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Thread: Financial crisis explained

  1. #1

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    Default Financial crisis explained

    If you put in booze terms then it might be easier to understand...


    Heidi is the proprietor of a bar in Berlin. In order to increase sales, she
    decides to allow her loyal customers -
    most of whom are unemployed alcoholics - to drink now but pay later. She
    keeps track of the drinks consumed on a ledger (thereby granting the
    customers loans). Word gets around and as a result increasing numbers of
    customers flood Into Heidi's bar.

    Taking advantage of her customers' freedom from immediate payment
    constraints, Heidi increases her prices for wine and beer, the
    most-consumed beverages. Her sales volume increases massively.

    A young and dynamic customer service consultant at the local bank
    recognizes these customer debts as valuable future assets and increases
    Heidi's borrowing limit. He sees no reason for undue concern since he has
    the debts of the alcoholics as collateral.

    At the bank's corporate headquarters, expert bankers transform these
    customer assets into DRINKBONDS, ALKBONDS and PUKEBONDS. These securities
    are then traded on markets worldwide. No one really understands what these
    abbreviations mean and how the securities are guaranteed.
    Nevertheless, as their prices continuously climb, the securities become
    top-selling items.

    One day, although the prices are still climbing, a risk manager
    (subsequently of course fired due to his negativity) of the bank decides
    that slowly the time has come to demand payment of the debts incurred by
    the drinkers at Heidi's bar. However they cannot pay back the debts. Heidi
    cannot fulfil her loan obligations and claims bankruptcy. DRINKBOND and
    ALKBOND drop in price by 95 %.
    PUKEBOND performs better, stabilizing in price after dropping by 80 %.

    The suppliers of Heidi's bar, having granted her generous payment due dates
    and having invested in the securities are faced with a new situation. Her
    wine supplier claims bankruptcy, her beer supplier is taken over by a
    competitor. The bank is saved by the Government following dramatic
    round-the-clock consultations by leaders from the governing political
    parties. The funds required for this purpose are obtained by a tax levied
    on the non-drinkers.

  2. #2

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    Nice one mate. That did actually work.

    To be honest though no matter how it's explained it still sticks in my fucking throat.

  3. #3

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    finally someone talks sense lol
    loving tha mate

  4. #4

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    Nice one mate, thats one way of putting it. It might be cos Ive just had a cheeky one but I enjoyed reading that
    cheers

  5. #5

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    lovely reading. nicely wrote.

  6. #6

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    Nice one.. It's important people don't lose sight of what caused it and the fact it was planned, especially when they are keen to distract us with propaganda pointing the finger of blame at other countries, ones that wouldn't buy into the Federal Reserve/IMF/World Bank/WTO etc etc shit and hence must surely be terrorist states eh, how dare they not buy into debt and pay for their own socio-economic enslavement eh

    This video is a short history of the U.S. side of things, still only a part of the bigger picture but where they got the ball rolling for this current crisis...

    [ame="http://www.youtube.com/watch?v=cQqLmtGxIng"]YouTube - The economic crisis explained[/ame]

  7. #7

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    TellnOne "The funds required for this purpose are obtained by a tax levied
    on the non-drinkers"

    Yep that shit Brown is going to put up taxes real soon, causing more economic instability
    Praise the Lord, pass the bullets, we will be Free

  8. #8

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    Legalise Weed and tax that at 50-60% and they'll have plenty of new money and less people locked up costing money.

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