/Mary is the proprietor of a bar in Dublin. She realises that
virtually all of her customers are unemployed alcoholics and, as
such, can no longer afford to patronise her bar. To solve this
problem, she comes up with a new marketing plan that allows her
customers to drink now, but pay later. She keeps track of the
drinks
consumed on a ledger (thereby granting the customers loans).
Word gets around about Mary's "drink now, pay later" marketing
strategy and, as a result, increasing numbers of customers flood
into Mary's bar. Soon she has the largest sales volume for any bar
in Dublin.
By providing her customers freedom from immediate payment demands,
Mary gets no resistance when, at regular intervals, she
substantially increases her prices for wine and beer, the most
consumed beverages. Consequently, Mary's gross sales volume
increases massively. A young and dynamic vice-president at the
local
bank recognises that these customer debts constitute valuable
future
assets and increases Mary's borrowing limit. He sees no reason for
any undue concern, since he has the debts of the unemployed
alcoholics as collateral.
At the bank's corporate headquarters, expert traders figure a way
to
make huge commissions, and transform these customer loans into
DRINKBONDS, ALKIBONDS and PUKEBONDS. These securities are then
bundled and traded on international security markets. Naive
investors don't really understand that the securities being sold to
them as AAA secured bonds are really the debts of unemployed
alcoholics. Nevertheless, the bond prices continuously climb, and
the securities soon become the hottest-selling items for some of
the
nation's leading brokerage houses.
One day, even though the bond prices are still climbing, a risk
manager at the original local bank decides that the time has come
to
demand payment on the debts incurred by the drinkers at Mary's bar.
He so informs Mary.
Mary then demands payment from her alcoholic patrons, but being
unemployed alcoholics they cannot pay back their drinking debts.
Since Mary cannot fulfill her loan obligations she is forced into
bankruptcy. The bar closes and the eleven employees lose their
jobs.
Overnight, DRINKBONDS, ALKIBONDS and PUKEBONDS drop in price by
90%.
The collapsed bond asset value destroys the banks' liquidity and
prevents it from issuing new loans, thus freezing credit and
economic activity in the community.
The suppliers of Mary's bar had granted her generous payment
extensions and had invested their firms' pension funds in the
various BOND securities. They find they are now faced with having
to
write off her bad debt and with losing over 90% of the presumed
value of the bonds. Her wine supplier also claims bankruptcy,
closing the doors on a family business that had endured for three
generations, her beer supplier is taken over by a competitor, who
immediately closes the local plant and lays off 150 workers.
Fortunately though, the bank, the brokerage houses and their
respective executives are saved and bailed out by a multi-billion
euro no-strings attached cash infusion from their cronies in
Government. The funds required for this bailout are obtained by new
taxes levied on employed, middle-class, non-drinkers who have never
been in Mary's bar.
Now, do you understand economics in 2011?/
On Jan 14, 5:59=A0pm, knuttle <[email protected]> wrote:
> On 1/14/2011 5:38 PM, George W Frost wrote:
>
>
>
> > "Robatoy"<[email protected]> =A0wrote in message
> >news:033cb862-689d-4ba9-8320-1d46be907c6c@g26g2000vba.googlegroups.com..=
.
>
> >> =A0 =A0/Mary is the proprietor of a bar in Dublin. She realises that
> >> =A0 =A0virtually all of her customers are unemployed alcoholics and, a=
s
> >> =A0 =A0such, can no longer afford to patronise her bar. To solve this
> >> =A0 =A0problem, she comes up with a new marketing plan that allows her
> >> =A0 =A0customers to drink now, but pay later. She keeps track of the
> >> drinks
> >> =A0 =A0consumed on a ledger (thereby granting the customers loans).
>
> >> =A0 =A0Word gets around about Mary's "drink now, pay later" marketing
> >> =A0 =A0strategy and, as a result, increasing numbers of customers floo=
d
> >> =A0 =A0into Mary's bar. Soon she has the largest sales volume for any =
bar
> >> =A0 =A0in Dublin.
