| Author | Message | ||
     Mountainstorm |
While we are all pondering if the Europeans will soon solve their financial crisis, here is how it works in simple terms, What is a Financial Bail-Out ? It is a slow day in a damp little Irish town. The rain is beating down harshly, and all the streets are deserted. Times are tough, everybody is in debt and everybody lives on credit. ...On this particular day a rich German tourist is driving through the town, stops at the local hotel and lays a 100 note on the desk, telling the hotel owner he wants to inspect the rooms upstairs in order to pick one to spend the night. The owner gives him some room-keys and, as soon as the visitor has walked upstairs, the hotelier grabs the 100 note and runs next door to pay his debt to the butcher. The butcher takes the 100 note and rushes down the street to repay his debt to the pig farmer. The pig farmer takes the 100 note and heads off to pay his bill at the supplier of animal feed and fuel. The guy at the Farmers' Co-op takes the 100 note and runs to pay his drinks bill at the friendly neighborhood pub. The pub owner slips the money along to the local prostitute drinking at the bar - who, in spite of facing hard times, has always gladly offered him her services on credit. The hooker then rushes over to the hotel and pays off her room bill to the hotel owner with the 100 note. The hotel proprietor quietly replaces the 100 note back on the counter, so that the rich traveler will not suspect anything. At that moment the traveler comes down the stairs, states that none of the rooms are satisfactory, picks up the 100 note, pockets it and leaves town. ...No one has produced anything. No one has earned anything. However, the whole town is now out of debt and looking to the future with a lot more optimism. And that, dear ladies and gentlemen, is how a basic financial bailout package works ! | ||
| Boogiman1981 |
Well that's how it should work. However the people weren't given the $ the creditors were. | ||
| Fahren |
www.xtranormal.com/watch/12611732/the-european-bai lout-explained | ||
| Davegess |
LOL | ||
| Cityxslicker |
don't forget that every transaction should have been taxed, and added an appropriate transaction fee, with late penalties, and account administration charges. | ||
| Ft_bstrd |
Mountain, The problem is that government plays a part in the exchange, the government extracts 40%. Payment of debt isn't deductible. After the hotelier receives his 100, the government exacts 40 leaving only 60 to pay debts. Now if the payment of debt were tax deductible..... | ||
| Fahren |
It's not taxation that is the biggest issue, it's the fact that P+I > P. | ||
| Cityxslicker |
actually.... in the real world. The bank/credit card company simply seizes your account, freezes your credit rating, invalidates your card, and leaves the market. http://www.guardian.co.uk/business/2011/aug/16/mbn a-jobs-risk-uk-ireland (this was the warn notice, they have as of this last month, started closing the doors and calling in markers - they are done) | ||
| Mr_grumpy |
I have an MBNA card just like that one in the picture. Thank YOU very much Bank of America. Screen goes all wavy diagonal lines to signify dream sequence) A bright summers day, well dressed people wandering around town with white teeth flashing smiles as they get into their polished cars, even the birds are singing stereo & there's not a fallen leaf or piece of litter to be seen, two friends are sitting on a park bench, one turns to the other & says, "What the F*** happened to customer loyalty?" | ||
| Buellitup |
I rather enjoyed that. The Christians used to do a reset on debt every 50 years(day of jubilee), as did the Romans(forget what they called it). That's how they kept the world turning. http://en.wikipedia.org/wiki/Jubilee_%28Christiani ty%29 | ||
| Cityxslicker |
I suppose if you had an entire generation that never got out of debt and died destitude, you could not really affectively recruit new 'customers'..... unfortunately, I think Gen X is the generation that looses it all. | ||
| Blake |
Buck up Brian. Productive people eventually end up turning things around. No generation is devoid of outstanding producers. | ||
| Geforce |
^ Agreed. I think labeling an entire generation with stereotypical traits is about as silly as not sharing that same failure with the previous generation of parents who raised them. | ||
| Mr_grumpy |
It,s kinda hard for those who grew up in the "easy credit" age having been told incessantly that the way to live is in debt, & even having their entire financial system stacked that way, to now be blamed for the mess. Of course they'll all have lawyers to prove that it's not their fault though. | ||
| Moxnix |
http://directorblue.blogspot.com/2009/09/things-ar e-tough-all-over-luxury-cars.html Time to go bargain shopping in Dubai. | ||
| Strato9r |
Copy that,Blake. Thanks for being the voice of reason..........again. |
