How the Irish Bank Bailout worked..

[Coxy]

It seems to be a bizarre situation where everyone owes everyone else money but everyone's now paying it back with higher interest but no-one seems sure who the money is actually owed to or why it was borrowed in the first place.

When you look at things like the Irish bank bailout, my understanding is that we borrowed to money off someone else to lend to Ireland at a cheaper interest rate than what they could borrow it for! It all just seems to be lots of shuffling about of imaginary money.

Hopefully, this explains the bailout in simple terms.......

It is a slow day in a damp little Irish town. The rain 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 town, 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 pub.

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 town 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.

I hope that helps!!

[David Small]

Probably explains what happened to Northerrn Rock, Royal Bank of Scotland, Barclays and Lloyds TSB -

Except in your story there's no greedy fat bastards getting paid huge bonus's for shagging their employers and their customers !

[Coxy]

Originally Posted by davallew

Probably explains what happened to Northerrn Rock, Royal Bank of Scotland, Barclays and Lloyds TSB -

Except in your story there's no greedy fat bastards getting paid huge bonus's for shagging their employers and their customers !

that's where the hooker comes in to the equation!

and there's a good chance the publican is a greedy fat bastard as well!

[Phil Payne]

This is old now, but there was a time a decade or more ago when Computer Associates was very acquisitive:

http://www.isham-research.co.uk/ca.html

[B2AUDI80]

only problem with the irish bailout is the normal working man is the poor fcker that is paying it back!!!

[missfire]

How the Irish Bank Bailout worked..

ha! and 'the central banking scam' thrown in for good measure..

all of which are privately owned (although is is illegal for us to ask who the shareholders are)

lend money to the govt. ...at interest..(which creates debt) which in turn ends up driving up the required money supply (sorry..its not money is it.?.its paper..) which is, again, supplied...at interest...

all of which affects inflation and hence the value of our currencies..and the only people 'winning' out of all of this, as we 'pass the buck' as you put it...are the shareholders of the central banks..

(the queen is one of them...for all you 'royalists'..)(one of the.. ''Bank of England Nominees Limited'')

nifty control mechanism... in an age lacking, largely, in an abundance of god fearing subjects.

[styler]

so what your sayin is theres a hooker goin to call round..... nice ...better open the chocolate biccies....

[saint001]

what an awesome evaluation ..thankyou coxy i was wondering how it worked..now i know

[saint001]

but hows its the queens fault ,thats the only bit i dont get

[pimpdriver]

Originally Posted by styler

so what your sayin is theres a hooker goin to call round..... nice ...better open the chocolate biccies....

Trust you!!!