ken98k Posted December 14, 2010 Report Share Posted December 14, 2010 It is a slow day in the small Saskatchewan town of Pumphandle and streets are deserted. Times are tough, everybody is in debt, and everybody is living on credit. A tourist visiting the area drives through town, stops at the motel, and lays a $100 bill on the desk saying he wants to inspect the rooms upstairs to pick one for the night. As soon as he walks upstairs, the motel owner grabs the bill and runs next door to pay his debt to the butcher. The butcher takes the $100 and runs down the street to retire his debt to the pig farmer. The pig farmer takes the $100 and heads off to pay his bill to his supplier, the Co-op. The guy at the Co-op takes the $100 and runs to pay his debt to the local prostitute, who has also been facing hard times and has had to offer her "services" on credit. The hooker rushes to the hotel and pays off her room bill with the hotel owner. The hotel proprietor then places the $100 back on the counter so the traveler will not suspect anything. At that moment the traveler comes down the stairs, states that the rooms are not satisfactory, picks up the $100 bill and leaves. No one produced anything. No one earned anything... However, the whole town is now out of debt and now looks to the future with a lot more optimism. And that, ladies and gentlemen, is how a "stimulus package" works. Quote Link to comment Share on other sites More sharing options...
rivitir Posted December 15, 2010 Report Share Posted December 15, 2010 Nice. And very true. Quote Link to comment Share on other sites More sharing options...
8uck5nort Posted December 15, 2010 Report Share Posted December 15, 2010 Yup. Agree 100%. Obamanomics, aka Socialism, does not do squat but enslave the ignorant. The man is only compromising now because he got creamed in the mid terms. Private individuals taking finanacial risks "with ther own money" creates wealth and thus creates jobs. Not the "What's mine is mine and what's yours is mine" government. Quote Link to comment Share on other sites More sharing options...
99-100 Posted December 16, 2010 Report Share Posted December 16, 2010 Compromise? 1.1 trillion is a compromise? How many trillion is that for this 111th and "Most open and ethical pay as you go congress" Quote Link to comment Share on other sites More sharing options...
8uck5nort Posted December 16, 2010 Report Share Posted December 16, 2010 It's a start. (Hopefully) Not saying that the other side of the coin hasn't dipped their grubby mitts in the taxpayers cookie jar. They are just as much to blame for the ballooning budget (what a joke) and deficit (wish it was a joke). The only thing I can say is our grandkids and great-grandkids and beyond will have every right to hate us for indenturing them to the gubmint before they are even born unless we get this under control. Quote Link to comment Share on other sites More sharing options...
Spiris Posted December 17, 2010 Report Share Posted December 17, 2010 A Fox poll indicated that 29% now believe that obama will be re-elected. And many Hollywood liberals have made it known that they will not vote for obama again. H. reid has pulled the 1.1 Trillion dollar omnibus bill from consideration this evening, and wants to work with Republicans to keep the government going. What will tomorrow bring? Spiris Quote Link to comment Share on other sites More sharing options...
Dr.Hess Posted December 17, 2010 Report Share Posted December 17, 2010 If we're doing analogies, here's one I copied from a UK blog, lifted off some other blog, that explains what has happened in Ireland and Europe. Here too, I guess. Mary's Bar. Mary is the proprietor of a bar in Dublin. She realises that virtually all of her customers are unemployed drunks and alcoholics and consequently they can no longer afford to patronise her establishment. 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 in a ledger thereby granting loans to her customers. Word quickly gets around about Mary’s 'drink now and pay later' marketing strategy and as a result increasing numbers of customers flood into her bar. Soon she has the largest sales volume of any bar in Dublin. By providing her customers with drinks without asking for immediate payment, Mary gets no resistance at all when at regular intervals she substantially increases her prices for wine and beer and also for her gastronomic table which is of wide renown. Mary's sales volumes increase massively. A young and dynamic manager 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 drunks and alcoholics as collateral and through Mary's success he believes that he''ll be promoted to vice president of the bank. At the bank's corporate headquarters expert traders work out a way to make huge commissions and transform these customer loans into Drinkbonds, Alkibonds and Sickbonds. 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 drunks and alcoholics. Nevertheless the bond prices continuously climb and these 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 and diners which by now are becoming enormous. He therefore informs Mary that they must pay up or be banned from the establishment. Mary then demands payment from her drunk and alcoholic patrons but being unemployed alcoholics she quickly finds that they cannot meet their drinking debts. As the suddenly very unhappy and disconsolate Mary cannot fulfil her loan obligations, she is sadly forced into bankruptcy and the bar closes with eleven employees losing their jobs. Overnight Drinkbonds, Alcibonds and Sickbonds drop in price by 99%. These collapsed bond asset values destroy the bank's liquidity and prevent it from issuing new loans, thus freezing all credit and economic activity not only in Dublin but throughout Ireland. The suppliers of Mary’s bar had granted her generous payment terms and had invested their firms' pension funds in the various Drinkbond securities. They find that they are now faced with having to write off her bad debts and with losing over 99% of the presumed value of the bonds. Her wine supplier also claims bankruptcy, closing the doors on a family business that had existed for three generations and her beer supplier is taken over by a competitor who immediately closes the local brewery and lays off 150 workers. Fortunately however the bank, the brokerage houses and their respective executives are saved and bailed out by a multi billion euro no strings attached cash injection from their friends and cronies in government. The funds required for this bailout are obtained by high new taxes levied on employed middle class non drinkers who have never been to Mary’s bar and who have never even heard of it. Luckily for the non drinkers, the drunks and alcoholics are not at all pleased about the ending of free drinks at Mary's Bar and they don't like the new taxes and reduced welfare payments either. Consequently everyone is united in their desire to vote for a new government in early 2011 which promises to walk away from all international debt obligations and even reopen Mary's Bar on the same terms and conditions as before. And that my friends is the state of Irish and pan European economics in late 2010. Stand by for further announcements, this is only the beginning.. Quote Link to comment Share on other sites More sharing options...
karlunity Posted December 18, 2010 Report Share Posted December 18, 2010 "a risk manager ' dam that capitalist swine...it is all HIS fault. Every one was happy...why did that **&&(())___+ have to ruin it for every one???? liberal Karl Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.