>
> >> =A0 =A0By providing her customers freedom from immediate payment deman=
ds,
> >> =A0 =A0Mary gets no resistance when, at regular intervals, she
> >> =A0 =A0substantially increases her prices for wine and beer, the most
> >> =A0 =A0consumed beverages. Consequently, Mary's gross sales volume
> >> =A0 =A0increases massively. A young and dynamic vice-president at the
> >> local
> >> =A0 =A0bank recognises that these customer debts constitute valuable
> >> future
> >> =A0 =A0assets and increases Mary's borrowing limit. He sees no reason =
for
> >> =A0 =A0any undue concern, since he has the debts of the unemployed
> >> =A0 =A0alcoholics as collateral.
>
> >> =A0 =A0At the bank's corporate headquarters, expert traders figure a w=
ay
> >> to
> >> =A0 =A0make huge commissions, and transform these customer loans into
> >> =A0 =A0DRINKBONDS, ALKIBONDS and PUKEBONDS. These securities are then
> >> =A0 =A0bundled and traded on international security markets. Naive
> >> =A0 =A0investors don't really understand that the securities being sol=
d to
> >> =A0 =A0them as AAA secured bonds are really the debts of unemployed
> >> =A0 =A0alcoholics. Nevertheless, the bond prices continuously climb, a=
nd
> >> =A0 =A0the securities soon become the hottest-selling items for some o=
f
> >> the
> >> =A0 =A0nation's leading brokerage houses.
>
> >> =A0 =A0One day, even though the bond prices are still climbing, a risk
> >> =A0 =A0manager at the original local bank decides that the time has co=
me
> >> to
> >> =A0 =A0demand payment on the debts incurred by the drinkers at Mary's =
bar.
> >> =A0 =A0He so informs Mary.
>
> >> =A0 =A0Mary then demands payment from her alcoholic patrons, but being
> >> =A0 =A0unemployed alcoholics they cannot pay back their drinking debts=
.
> >> =A0 =A0Since Mary cannot fulfill her loan obligations she is forced in=
to
> >> =A0 =A0bankruptcy. The bar closes and the eleven employees lose their
> >> jobs.
>
> >> =A0 =A0Overnight, DRINKBONDS, ALKIBONDS and PUKEBONDS drop in price by
> >> 90%.
> >> =A0 =A0The collapsed bond asset value destroys the banks' liquidity an=
d
> >> =A0 =A0prevents it from issuing new loans, thus freezing credit and
> >> =A0 =A0economic activity in the community.
> >> =A0 =A0The suppliers of Mary's bar had granted her generous payment
> >> =A0 =A0extensions and had invested their firms' pension funds in the
> >> =A0 =A0various BOND securities. They find they are now faced with havi=
ng
> >> to
> >> =A0 =A0write off her bad debt and with losing over 90% of the presumed
> >> =A0 =A0value of the bonds. Her wine supplier also claims bankruptcy,
> >> =A0 =A0closing the doors on a family business that had endured for thr=
ee
> >> =A0 =A0generations, her beer supplier is taken over by a competitor, w=
ho
> >> =A0 =A0immediately closes the local plant and lays off 150 workers.
>
> >> =A0 =A0Fortunately though, the bank, the brokerage houses and their
> >> =A0 =A0respective executives are saved and bailed out by a multi-billi=
on
> >> =A0 =A0euro no-strings attached cash infusion from their cronies in
> >> =A0 =A0Government. The funds required for this bailout are obtained by=
new
> >> =A0 =A0taxes levied on employed, middle-class, non-drinkers who have n=
ever
> >> =A0 =A0been in Mary's bar.
>
> >> =A0 =A0Now, do you understand economics in 2011?/
>
> > And the only ones who have really benefited from this total fiasco,
> > are the drinkers
>
> Unlike real life was no way that Mary the Bar owner could recover the
> drinks the customers consumed.
Holy cow! He gets it!
