asperity Posted February 24, 2009 Report Share Posted February 24, 2009 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, although the prices are still climbing, a risk manager (subsequently of course fired due his negativity) of the bank decides that slowly the time has come to demand payment of the debts incurred by the drinkers at Heidi's bar.However they cannot pay back the debts. Heidi cannot fulfil her loan obligations and claims bankruptcy.DRINKBOND and ALKBOND drop in price by 95%. PUKEBOND performs better, stabilizing in price after dropping by 80%. The suppliers of Heidi's bar, having granted her generous payment due dates and having invested in the securities are faced with a new situation. Her wine supplier claims bankruptcy, her beer supplier is taken over by a competitor.The bank is saved by the Government following dramatic round-the-clock consultations by leaders from the governing political parties. The funds required for this purpose are obtained by a tax levied on the non-drinkers. With thanks to Gawain Towler "England Expects" Quote Link to comment Share on other sites More sharing options...
observer Posted February 25, 2009 Report Share Posted February 25, 2009 V/G but there were quite a lot of Hiedis. Quote Link to comment Share on other sites More sharing options...
Mary Posted February 26, 2009 Report Share Posted February 26, 2009 Wow - thank you - makes a whole lot more sense then all these TV analysts!! Quote Link to comment Share on other sites More sharing options...
Lt Kije Posted February 26, 2009 Report Share Posted February 26, 2009 Very good Quote Link to comment Share on other sites More sharing options...
wolfie Posted February 26, 2009 Report Share Posted February 26, 2009 I think Heidi should return to the mountains along with her friend Peter. Quote Link to comment Share on other sites More sharing options...
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