1
00:00:00,050 --> 00:00:05,325
This is Steve and this is Steve's uncle
and Steve is in a bit of a bind.

2
00:00:05,545 --> 00:00:09,809
Not only does he not have any money
but he also owes Michael,

3
00:00:09,809 --> 00:00:11,353
who is not depicted here.

4
00:00:11,353 --> 00:00:16,088
He owes Michael $3. So he actually
has a negative net worth.

5
00:00:16,134 --> 00:00:18,724
Steve has a net worth of -3.

6
00:00:18,724 --> 00:00:23,664
Steve's uncle cares about Steve
and feels bad that he doesn't even have

7
00:00:23,664 --> 00:00:25,894
a 0 net worth;
he has a negative net worth!

8
00:00:25,894 --> 00:00:29,413
And so Steve's uncle wants to at least
take away some of this pain.

9
00:00:29,413 --> 00:00:34,812
He at least wants to get Steve back
to a neutral net worth, a 0 net worth.

10
00:00:34,862 --> 00:00:42,600
So he decides to take away
Steve's negative net worth.

11
00:00:42,600 --> 00:00:45,568
He wants to take away that -3.

12
00:00:45,648 --> 00:00:51,703
What happens if you take away that -3?
Well, that should get you back to 0.

13
00:00:51,703 --> 00:00:54,200
If you take away anything...
if you have something

14
00:00:54,200 --> 00:00:56,707
and you take it away,
it should go back to 0.

15
00:00:56,707 --> 00:01:01,218
Similarly if you owe people things
and that owing people things

16
00:01:01,218 --> 00:01:03,969
is taken away, it also gets back to 0.

17
00:01:03,969 --> 00:01:07,713
And another way to think about it is
how Steve's uncle would actually

18
00:01:07,713 --> 00:01:11,767
take that liability,
take that debt away from Steve.

19
00:01:12,077 --> 00:01:16,493
Well, the easiest way he could do it
if Steve is starting at -3 net worth

20
00:01:16,493 --> 00:01:22,684
is for his uncle to give Steve $3,
so that he(Steve) can get back

21
00:01:22,684 --> 00:01:24,675
to a net worth of 0.

22
00:01:24,675 --> 00:01:27,716
So hopefully, that makes it
a little bit clearer,

23
00:01:27,719 --> 00:01:32,059
that this and this
are intuitively equivalent.