Heidi is the proprietor of a bar in Berlin . In order to increase sales, she
decides to allow her loyal customers - most of whom are unemployed alcoholics -
to drink now but pay later. She keeps track of the drinks consumed on a ledger
(thereby granting the customers loans).
Word gets around and as a result increasing numbers of customers flood into
Heidi's bar. Taking advantage of her customers' freedom from immediate payment
constraints, Heidi increases her prices for wine and beer, the
most-consumed beverages. Her sales volume increases massively.
A young and dynamic customer service consultant at the local bank recognizes
these customer debts as valuable future assets and increases Heidi's borrowing
limit. He sees no reason for undue concern since he has the debts of the
alcoholics as collateral.
At the bank's corporate headquarters, expert bankers transform these customer
assets into DRINKBONDS, ALKBONDS and PUKEBONDS. These securities are then
traded on markets worldwide. No one really understands what the abbreviations
mean and how the securities are guaranteed. Nevertheless, as their prices
continuously climb, the securities become top-selling items.
One day, although the prices are still climbing, a risk manager of the bank
(subsequently of course fired for his negativity) decides that slowly the time
has come to demand payment of the debts incurred by the drinkers at Heidi's bar.
However, they cannot pay back the debts. Heidi cannot fulfil her loan
obligations and claims bankruptcy. DRINKBOND and ALKBOND drop in price by 95 %.
PUKEBOND performs better, stabilizing in price after dropping by 80 %.
The suppliers of Heidi's bar, having granted her generous payment due dates and
having invested in the securities are faced with a new situation. Her wine
supplier claims bankruptcy, her beer supplier is taken over by a competitor.
The bank is saved by the Government following dramatic round-the-clock
consultations by leaders from the governing political parties. The funds
required for this purpose are obtained by a tax levied against the non-drinkers.
__________________________________________________________________
Yahoo! Canada Toolbar: Search from anywhere on the web, and bookmark your
favourite sites. Download it now at
http://ca.toolbar.yahoo.com.
