so many people who can afford a 20 million house.

levels of debt, will probably lose some money.

It should start to make a little bit of intuitive sense

Malibu Equity and Investments. Roger Van Zant.

That's its asset it has.

She miscarried.

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.

liabilities plus equity.

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

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.

An asset is something that's going to give you some future economic benefit.

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.

Remember liabilities plus equities are equal to assets.

My wife had a miscarriage.

Each share in this case once again, if you believe that the assets are worth 1 million are going to be 1 million.

But let's say its assets are worth 1 million.

Jim has a lot of our nest egg invested in this real estate venture.

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.

So 225,000