On Jan 14, 9:51=A0am, Robatoy <[email protected]> wrote:
> =A0 =A0/Mary is the proprietor of a bar in Dublin. She realises that
> =A0 =A0virtually all of her customers are unemployed alcoholics and, as
> =A0 =A0such, can no longer afford to patronise her bar. To solve this
> =A0 =A0problem, she comes up with a new marketing plan that allows her
> =A0 =A0customers to drink now, but pay later. She keeps track of the
> drinks
> =A0 =A0consumed on a ledger (thereby granting the customers loans).
>
> =A0 =A0Word gets around about Mary's "drink now, pay later" marketing
> =A0 =A0strategy and, as a result, increasing numbers of customers flood
> =A0 =A0into Mary's bar. Soon she has the largest sales volume for any bar
> =A0 =A0in Dublin.
>
> =A0 =A0By providing her customers freedom from immediate payment demands,
> =A0 =A0Mary gets no resistance when, at regular intervals, she
> =A0 =A0substantially increases her prices for wine and beer, the most
> =A0 =A0consumed beverages. Consequently, Mary's gross sales volume
> =A0 =A0increases massively. A young and dynamic vice-president at the
> local
> =A0 =A0bank recognises that these customer debts constitute valuable
> future
> =A0 =A0assets and increases Mary's borrowing limit. He sees no reason for
> =A0 =A0any undue concern, since he has the debts of the unemployed
> =A0 =A0alcoholics as collateral.
>
> =A0 =A0At the bank's corporate headquarters, expert traders figure a way
> to
> =A0 =A0make huge commissions, and transform these customer loans into
> =A0 =A0DRINKBONDS, ALKIBONDS and PUKEBONDS. These securities are then
> =A0 =A0bundled and traded on international security markets. Naive
> =A0 =A0investors don't really understand that the securities being sold t=
o
> =A0 =A0them as AAA secured bonds are really the debts of unemployed
> =A0 =A0alcoholics. Nevertheless, the bond prices continuously climb, and
> =A0 =A0the securities soon become the hottest-selling items for some of
> the
> =A0 =A0nation's leading brokerage houses.
>
> =A0 =A0One day, even though the bond prices are still climbing, a risk
> =A0 =A0manager at the original local bank decides that the time has come
> to
> =A0 =A0demand payment on the debts incurred by the drinkers at Mary's bar=
.
> =A0 =A0He so informs Mary.
>
> =A0 =A0Mary then demands payment from her alcoholic patrons, but being
> =A0 =A0unemployed alcoholics they cannot pay back their drinking debts.
> =A0 =A0Since Mary cannot fulfill her loan obligations she is forced into
> =A0 =A0bankruptcy. The bar closes and the eleven employees lose their
> jobs.
>
> =A0 =A0Overnight, DRINKBONDS, ALKIBONDS and PUKEBONDS drop in price by
> 90%.
> =A0 =A0The collapsed bond asset value destroys the banks' liquidity and
> =A0 =A0prevents it from issuing new loans, thus freezing credit and
> =A0 =A0economic activity in the community.
> =A0 =A0The suppliers of Mary's bar had granted her generous payment
> =A0 =A0extensions and had invested their firms' pension funds in the
> =A0 =A0various BOND securities. They find they are now faced with having
> to
> =A0 =A0write off her bad debt and with losing over 90% of the presumed
> =A0 =A0value of the bonds. Her wine supplier also claims bankruptcy,
> =A0 =A0closing the doors on a family business that had endured for three
> =A0 =A0generations, her beer supplier is taken over by a competitor, who
> =A0 =A0immediately closes the local plant and lays off 150 workers.
>
> =A0 =A0Fortunately though, the bank, the brokerage houses and their
> =A0 =A0respective executives are saved and bailed out by a multi-billion
> =A0 =A0euro no-strings attached cash infusion from their cronies in
> =A0 =A0Government. The funds required for this bailout are obtained by ne=
w
> =A0 =A0taxes levied on employed, middle-class, non-drinkers who have neve=
r
> =A0 =A0been in Mary's bar.
>
> =A0 =A0Now, do you understand economics in 2011?/
I think that is the best explanation of modern economics I have read
since Eco 101 many years ago.
