Posted on 03/04/2009 6:26:53 AM PST by slomark
We don’t know the source of this simple, yet brilliant explanation of the world’s financial crisis. It’s one of those things floating around the internet. Sit back, have a beer, and be enlightened:
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, ...
(Excerpt) Read more at ihatethemedia.com ...
Also include how the head of the ATF forced Heidi to drag the bums out of the street, prop them up at the bar, and serve them as much as they wanted.
Excellent explanation of the Democrats’ housing slump.
...and if she refused, her business would be regulated out of existence and/or sued into bankruptcy for discriminating against a "protected class" of people.
http://www.freerepublic.com/focus/f-chat/2198845/posts
http://www.freerepublic.com/focus/f-news/2195466/posts
(Good stuff, though)
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