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Why I disagree with the bailout

Discussion in 'Members' Lounge' started by 99sidude, Feb 17, 2010.

  1. 99sidude

    99sidude Moderator Moderator VIP

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    May 1, 2006
    Heidi is the proprietor of a bar in Detroit . She realizes that
    virtually all of her customers are unemployed alcoholics and, as such,
    can no longer afford to patronize her bar. To solve this problem, she
    comes up with a new marketing plan that allows her customers to drink
    now, but pay later.

    Heidi keeps track of the drinks consumed on a ledger (thereby granting
    the customers' loans). Word gets around about Heidi's "drink now, pay
    later" marketing strategy and, as a result, increasing numbers of
    customers flood into Heidi's bar. Soon she has the largest sales volume
    for any bar in Detroit .

    By providing her customers freedom from immediate payment demands, Heidi
    gets no resistance when, at regular intervals, she substantially
    increases her prices for wine and beer, the most consumed beverages.
    Consequently, Heidi's gross sales volume increases massively.

    A young and dynamic vice-president at the local bank recognizes that
    these customer debts constitute valuable future assets and increases
    Heidi's borrowing limit. He sees no reason for any undue concern, since
    he has the debts of the unemployed alcoholics as collateral.

    At the bank's corporate headquarters, expert traders figure a way to make
    huge commissions, and transform these customer loans into DRINKBONDS,
    ALKIBONDS and PUKEBONDS. 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 alcoholics.
    Nevertheless, the bond prices continuously climb, and the 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 at Heidi's bar. He so
    informs Heidi.

    Heidi then demands payment from her alcoholic patrons, but being
    unemployed alcoholics they cannot pay back their drinking debts. Since
    Heidi cannot fulfill her loan obligations she is forced into bankruptcy.
    The bar closes and the eleven employees lose their jobs.

    Overnight, DRINKBONDS, ALKIBONDS and PUKEBONDS drop in price by 90%. The
    collapsed bond asset value destroys the banks liquidity and prevents it
    from issuing new loans, thus freezing credit and economic activity in the
    community. The suppliers of Heidi's bar had granted her generous payment
    extensions and had invested their firms' pension funds in the various
    BOND securities. They find they are now faced with having to write off
    her bad debt and with losing over 90% of the presumed value of the bonds.
    Her wine supplier also claims bankruptcy, closing the doors on a family
    business that had endured for three generations, her beer supplier is
    taken over by a competitor, who immediately closes the local plant and
    lays off 150 workers.

    Fortunately though, the bank, the brokerage houses and their respective
    executives are saved and bailed out by a multi-billion dollar no-strings
    attached cash infusion from their cronies in Government. The funds
    required for this bailout are obtained by new taxes levied on employed,
    middle-class, non-drinkers who have never been in Heidi's bar.

    Now do you understand?
  2. Drake

    Drake Well-Known Member VIP

    Likes Received:
    Oct 6, 2003
    But, but the guys drinking Patron by the bottle and Crystal should pick up the tab! They obviously have money!
  3. B16

    B16 Super Moderator VIP

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    Sep 30, 2002
    yay area, CA
  4. klyph

    klyph Dismember VIP

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    Aug 14, 2006
    North Pole, AK
    Our government is run by criminals.

    I was watching COPS recently, they had an undercover officer selling crack. A middle aged guy drives up buys $20 worth of rock, drives a block down the street, where the police pull him over, rip him out of his car, and tackle him with guns drawn. They then take the drugs that THEY SOLD TO HIM back, impound his car, and take him to jail until he pays his fine. He will also have to pay to get his car back.

    So, it is LEGAL for the police to sell drugs, steal them back, beat you up, steal your car, and kidnap you until you pay ransom. Whereas when "civilian" criminals do this, they are guilty of felony distribution of narcotics, felony grand theft auto, felony kidnapping, felony assault, and felony extortion.

    Sorry for the off topic, but FUCK THE POLICE, and FUCK THE GOVERNMENT.
  5. E_SolSi

    E_SolSi Member of the 20 nut club Moderator VIP

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    Sep 28, 2002
  6. invisibledemon

    invisibledemon Bored Moderator VIP

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    Jan 15, 2007
    This..... is the original gangster.

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