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Thursday, December 16, 2010
Here is an inspiring story on financial bailout that I get from a forum and thought of sharing it in this blog while planning my financial goals for the year 2011 since for the past two years, we heard a lot of financial bailout, but do we really know what it is and how it works?
I hope the story can provide more knowledge for us on the financial bailout which is happening over the past two years.
It is a slow day in a damp little Irish town. The rain is beating down harshly, and all 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 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 some room-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 rushes 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 animal feed and fuel.
The guy at the Farmers' Co-op takes the €100 note and runs to pay his drinks bill at the friendly neighbourhood pub. The pub owner slips the money along to the local prostitute drinking at the bar - who, in spite of facing hard times, has always gladly offered him her ‘services’ on credit.
The hooker then rushes over to the hotel and pays off her room bill to the hotel owner with the €100 note.
The hotel proprietor quietly replaces the €100 note back on the counter, so that the rich traveler will not suspect anything.
At that moment the traveler comes down the stairs, states that none of the rooms are satisfactory, picks up the €100 note, pockets it and leaves town.
No one has produced anything. No one has earned anything. However, the whole town is now out of debt and looking to the future with a lot more optimism.
And that, dear ladies and gentlemen, is how a basic financial bailout package works!