A solution to the financial crisis.

[migs0624]

got this from LAcars.


It is August. In a small town on the South Coast of France, holiday season

is in full swing, but it is raining so there is not too much business
happening. Everyone is heavily in debt.

Luckily, a rich Russian tourist arrives in the foyer of the small local
hotel. He asks for a room and puts a Euro100 note on the reception counter,

takes a key and goes to inspect the room located up the stairs on the third
floor.

The hotel owner takes the banknote in hurry and rushes to his meat supplier
to whom he owes E100.
The butcher takes the money and races to his supplier to pay his debt.
The wholesaler rushes to the farmer to pay E100 for pigs he purchased some
time ago.

The farmer triumphantly gives the E100 note to a local prostitute who gave
him her services on credit.
The prostitute goes quickly to the hotel, as she owed the hotel for her
hourly room use to entertain clients.
At that moment, the rich Russian is coming down to reception and informs the
hotel owner that the proposed room is unsatisfactory and takes his E100 back
and departs.

There was no profit or income. But everyone no longer has any debt and the
small town people look optimistically towards their future.

COULD THIS BE THE SOLUTION TO THE Global Financial Crisis?
Or, is there a catch here?

[ghosthunter]

Over-simplied and you end up with lots of people owing money to other people.

Such is the reason why so many people owe a lot of money to the banks on their credit cards. The bad thing is these people can't pay their credit card bills so it just stacks up and up.

[uls]

the world is way more complex than a small town

besides, using the small town analogy, where the world = a small town

the rich Russian tourist, being someone that comes from outside the small town, would have to be an alien from another planet

since an alien would not have Earth currency, he should bring to earth something Earthlings would accept as money

maybe the alien could bring to earth an asteroid made of solid gold

hehehe

(i can see gold price falling already)

[shadow]

why are you all serious about this? just take it as what it is....a fun read....

[uls]

who's serious?

i was talking about an alien in his spaceship pulling an asteroid made of gold to Earth

[willvill]

amazing..

The Russian provided credit for a few minutes and so many problems or "utangs" were solved.

Lesson: Someone should provide credit for a certain period of time to those with financial problem like Chrysler, GM,...etc. because they provide work to people.

How about in the Philippines? Banks should charge small interests like those in the US for those getting vehicles to be used most especially in business.

Those companies who have many workers should be given some considerations or some kind of support from the government during this economic downturn. How is that?

[valvura]

got this from LAcars.
It is August. In a small town ......
COULD THIS BE THE SOLUTION TO THE Global Financial Crisis?
Or, is there a catch here?

I'm not analytical but who was short-changed here? The E100 was non-existent but was able to settle the debts, how did it happen? in the beginning the hotel owner has zero liquid asset wherein he has E100 collectible and E100 liability. At the end of the story, still zero asset but this time, 0 collectible & 0 liability. which is better?

but i know there are people who uses the utang-bayad-utang principle and are able to get out of the cycle or otherwise .

[migs0624]

same question, sino naluge?
i can't think of an answer. is this what they call a domino payment?

[raine]

kung tutuusin di na kailangan yung russian and his E100 kasi meron silang pereperehong utang na E100 paikot lang sa kanila lang kaya na nilang ma kcancel ang mga utang nila.

[b1rken5tock]

ayus... pude pala utang sa prosti....