Ah, sorry that's unclear! When I was talking about the house, I was focusing on the agreement between the two parties. In this case, the collateral (the house) is a bit of an afterthought of the financial instrument itself. It only gets involved in the terms of the instrument aren't followed.
When I was talking about the car, I was looking at the net balance sheet of the two-party economy in my example (me and the bank). If I add up all the assets and liabilities, both real and financial, of me and the bank, the only thing left is the car, because my financial liability cancels out with the banks financial asset.
Does that make sense?
... no :(
But that could easily be because I don’t know much of the vocabulary around finance, assets, etc. Probably would be easier for me to understand it if I were more familiar with those words and their definitions.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Damn. That's what I wrote the article to help with. :P
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit