What is the economic crisis?, And explained it to me one day:
Heidi owns a bar in Berlin. Naturally, he wants to increase sales, and decides to allow its clients, most of whom are unemployed alcoholics, drink now and pay another day. Writes down in a notebook everything you consume each of its customers. This is a way as any other lending operations. Soon, thanks to word of mouth, the bar starts to fill Heidi customers.
As customers do not pay instantly, Heidi decides to increase profits rise the price of beer and wine are the drinks that customers consume the most. The profit margins soaring.
A bank manager working with Heidi, very enterprising, he realizes that the claims of customers of the bar are high value assets, and decides to increase the amount of the loan to Heidi. The bank's management sees no reason to worry because the bank loan is based for the return of the debts of the bar's patrons.
The bank's headquarters managers make these banking assets-bonds drink, Alcho-bonds and bank bonds - vomit. These bonds go to market and change hands in the international financial market. Nobody really understands the names mean so rare for these securities, nor understand that these bonds are guaranteed, even if they have any warranty or not. But as prices continue to rise steadily, the value of bonds goes up constantly.
However, although prices are rising, a financial risk consultant working in the same bank (adviser who by the way soon fired because of their pessimism) decides it's time to demand payment of debts customers of the bar of Heidi. But of course this can not repay debts. Heidi can not repay their bank loans and into bankruptcy.
The drink-
bonds and bonds alcoholic suffer a fall of 95% of its value. The vomit-bonds are slightly better, falling only 80%.
bar providers from Heidi, who gave lengthy payment delays and also bought bonds when the price began to rise, are in the same situation. The wine supplier goes bankrupt, and the beer does not sell the business to competition.
The government intervenes to save the bank, after talks between Prime Minister and leaders of other political parties. To fund the rescue of the bank, the government introduced a new tax too high paid by nondrinkers.
As customers do not pay instantly, Heidi decides to increase profits rise the price of beer and wine are the drinks that customers consume the most. The profit margins soaring.
A bank manager working with Heidi, very enterprising, he realizes that the claims of customers of the bar are high value assets, and decides to increase the amount of the loan to Heidi. The bank's management sees no reason to worry because the bank loan is based for the return of the debts of the bar's patrons.
The bank's headquarters managers make these banking assets-bonds drink, Alcho-bonds and bank bonds - vomit. These bonds go to market and change hands in the international financial market. Nobody really understands the names mean so rare for these securities, nor understand that these bonds are guaranteed, even if they have any warranty or not. But as prices continue to rise steadily, the value of bonds goes up constantly.
However, although prices are rising, a financial risk consultant working in the same bank (adviser who by the way soon fired because of their pessimism) decides it's time to demand payment of debts customers of the bar of Heidi. But of course this can not repay debts. Heidi can not repay their bank loans and into bankruptcy.
The drink-
bonds and bonds alcoholic suffer a fall of 95% of its value. The vomit-bonds are slightly better, falling only 80%.
bar providers from Heidi, who gave lengthy payment delays and also bought bonds when the price began to rise, are in the same situation. The wine supplier goes bankrupt, and the beer does not sell the business to competition.
The government intervenes to save the bank, after talks between Prime Minister and leaders of other political parties. To fund the rescue of the bank, the government introduced a new tax too high paid by nondrinkers.
Finally! One explanation that I understand!
(Written found in cyberspace)
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