DL
"marc rosen" <[email protected]> wrote in message
news:d9a5f359-75db-4f28-a172-f583798a3714@i41g2000vbn.googlegroups.com...
> Darn, | was expecting another joke.
> Marc
Glad that you showed up
now people can laugh at you
"Doug White" <[email protected]> wrote in message
news:[email protected]...
> Larry Jaques <[email protected]> wrote in
> news:[email protected]:
>
>> On Sat, 15 Jan 2011 09:38:48 +1100, "George W Frost"
>> <[email protected]> wrote:
>>
>>>
>>>"Robatoy" <[email protected]> wrote in message
>>>news:033cb862-689d-4ba9-8320-
> [email protected]...
>>>>
>>>> /Mary is the proprietor of a bar in Dublin. She realises that
>> --snip--
>>
>>>And the only ones who have really benefited from this total fiasco,
>>>are the drinkers
>>
>> Right you are, George. They were allowed to pursue their liver
>> disease without limit! Now you can pay higher insurance and medical
>> rates from their defaulting at the hospital, too. Isn't this fun?
>
> Actually, they are screwed too, becasue their favorite pub (and the only
> one where they could get beer on credit) just shut down.
>
> Nobody wins but the banks who got bailed out.
>
> Doug White
What I meant was that the drinkers had been drinking all this time for free
Larry Jaques <[email protected]> wrote in
news:[email protected]:
> On Sat, 15 Jan 2011 09:38:48 +1100, "George W Frost"
> <[email protected]> wrote:
>
>>
>>"Robatoy" <[email protected]> wrote in message
>>news:033cb862-689d-4ba9-8320-
[email protected]...
>>>
>>> /Mary is the proprietor of a bar in Dublin. She realises that
> --snip--
>
>>And the only ones who have really benefited from this total fiasco,
>>are the drinkers
>
> Right you are, George. They were allowed to pursue their liver
> disease without limit! Now you can pay higher insurance and medical
> rates from their defaulting at the hospital, too. Isn't this fun?
Actually, they are screwed too, becasue their favorite pub (and the only
one where they could get beer on credit) just shut down.
Nobody wins but the banks who got bailed out.
Doug White
"Robatoy" <[email protected]> wrote in message
news:033cb862-689d-4ba9-8320-1d46be907c6c@g26g2000vba.googlegroups.com...
>
> /Mary is the proprietor of a bar in Dublin. She realises that
> virtually all of her customers are unemployed alcoholics and, as
> such, can no longer afford to patronise her bar. To solve this
> problem, she comes up with a new marketing plan that allows her
> customers to drink now, but pay later. She keeps track of the
> drinks
> consumed on a ledger (thereby granting the customers loans).
>
> Word gets around about Mary's "drink now, pay later" marketing
> strategy and, as a result, increasing numbers of customers flood
> into Mary's bar. Soon she has the largest sales volume for any bar
> in Dublin.
>
> By providing her customers freedom from immediate payment demands,
> Mary gets no resistance when, at regular intervals, she
> substantially increases her prices for wine and beer, the most
> consumed beverages. Consequently, Mary's gross sales volume
> increases massively. A young and dynamic vice-president at the
> local
> bank recognises that these customer debts constitute valuable
> future
> assets and increases Mary's borrowing limit. He sees no reason for
> any undue concern, since he has the debts of the unemployed
> alcoholics as collateral.
>
> At the bank's corporate headquarters, expert traders figure a way
> to
> make huge commissions, and transform these customer loans into
> DRINKBONDS, ALKIBONDS and PUKEBONDS. These securities are then
> bundled and traded on international security markets. Naive
> investors don't really understand that the securities being sold to
> them as AAA secured bonds are really the debts of unemployed
> alcoholics. Nevertheless, the bond prices continuously climb, and
> the securities soon become the hottest-selling items for some of
> the
> nation's leading brokerage houses.
>
> One day, even though the bond prices are still climbing, a risk
> manager at the original local bank decides that the time has come
> to
> demand payment on the debts incurred by the drinkers at Mary's bar.
