Euro bailout layman terms.

Discussion in 'Politics & The Economy' started by BB3Lions, Dec 7, 2011.

  1. BB3Lions

    BB3Lions
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    This is apparently how the European Bailout Package works:

    EUROPEAN BAILOUT MECHANISM EXPLAINED IN SIMPLIFIED ECONOMIC TERMS:

    It is a slow day in a little Greek Village. The rain is beating down and the streets are deserted.

    Times are tough, everybody is in debt, and everybody lives on credit.

    On this particular day a rich German tourist is driving through the village, stops at the local hotel and lays a 100 Euro 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 some keys and, as soon as the visitor has walked upstairs, the hotelier grabs the 100 Euro note and runs next door to pay his debt to the butcher.

    The butcher takes the 100 Euro note and runs down the street to repay his debt to the pig farmer.

    The pig farmer takes the 100 Euro note and heads off to pay his bill to his supplier of feed and fuel.

    The guy at the Farmers' Co-op takes the 100 Euro note and runs to pay his drinks bill at the tavern.

    The publican slips the money along to the local lady of the night drinking at the bar.

    The local lady of the night then rushes to the hotel and pays off her room bill to the hotel owner with the 100 Euro note.

    The hotel proprietor then places the 100 Euro note back on the counter so the rich traveller will not suspect anything.

    At that moment the traveller comes down the stairs, picks up the 100 Euro 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 village is now out of debt and looking to the future with a lot more optimism.

    And that - I'm told - is how the bailout package works .....
     
  2. nheather

    nheather
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    Possibly, but where it goes wrong is this

    The hotelier grabs the 100 euro note. He thinks about his debts but instead decides to by himself some chocolates, caviar and champagne.

    The 100 euros has gone and the country is in as much debt as ever.

    The German comes back downstairs, says he doesn't like any of the rooms and asks for his 100 euros back.

    Back home the German working people are getting fed up with this prompting a grwoth in neo-nazi groups.


    Cheers,

    Nigel
     
  3. Demon Luci

    Demon Luci
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    Yeah, the story kind of falls down when it comes to the bit about Greeks repaying their debts ;)
     

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