What is your strategy in your household?

They serviced the loans.

But you wouldn't want to live like this financially anymore, so there's no reason not to go seek bankruptcy protection.

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

Now let's say it gets even worse.

America's foreign debt shot past 500 billion.

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

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

I can't raise that kind of money, and you know it.

So, each of these is an investor.

You're still solvent.

That man borrows money from many lenders.

That man is a heavy debtor.

That man has many debts.

The bank was profitable.

Bankrupt.

That assets, A for assets, is equal to

We would just know that there is a 20 chance.

But over the course of the last several decades, we were just borrowing other people's output.

We're broke.

Helps bring it down.

I have a whole video on mortgage backed securities.

Poverty is on the rise and the gap is widening between the rich and the poor.

They would actually owe this extra 1 million.

So that's bankruptcy.

You go get bankruptcy protection.

These are the people who first lose money.

These are my assets.

It should start to make a little bit of intuitive sense

Well Mr. Duck, that's it, we've just plain run out of jobs. I'm busted.

Mr. Hurst, I'm quite undone!

So let's say that these are car factories and land and whatever else.

We would create incentives for securitization.

It can do it through debt or equity.

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

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

Payable to the City of San Francisco.

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

I was broke.

They're broke.

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

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

Have a surplus? Take two tax cuts, roll back some regulations and call us in the morning.

It's exciting, but we went over our finances and...

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