Friday, May 28, 2010

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All clear

requested is a prestigious financial advisor to explain this crisis in a simple way, so that ordinary people understand their causes.

This was his story:

A man went to a village where he had never been before and offered its people 100 euros for every donkey that he sold. Much of the population to sell their animals. The next day came and offered the best price, 150 per burrito, and a similar number of people sold theirs. And then offered 300 euros and the rest of the people sold the last donkeys. Seeing that there were no more animals, offered 500 euros per burrito, meaning that the purchase next week, and left. The next day he sent his assistant with the donkeys he bought from the same village for donkeys to offer 400 euros each. Given the possible gain to the following week all the villagers bought their donkeys to 400 euros, and who does not have the money it borrowed. In fact, they bought all the donkeys in the region.
As expected, the assistant was gone, like the man who sold the donkeys, and never reappeared.

Result:

The village was full of donkeys and debt. (So \u200b\u200bmuch was the advisor)

Let's see what happened next:

Those who had borrowed the money, not sell the donkey, they could not repay the loan. Those who had borrowed money complained to the council saying that if charged, will ruin them, then they could not continue to ruin and all the people. For lenders not ruin, the mayor, instead of giving money to the common people to pay debts, gave it to the lenders themselves. But these, as much of the money collected, however, spared no debts to the people, which just went into debt. The Mayor of the City squandered the budget, which was also in debt. Then borrow money from other municipalities, but these will say they can not help because, as is ruined, can not collect what you pay after.

The result:

The "ready" in principle, covered. Lenders, with profits resolved and a lot of people who continue to charge what they borrowed plus interest, even taking over the devalued and donkeys with which they will never cover the entire debt. Many people broke and without a donkey for life. The City also ruined.

And the end result?:

To solve this and save all the people, the City lowered its staff salary adjustments and reforms and prepared for the people.

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