Explanation of the economy in 2011 as an example Bashny.Net

Mary is the owner of the bar. One day she realized that almost all of its customers - the unemployed alcoholics, so it can no longer contain the bar, or go broke.

To solve this problem, she comes up with a new marketing plan, under which its customers can drink now, but pay later.

It records the amount of alcohol consumed in a special book (thus providing customers with a loan).
On the strategy of Mary "drink now, pay later 'fame begins to walk, and as a result, at the bar of Mary increased flow of customers.

Soon her bar shows the largest sales volume in her city - prospects look rosy.

By providing its customers freedom from immediate payment demands, Mary met no resistance when, at regular intervals, it significantly increases the price of the most popular drinks - wine and beer.

Consequently, increased sales and bar Mary.

The young president of a local bank understands that these debts customers represent a valuable future assets and increases lending to Mary.

He sees no reason for concern, since as collateral it has debts of alcoholics.

via infocorn.org.ua





The headquarters of the bank's traders are experts come up with a way to earn huge commissions, transform these customer debts and Buhaloobligatsii Alkoobligatsii. Then these assets start to be traded on the international securities markets.

New investors do not fully understand that these securities, which have been sold to them as securities with the highest rating of "AAA" really are debts of unemployed alcoholics.

Prices for paper continued to grow and assets will soon become the most rapidly snapping up positions at the country's leading brokers.

Once again, even though the bond prices continue to rise, the risk manager of the local bank decides that the time has come to demand payment of debt accumulated in alcoholics in the bar of Mary. This he tells her.

Maria begins to demand money from their alcoholics, but being unemployed alcoholics can not return the loans.

Since Maria can not fulfill its credit obligations, she is forced to default. Now she is bankrupt.

The bar is closed and 11 workers are losing their jobs.

For one night Buhalo- Alkoobligatsii and lose in the price of 90 percent of the cost.

The volume value of those assets collapsed destroying the banking liquidity, and prevents the release of new loans, thus freezing credit and all economic activity.

Suppliers to the bar Mary gives her extended payment terms, invested their firms' pension funds in various securities. They discover that currently faced with the need to write-off bad debts and lost more than 90 percent of the estimated value of the bonds.

Her wine distributors as well declare bankruptcy, closing the family business, which fed three generations. Her beer vendor buys a competitor, who immediately closes the local factory and laying off 150 workers.

Fortunately, banks, brokerage firms and their leadership saved multibillion-dollar package from his friends in the government.

The funds for the rescue package was found by taxing the working middle class, which never looked in to the bar Mary.

Now you understand the economic situation in 2011?

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