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Thread: How Financial Bailouts Work

  1. #1
    Senior Member
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    How Financial Bailouts Work

    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 neighbourhood 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 traveller will not suspect anything. At that moment the
    traveller 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

  2. #2
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    Quote Originally Posted by dBrong View Post
    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 neighbourhood 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 traveller will not suspect anything. At that moment the
    traveller 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
    Nice! Very nice.

  3. #3
    Senior Member Mithrandir's Avatar
    Join Date
    Oct 2010
    Posts
    256
    Funny story.

    What would have happened if the Hotel owner did not get the €100 back in time for the tourists?

    I have heard this story before and it still causes me to wonder what happened. It is as if every one wrote off the money they owed to each other and started with a clean slate. This works fine for today, but what will happen tomorrow when people want different services, but have no money to pay for the services.

    the Saint Michael Journal has several articles on the problem's that occur from banks and the banking system, including the problem of a lack of purchasing power..

    Quote Originally Posted by dBrong View Post
    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 neighbourhood 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 traveller will not suspect anything. At that moment the
    traveller 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
    Sincerely,
    Anthony

    'Many are my names in many countries,' he said. 'Mithrandir among the Elves, Tharkûn to the Drarves; Olórin I was in my youth in the West that is forgotten, in the South Incánus, in the North Gandalf; to the East I go not.' Faramir

    What nobler employment, or more valuable to the state, than that of the man who instructs the rising generation? Cicero (106BC-43BC)

    Do not meddle in the affairs of Win32, for it is subtle, and quick to anger. -D. Martinez

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