Moody's downgraded Italy three notches from AA2 to A2

[minestrone]

SO how does a company with 70 billion of assets have a market cap of 4.5 billion? Is that because the markets are now so skewed that we shouldn't actually take these valuations seriously?

If I give you a Tracey Island toy for ten pounds but you still owe me twenty pounds for a Eagle Eye Action Man you have thirty pound worth of assets but you have a debt of thirty pounds, now you have not paid that off and Steve from the next class down will give me twenty pounds for the two toys. You have to pay ten pounds for Steve to get the toys.

So what I am trying to teach you is valuation of asset and debt.

[Mich the Tester]

If I give you a Tracey Island toy for ten pounds but you still owe me twenty pounds for a Eagle Eye Action Man you have thirty pound worth of assets but you have a debt of 30 pounds, now you have not paid that off and Steve from the next class down will give me twenty pounds for the two toys. You have to pay ten pounds for Steve to get the toys.

So what I am trying to teach you is valuation of asset and debt.

So how much is 2,300 tons of gold worth?

[Arturo Bassick]

If I give you a Tracey Island toy for ten pounds but you still owe me twenty pounds for a Eagle Eye Action Man you have thirty pound worth of assets but you have a debt of thirty pounds, now you have not paid that off and Steve from the next class down will give me twenty pounds for the two toys. You have to pay ten pounds for Steve to get the toys.

So what I am trying to teach you is valuation of asset and debt.

I must be missing something here. If you sold the assets to MTT then how can you be offering them to anybody else?

[Mich the Tester]

I must be missing something here. If you sold the assets to MTT then how can you be offering them to anybody else?

They're also not the kinds of assets that can be used for generating revenues. Factories, machines, trucks and ships are a different matter.

[minestrone]

I must be missing something here. If you sold the assets to MTT then how can you be offering them to anybody else?

This wil be a credit default swap.

[Mich the Tester]

This wil be a credit default swap.

Oh that's alright then; that'll be AAA rated! Gold plated investment sir! Can't possibly go wrong!

[Arturo Bassick]

This wil be a credit default swap.

I am still not there. MTT still owns the assets, all you can sell is the debt.

[minestrone]

They're also not the kinds of assets that can be used for generating revenues. Factories, machines, trucks and ships are a different matter.

What part of the 70s did you come from?

Britain makes its money from financial trading, we are good at it and people give us money to do it, some people would like us to stop it.

Trucks and ships, how I laughed at that I cannot tell you. Trucks and ships.

[Doggy Styles]

I didn't know that Fiat was nationalised and available to sell to meet government debt.

[Mich the Tester]

What part of the 70s did you come from?

Britain makes its money from financial trading, we are good at it and people give us money to do it, some people would like us to stop it.

Trucks and ships, how I laughed at that I cannot tell you. Trucks and ships.

We were not discussing Britain, but Italy.