> He so informs Mary.
>
> Mary then demands payment from her alcoholic patrons, but being
> unemployed alcoholics they cannot pay back their drinking debts.
> Since Mary cannot fulfill her loan obligations she is forced into
> bankruptcy. The bar closes and the eleven employees lose their
> jobs.
>
> Overnight, DRINKBONDS, ALKIBONDS and PUKEBONDS drop in price by
> 90%.
> The collapsed bond asset value destroys the banks' liquidity and
> prevents it from issuing new loans, thus freezing credit and
> economic activity in the community.
> The suppliers of Mary's bar had granted her generous payment
> extensions and had invested their firms' pension funds in the
> various BOND securities. They find they are now faced with having
> to
> write off her bad debt and with losing over 90% of the presumed
> value of the bonds. Her wine supplier also claims bankruptcy,
> closing the doors on a family business that had endured for three
> generations, her beer supplier is taken over by a competitor, who
> immediately closes the local plant and lays off 150 workers.
>
> Fortunately though, the bank, the brokerage houses and their
> respective executives are saved and bailed out by a multi-billion
> euro no-strings attached cash infusion from their cronies in
> Government. The funds required for this bailout are obtained by new
> taxes levied on employed, middle-class, non-drinkers who have never
> been in Mary's bar.
>
> Now, do you understand economics in 2011?/
And the only ones who have really benefited from this total fiasco,
are the drinkers
Robatoy wrote:
>
> /Mary is the proprietor of a bar in Dublin. She realises that
> virtually all of her customers are unemployed alcoholics and, as
> such, can no longer afford to patronise her bar. To solve this
> problem, she comes up with a new marketing plan that allows her
> customers to drink now, but pay later. She keeps track of the
> drinks
> consumed on a ledger (thereby granting the customers loans).
>
> Word gets around about Mary's "drink now, pay later" marketing
> strategy and, as a result, increasing numbers of customers flood
> into Mary's bar. Soon she has the largest sales volume for any bar
> in Dublin.
>
> By providing her customers freedom from immediate payment demands,
> Mary gets no resistance when, at regular intervals, she
> substantially increases her prices for wine and beer, the most
> consumed beverages. Consequently, Mary's gross sales volume
> increases massively. A young and dynamic vice-president at the
> local
> bank recognises that these customer debts constitute valuable
> future
> assets and increases Mary's borrowing limit. He sees no reason for
> any undue concern, since he has the debts of the unemployed
> alcoholics as collateral.
>
> At the bank's corporate headquarters, expert traders figure a way
> to
> make huge commissions, and transform these customer loans into
> DRINKBONDS, ALKIBONDS and PUKEBONDS. These securities are then
> bundled and traded on international security markets. Naive
> investors don't really understand that the securities being sold to
> them as AAA secured bonds are really the debts of unemployed
> alcoholics. Nevertheless, the bond prices continuously climb, and
> the securities soon become the hottest-selling items for some of
> the
> nation's leading brokerage houses.
>
> One day, even though the bond prices are still climbing, a risk
> manager at the original local bank decides that the time has come
> to
> demand payment on the debts incurred by the drinkers at Mary's bar.
> He so informs Mary.
>
> Mary then demands payment from her alcoholic patrons, but being
> unemployed alcoholics they cannot pay back their drinking debts.
> Since Mary cannot fulfill her loan obligations she is forced into
> bankruptcy. The bar closes and the eleven employees lose their
> jobs.
>
> Overnight, DRINKBONDS, ALKIBONDS and PUKEBONDS drop in price by
> 90%.
> The collapsed bond asset value destroys the banks' liquidity and
> prevents it from issuing new loans, thus freezing credit and
> economic activity in the community.
> The suppliers of Mary's bar had granted her generous payment
> extensions and had invested their firms' pension funds in the
> various BOND securities. They find they are now faced with having
> to
> write off her bad debt and with losing over 90% of the presumed
> value of the bonds. Her wine supplier also claims bankruptcy,
> closing the doors on a family business that had endured for three
> generations, her beer supplier is taken over by a competitor, who
> immediately closes the local plant and lays off 150 workers.
