I now understand how bail outs benefit everyone:
Times are tough, everybody is in debt, and everybody lives on credit.
"One 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 several 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 runs 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 feed and fuel. The guy at the Farmers' Co-op takes the €100 note and
runs to pay his drinks bill at the pub. The pub owner slips the money along to
the local prostitute drinking at the bar, who has also been facing hard times
and has had to offer him 'services' on credit.
"The hooker then rushes to the hotel and pays off her room bill to the hotel
owner with the €100 note. The hotel proprietor then places the €100 note back on
the counter so the rich traveler will not suspect anything.
"At that moment the traveler comes down the stairs, picks up the €100 note,
states that the rooms are not satisfactory, pockets the money, and leaves town.
"No one produced anything. No one earned anything. However, the whole town is
now out of debt and looking to the future with a lot more optimism.
"And that, Ladies and Gentlemen, is how the bailout package works."
These are thoughts from a mind that has opened, and sometimes opens again.
Jim Freedom's Blog
Monday, December 06, 2010
How the bailout package works
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