Monday, 22 November 2010

The Bail-Out Theory Explained

One bunch of 'short-term' innumerates borrows money to lend to another bunch of 'short-term' innumerates, whereupon the recipient innumerates inform their taxpayers that they, the taxpayers, will be  responsible for repayment. Meanwhile simultaneously, the donor innumerates inform their taxpayers that they, the taxpayers, are not only liable for funding the loan but are also liable in the event of any subsequent repayment default.

4 comments:

Mark Wadsworth said...

I've tried to keep track of all this, but to be honest, it has descended into complete insanity, and your summary is probably more accurate than anybody else's.

Witterings From Witney said...

thanks MW, praise indeed!

Anonymous said...

It's crazy all they are doing is shuffling digital money around from one nation to another.
It's a bankers - traders dream.
The reason is real wealth stays put .
Real wealth is land good land were food can be grown.
Real wealth is a skilled educated workforce.
Real wealth is the nations infrastructure.
Not pretend digital amounts.

Perhaps the problem is it's too easy noew to transfer wealth from one region to another at the flick of a switch.

Anonymous said...

I do like the piece, short and pithy but to the point. It really is insane, but then this stupidity started in the States with government telling banks to lend to those who could not pay it back. Now we are doing it but it is the government who is behind it all. Repeat what has failed before, expecting a different ending. That's government!
Derek