>
> Fortunately though, the bank, the brokerage houses and their
> respective executives are saved and bailed out by a multi-billion
> euro no-strings attached cash infusion from their cronies in
> Government. The funds required for this bailout are obtained by new
> taxes levied on employed, middle-class, non-drinkers who have never
> been in Mary's bar.
>
> Now, do you understand economics in 2011?/
I don't think the principles of economics have changed much. You are
relating a pretty old story. Help me understand what is going to happen
in our economy in 2011 and I'll be impressed. If this is merely a joke,
then just ignore my comment. For me, matters involving our economy are
not, in the face of higher unemployment and more violent crime, much to
laugh at--unless its to laugh instead of cry.
Bill
On 1/14/2011 5:38 PM, George W Frost wrote:
> "Robatoy"<[email protected]> wrote in message
> news:033cb862-689d-4ba9-8320-1d46be907c6c@g26g2000vba.googlegroups.com...
>>
>> /Mary is the proprietor of a bar in Dublin. She realises that
>> virtually all of her customers are unemployed alcoholics and, as
>> such, can no longer afford to patronise her bar. To solve this
>> problem, she comes up with a new marketing plan that allows her
>> customers to drink now, but pay later. She keeps track of the
>> drinks
>> consumed on a ledger (thereby granting the customers loans).
>>
>> Word gets around about Mary's "drink now, pay later" marketing
>> strategy and, as a result, increasing numbers of customers flood
>> into Mary's bar. Soon she has the largest sales volume for any bar
>> in Dublin.
>>
>> By providing her customers freedom from immediate payment demands,
>> Mary gets no resistance when, at regular intervals, she
>> substantially increases her prices for wine and beer, the most
>> consumed beverages. Consequently, Mary's gross sales volume
>> increases massively. A young and dynamic vice-president at the
>> local
>> bank recognises that these customer debts constitute valuable
>> future
>> assets and increases Mary's borrowing limit. He sees no reason for
>> any undue concern, since he has the debts of the unemployed
>> alcoholics as collateral.
>>
>> At the bank's corporate headquarters, expert traders figure a way
>> to
>> make huge commissions, and transform these customer loans into
>> DRINKBONDS, ALKIBONDS and PUKEBONDS. These securities are then
>> bundled and traded on international security markets. Naive
>> investors don't really understand that the securities being sold to
>> them as AAA secured bonds are really the debts of unemployed
>> alcoholics. Nevertheless, the bond prices continuously climb, and
>> the securities soon become the hottest-selling items for some of
>> the
>> nation's leading brokerage houses.
>>
>> One day, even though the bond prices are still climbing, a risk
>> manager at the original local bank decides that the time has come
>> to
>> demand payment on the debts incurred by the drinkers at Mary's bar.
>> He so informs Mary.
>>
>> Mary then demands payment from her alcoholic patrons, but being
>> unemployed alcoholics they cannot pay back their drinking debts.
>> Since Mary cannot fulfill her loan obligations she is forced into
>> bankruptcy. The bar closes and the eleven employees lose their
>> jobs.
>>
>> Overnight, DRINKBONDS, ALKIBONDS and PUKEBONDS drop in price by
>> 90%.
>> The collapsed bond asset value destroys the banks' liquidity and
>> prevents it from issuing new loans, thus freezing credit and
>> economic activity in the community.
>> The suppliers of Mary's bar had granted her generous payment
>> extensions and had invested their firms' pension funds in the
>> various BOND securities. They find they are now faced with having
>> to
>> write off her bad debt and with losing over 90% of the presumed
>> value of the bonds. Her wine supplier also claims bankruptcy,
>> closing the doors on a family business that had endured for three
>> generations, her beer supplier is taken over by a competitor, who
>> immediately closes the local plant and lays off 150 workers.
