One Simplified Explanation of Euro Bailout ...

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cathfromsaron | 14:21 Mon 05th Dec 2011 | Business & Finance
10 Answers
It is a slow day in a little Greek Village.

The sun 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 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 note and runs next door to pay his debt to the butcher.

The butcher takes the €100 note and runs 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 feed and fuel. The guy at the Farmers' Co-op takes the €100 note and runs to pay his drinks bill at the taverna. The publican slips the money along to the local prostitute drinking at the bar, who has also been facing hard times and has had to offer him "services" on credit. The hooker then rushes to the hotel and pays off her room bill to the hotel owner with the €100 note.

The hotel proprietor then places the €100 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 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, Ladies and Gentlemen, is how the bailout package works.

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I think you've copied an pasted a bit too much.
It does't really work as everyone owed money and was owed the same amount so had no net debt anyway.
This is how the economy works
Question Author
yes possibly i did but never mind!

sent by my dad and supposed to be humorous!
Maybe he copied it from Answerbank
Well it made me laugh anyway. I obviously don't think about things enough...
Well , by my reckoning not everyone is happy . Everyone has had what was owed to them payed except for the hotelier -the debt owed to him by the prostitute will never be paid back (the tourist took the note) . The hotelier started the cycle with the 100 euro note (which wasn't his) but by doing so ended up sacrificing the the 100 euros which were owed to him .
It is a clever tale, but it should be in the Jokes section. Last time I saw it here it was being suggested as an explanation about quantitative easing, would you believe ?

Is the suggestion that the bailout is going to immediately be paid back as it will start money circulating and all is well ? Not holding my breath ;-)
The hotelier has been paid.

"The hooker then rushes to the hotel and pays off her room bill to the hotel owner with the €100 note."

Naturally the hotelier then had to pay back the tourist who opted not to stay after all.
Wrong section - should be in jokes really, as it was before
so maybe the euro should be in the jokes section too?
Question Author
thanks for replies!

my dad defo received it by email, but i didn't check AB first! lol!

cath x

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