So the total assets were 5 billion in assets.

I'll do that in yellow.

One of the viewers pointed out not incorrectly that one definition of return on asset so this whole video's going to be on return on asset that one definition of return on asset, and if you look it up on some of the finance sites or even some finance textbooks, they'll tell you it's net income over total assets.

The bank is going to be able to fulfill its promise.

And we have these 4 billion of CDOs.

And if this is worth 2.5 billion, then your total assets are what?

Attention all hands.

So its assets.

So I'm also solvent.

But I have an accounts receivable of 400, so my total assets now are 300 of assets, remember, accounts receivables aren't assets, because someone owes me something, someone owes me cash in the future.

That assets, A for assets, is equal to

Because remember, this piece right here only adds up to 140,000!

Malibu Equity and Investments.

Your excellencies,

UN Secretary General,

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

So that one definition takes this and they divide by the total assets.

I don't want to draw this box.

And rich, eh?

What is the new book value of the shares?

It should start to make a little bit of intuitive sense

Malibu Equity and Investments. Roger Van Zant.

And the asset in particular we're going to focus on is this 4 billion in residential CDOs right here.

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.

And if you are an investor, you're probably going to want to do the last of the three.

He is a man of wealth.

He's a wealthy man.

Or across the street from each other.

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.

Gross national product is a nation's total output of goods and services as measured in monetary value.

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

It was both Communist and Totalitarian.

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?