>>
>> Fortunately though, the bank, the brokerage houses and their
>> respective executives are saved and bailed out by a multi-billion
>> euro no-strings attached cash infusion from their cronies in
>> Government. The funds required for this bailout are obtained by new
>> taxes levied on employed, middle-class, non-drinkers who have never
>> been in Mary's bar.
>>
>> Now, do you understand economics in 2011?/
>
>
> And the only ones who have really benefited from this total fiasco,
> are the drinkers
>
>
Unlike real life was no way that Mary the Bar owner could recover the
drinks the customers consumed.
On Sat, 15 Jan 2011 09:38:48 +1100, "George W Frost"
<[email protected]> wrote:
>
>"Robatoy" <[email protected]> wrote in message
>news:033cb862-689d-4ba9-8320-1d46be907c6c@g26g2000vba.googlegroups.com...
>>
>> /Mary is the proprietor of a bar in Dublin. She realises that
--snip--
>And the only ones who have really benefited from this total fiasco,
>are the drinkers
Right you are, George. They were allowed to pursue their liver
disease without limit! Now you can pay higher insurance and medical
rates from their defaulting at the hospital, too. Isn't this fun?
--
A paranoid is someone who knows a little of what's going on.
-- William S. Burroughs
On Fri, 14 Jan 2011 07:51:28 -0800 (PST), Robatoy
<[email protected]> wrote:
>
> /Mary is the proprietor of a bar in Dublin. She realises that
> virtually all of her customers are unemployed alcoholics and, as
> such, can no longer afford to patronise her bar. To solve this
> problem, she comes up with a new marketing plan that allows her
> customers to drink now, but pay later. She keeps track of the
>drinks
> consumed on a ledger (thereby granting the customers loans).
>
> Word gets around about Mary's "drink now, pay later" marketing
> strategy and, as a result, increasing numbers of customers flood
> into Mary's bar. Soon she has the largest sales volume for any bar
> in Dublin.
>
> By providing her customers freedom from immediate payment demands,
> Mary gets no resistance when, at regular intervals, she
> substantially increases her prices for wine and beer, the most
> consumed beverages. Consequently, Mary's gross sales volume
> increases massively. A young and dynamic vice-president at the
>local
> bank recognises that these customer debts constitute valuable
>future
> assets and increases Mary's borrowing limit. He sees no reason for
> any undue concern, since he has the debts of the unemployed
> alcoholics as collateral.
>
> At the bank's corporate headquarters, expert traders figure a way
>to
> make huge commissions, and transform these customer loans into
> DRINKBONDS, ALKIBONDS and PUKEBONDS. These securities are then
> bundled and traded on international security markets. Naive
> investors don't really understand that the securities being sold to
> them as AAA secured bonds are really the debts of unemployed
> alcoholics. Nevertheless, the bond prices continuously climb, and
> the securities soon become the hottest-selling items for some of
>the
> nation's leading brokerage houses.
>
> One day, even though the bond prices are still climbing, a risk
> manager at the original local bank decides that the time has come
>to
> demand payment on the debts incurred by the drinkers at Mary's bar.
> He so informs Mary.
>
> Mary then demands payment from her alcoholic patrons, but being
> unemployed alcoholics they cannot pay back their drinking debts.
> Since Mary cannot fulfill her loan obligations she is forced into
> bankruptcy. The bar closes and the eleven employees lose their
>jobs.
>
> Overnight, DRINKBONDS, ALKIBONDS and PUKEBONDS drop in price by
>90%.
> The collapsed bond asset value destroys the banks' liquidity and
> prevents it from issuing new loans, thus freezing credit and
> economic activity in the community.
> The suppliers of Mary's bar had granted her generous payment
> extensions and had invested their firms' pension funds in the
> various BOND securities. They find they are now faced with having
>to
> write off her bad debt and with losing over 90% of the presumed
> value of the bonds. Her wine supplier also claims bankruptcy,
> closing the doors on a family business that had endured for three
> generations, her beer supplier is taken over by a competitor, who
> immediately closes the local plant and lays off 150 workers.
