Mortgage backed security.

And then when we go and get the property because the

And I'll be willing to give this as collateral.

And so that cash ended up here.

But essentially what happened is the investors in the mortgage backed securities provided the money to the special purpose entity to essentially loan to the borrowers.

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

I've gone over all of it with your money managers.

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

That assets, A for assets, is equal to

So its assets.

Malibu Equity and Investments.

Whether people will continue to loan them money.

So let's make some very simple assumptions for ourselves.

And this guy's an investment bank instead of a commercial bank.

And so with patient capital from Acumen and other organizations,

I'll do that in yellow.

It should start to make a little bit of intuitive sense

Malibu Equity and Investments. Roger Van Zant.

Well we learned what happens.

The money which people can take has lower interest rate, people can repay it without fear.

What are you carrying?

I'm pulling out of his scheme.

I don't want to draw this box.

And rich, eh?

liabilities plus equity.

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.

We don't need to invent solutions because we have them cash flow loans based in income rather than assets,

Do Low Interest Rates Ensure High Asset Prices?

Remember liabilities plus equities are equal to assets.

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

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.

And you end up with a mortgage backed security.

And secured means there's actually some collateral on the asset side that they get if the company can't pay.

liabilities.

And the corollary of more people willing to lend, is you that the actual standards go down.

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.

And if they default on it, I actually get an asset that's probably worth more than the loan amount, and I can auction that off and easily get my 500,000 back.

And today, less than five years in,