liabilities.

I use 100 gold pieces.

liabilities plus equity.

In a world without leverage so if I didn't have all this

And this was a home equity loan.

These are my assets, and these are my liabilities.

Communism, capitalism...

So this is assets.

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

And it's worth 100 gold.

Do not forget that fascism, communism, capitalism or other isms are all monetary systems.

Remember liabilities plus equities are equal to assets.

So notice, I now have negative equity, right?

I have in my house.

like a balance sheet.

Shareholders voted to liquidate the company's assets.

My liabilities would be 145,000.

So obviously there's no two companies that are identical in this way, but let's say that they are.

Investment has to be, in the new economy, protecting and nurturing the ecological assets on which our future depends.

And equity is what you have leftover.

What is my before house balance sheet?

less capital intensive that there's less money that's required

So its assets.

I'll do that in yellow.

It should start to make a little bit of intuitive sense

The kids make up the names of the countries some are rich some are poor.

That assets, A for assets, is equal to

Here, I interviewed people who were residents of formerly communist countries, who had all faced the challenge of transitioning to a more democratic and capitalistic society.

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

We had a 10 return on assets.

I won't use the square tool.

So this is my liabilities.

So what's our new balance sheet, after we've unloaded a

What's my equity?

Malibu Equity and Investments.

And what happens in bankruptcy?

So, remember, assets are equal to liabilites plus shareholder's equity, so if all of a sudden the market value of the equity, the market capitalization, for Ben's shoe company is 215,000... (That is the equity part right over here)

So once again, it's just a loan to someone else.

So this is just another visual representation that

It doesn't sound like we borrowed money or anything.

So the asset value is all in equity.

living this existence.

But that's not the case.

And then the equity is, essentially we would look at this formula.

So if I just had a personal balance sheet,