And if you look at the species level, you saw about fish.

I felt sick.

So its assets.

That assets, A for assets, is equal to

And this was a home equity loan.

Malibu Equity and Investments.

Because if someone tells you debt to equity, you can figure out the assets to equity, but in this case, the debt to equity ratio before I took any losses it was what?

I don't want to draw this box.

And rich, eh?

I'll do that in yellow.

It should start to make a little bit of intuitive sense

Malibu Equity and Investments. Roger Van Zant.

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.

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.

That's all taken care of.

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

And then the other 250,000 essentially went to an expense called depreciation, which is right there.

So in order to fix that credit easing, in Bernanke's sense, would be to go out and buy this type of asset.

Look, this C.D.C. thing, Lori, it's a mistake.

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

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

I guess you could say non cash assets, right?

Are you a man of means?

Fraud Department

Emergency manual.

Or a bear.

And amortizing really just means spreading out the cost of this asset, just like depreciation was spreading out the cost of a physical asset.

These are my assets, and these are my liabilities.

It's our output. We're off.

So I'm also solvent.

Insolvency is when you actually, because of bad investments, you actually end up with less assets then do have liabilities and then there's nothing left over in the equity column.