But then there's a very fundamental difference in what the holder of the bond is doing.

Liquid means it's very easy to buy and sell those securities in large quantities.

Savings bonds.

They're savings bonds.

And the environment might be things like the stock market or the bond market or the commodities market.

But kind of the one that people always talk about, I guess in the same phrase, is bonds.

So a security in the equity world is a stock.

I have a whole video on mortgage backed securities.

Is floating

And if buying debt seems like a weird thing to say, buying debt is the same thing as lending money (lending money).

So it's going to be 6,000 times 1,000 bond certificates.

Currency and bond markets are relatively calm.

You can't get it on Yahoo!

We would create incentives for securitization.

It can do it through debt or equity.

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

And I kind of jumped the gun a little bit.

There's very little chance of them defaulting on their loans.

And I can sell them.

Now let's go to the liabilities.

So this is a situation where you are having a liquidity crisis.

That's insolvency.

But you should watch the videos on mortgage backed securities and collateralized debt obligations, if you want to get a better understanding of exactly how the money flows go.

A common way to finance a budget deficit is to issue bonds.

And that is opposed illiquidity.

Illiquidity is a different situation.

And we came up with this idea of issuing bonds, press freedom bonds.

They'd start with your bonds preferred stock, and then move on to real estate.

And we said there's different kinds of debt.

So they have some current liabilities, 16 million.

Active, inactive.

My next presentation, I'm going to take it to a further

So that's what we're going to show you in the presentation on collateralized debt obligations.

And because it's a junkier rating, no one is going to want to buy it.

And so when the Federal Reserve or any Central Bank prints money, and it buys debt, it goes out into debt markets and it buys it, it usually buys the safest kind of debt, but that affects all of the debt markets, it goes out and buys in the debt market, they're essentially shifting the supply curve of money to the right, they shift the supply curve to the right.

So AAA would be like the highest rated securities, right?

I feel secure when I invest in stocks but not bonds.

bishop?

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.

And that's what these are.

The plans are still fluid.

Economic conditions are in a state of flux.

And you end up with a mortgage backed security.

They're fairly liquid securities.

And what is a bond?