>
> Fortunately though, the bank, the brokerage houses and their
> respective executives are saved and bailed out by a multi-billion
> euro no-strings attached cash infusion from their cronies in
> Government. The funds required for this bailout are obtained by new
> taxes levied on employed, middle-class, non-drinkers who have never
> been in Mary's bar.
>
> Now, do you understand economics in 2011?/
Well done. Scary, isn't it? And that's only one of many scams going
on right now, just south of your banana crops.
--
A paranoid is someone who knows a little of what's going on.
-- William S. Burroughs
On Sat, 15 Jan 2011 15:45:37 +1100, "George W Frost"
<[email protected]> wrote:
>
>"Doug White" <[email protected]> wrote in message
>news:[email protected]...
>> Larry Jaques <[email protected]> wrote in
>> news:[email protected]:
>>
>>> On Sat, 15 Jan 2011 09:38:48 +1100, "George W Frost"
>>> <[email protected]> wrote:
>>>
>>>>
>>>>"Robatoy" <[email protected]> wrote in message
>>>>news:033cb862-689d-4ba9-8320-
>> [email protected]...
>>>>>
>>>>> /Mary is the proprietor of a bar in Dublin. She realises that
>>> --snip--
>>>
>>>>And the only ones who have really benefited from this total fiasco,
>>>>are the drinkers
>>>
>>> Right you are, George. They were allowed to pursue their liver
>>> disease without limit! Now you can pay higher insurance and medical
>>> rates from their defaulting at the hospital, too. Isn't this fun?
>>
>> Actually, they are screwed too, becasue their favorite pub (and the only
>> one where they could get beer on credit) just shut down.
>>
>> Nobody wins but the banks who got bailed out.
>
>What I meant was that the drinkers had been drinking all this time for free
Doug was cheating, using foresight and logic for his answer.
--
Threee days before Tucson, Howard Dean explained that the
tea party movement is "the last gasp of the generation that
has trouble with diversity." Rising to the challenge of
lowering his reputation and the tone of public discourse,
Dean smeared tea partiers as racists: They oppose Obama's
agenda, Obama is African-American, ergo...
Let us hope that Dean is the last gasp of the generation
of liberals whose default position in any argument is to
indict opponents as racists. This McCarthyism of the left
-- devoid of intellectual content, unsupported by data --
is a mental tic, not an idea but a tactic for avoiding
engagement with ideas. It expresses limitless contempt for
the American people, who have reciprocated by reducing
liberalism to its current characteristics of electoral
weakness and bad sociology. --George Will 14 JAN 2011
Article titled "Tragedies often spark plenty of analysis"
"Larry Jaques" <[email protected]> wrote in message
news:[email protected]...
> On Sat, 15 Jan 2011 15:45:37 +1100, "George W Frost"
> <[email protected]> wrote:
>
>>
>>"Doug White" <[email protected]> wrote in message
>>news:[email protected]...
>>> Larry Jaques <[email protected]> wrote in
>>> news:[email protected]:
>>>
>>>> On Sat, 15 Jan 2011 09:38:48 +1100, "George W Frost"
>>>> <[email protected]> wrote:
>>>>
>>>>>
>>>>>"Robatoy" <[email protected]> wrote in message
>>>>>news:033cb862-689d-4ba9-8320-
>>> [email protected]...
>>>>>>
>>>>>> /Mary is the proprietor of a bar in Dublin. She realises that
>>>> --snip--
>>>>
>>>>>And the only ones who have really benefited from this total fiasco,
>>>>>are the drinkers
>>>>
>>>> Right you are, George. They were allowed to pursue their liver
>>>> disease without limit! Now you can pay higher insurance and medical
>>>> rates from their defaulting at the hospital, too. Isn't this fun?
>>>
>>> Actually, they are screwed too, becasue their favorite pub (and the only
>>> one where they could get beer on credit) just shut down.
>>>
>>> Nobody wins but the banks who got bailed out.
>>
>>What I meant was that the drinkers had been drinking all this time for
>>free
>
> Doug was cheating, using foresight and logic for his answer.
>
That's a good one
Who uses logic these days ??