December 18, 2017, 03:51:23 AM


Author Topic: How The US Economy Went Into The Tank  (Read 269 times)

Offline Big58cal

  • Global Moderator
  • Hardcore Carnivore with Gut Pile Style!
  • *****
  • Posts: 14238
How The US Economy Went Into The Tank
« on: June 23, 2009, 04:09:39 PM »
This is a good analogy..............



An Easily Understandable Explanation of Derivative Markets:


Heidi is the proprietor of a bar in Detroit.  She realizes that virtually all of her customers are unemployed alcoholics and, as such, can no longer afford to patronize her bar.  To solve this problem, she comes up with 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 Heidi's "drink now, pay later" marketing strategy and, as a result, increasing numbers of customers flood into Heidi's bar.  Soon she has the largest sales volume for any bar in Detroit.

By providing her customers' freedom from immediate payment demands, Heidi gets no resistance when, at regular intervals, she substantially increases her prices for wine and beer, the most consumed beverages.  Consequently, Heidi's gross sales volume increases massively.

A young and dynamic vice-president at the local bank recognizes that these customer debts constitute valuable future assets and increases Heidi'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 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 Heidi's bar.  He so informs Heidi.

Heidi then demands payment from her alcoholic patrons, but being unemployed alcoholics they cannot pay back their drinking debts.  Since, Heidi 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 Heidi'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 dollar no-strings attached cash infusion from the Government.  The funds required for this bailout are obtained by new taxes levied on employed, middle-class, non-drinkers.

Now, do you understand?
The only purpose of bread is to hold meat!

John Andrews Is My Hero!

In all seriousness, the Marlin is a great rifle, too. I own a Model 60, one of the best rifles ever made.
Brownings are nice, but in terms of quality AND accuarcy AND ruggedness, it's hard to beat the Marlin.
California sucks that's it.

Offline Ks_Sniper

  • Global Moderator
  • Hardcore Carnivore with Gut Pile Style!
  • *****
  • Posts: 3701
Re: How The US Economy Went Into The Tank
« Reply #1 on: June 23, 2009, 08:45:18 PM »
;D I like that. O0
When I was a child, I lived as a child. When I became a man, I put away my childish things and became a Gutpiler!

Hunting Discussion Forum and Chat on Whitetail Deer Hunting - Anti Peta - Squirrel Hunting - Bow Hunting - Bear Hunting - Coon Hunting - Fishing - Firearms - Outdoor News - Cleaning Game -  17 hmr info and more at www.gutpilestyle.com ! http://www.camouflagenation.com http://www.thehuntingfiles.com  http://wildchildhuntingwear.com  http://www.isquirrelhunt.com http://www.iwhitetailhunt.com http://www.icoonhunt.com

Offline bohicajuan

  • Hardcore Carnivore with Gut Pile Style!
  • ******
  • Posts: 5211
  • On the cover of Flashlight Magazine!
Re: How The US Economy Went Into The Tank
« Reply #2 on: June 23, 2009, 10:22:13 PM »
Sweet! O0
To you gutless cowards and scumbags, who are trying to lie and rewrite history. To those out to commit genocide on the Southern people with your destruction of Confederate monuments and your attacks on Southern heritage and pride. Be happy for now. Because someday when that civil war you wanted starts. I will find you. And I will kill you.

Online John Andrews

  • Global Moderator
  • Hardcore Carnivore with Gut Pile Style!
  • *****
  • Posts: 17688
  • "If it bleeds....We can kill it!" ANDREWS
Re: How The US Economy Went Into The Tank
« Reply #3 on: June 28, 2009, 07:38:38 AM »
 ;D Works pretty good!
Hunting Discussion Forum and Chat on Whitetail Deer Hunting- Bow Hunting- Muzzleloader Hunting- Fishing- Firearms- Outdoor News- Cleaning Game- Deer Pictures- Fish Pictures and more at www.gutpilestyle.com !

 


Facebook Comments