Current Financial Crisis Explained
Published by Rick on Friday, January 23, 2009.
Once upon a time a man appeared in a village and announced to the villagers that he would buy weasels for £10 each.
The villagers, seeing that there were lots of weasels around, went out to the woods and started catching them. The man bought thousands at £10 and, as supply started to diminish, the villagers stopped their effort.
He next announced that he would now buy weasels at £20 each.
This renewed the efforts of the villagers and they started catching weasels again.
Soon the supply diminished even further and people started going back to their farms.
The offer increased to £25 each and the supply of weasels became so scarce it was an effort to even find a weasels, let alone catch it!
The man now announced that he would buy weasels at £50 each! However, since he had to go abroad on some business, his assistant would buy on his behalf.
In the absence of the man, the assistant told the villagers: "Look at all these weasels in the big cage that the man has already collected. I will sell them to you at £35 and when the man returns from abroad, you can sell them to him for £50 each."
The villagers rounded up all their savings and bought all the weasels for £700 billion.
Strange as it may seem they never saw the man or his assistant again, only lots and lots of weasels!
Now you have a better understanding of how the UK banks bailout plan will work.
The villagers, seeing that there were lots of weasels around, went out to the woods and started catching them. The man bought thousands at £10 and, as supply started to diminish, the villagers stopped their effort.
He next announced that he would now buy weasels at £20 each.
This renewed the efforts of the villagers and they started catching weasels again.
Soon the supply diminished even further and people started going back to their farms.
The offer increased to £25 each and the supply of weasels became so scarce it was an effort to even find a weasels, let alone catch it!
The man now announced that he would buy weasels at £50 each! However, since he had to go abroad on some business, his assistant would buy on his behalf.
In the absence of the man, the assistant told the villagers: "Look at all these weasels in the big cage that the man has already collected. I will sell them to you at £35 and when the man returns from abroad, you can sell them to him for £50 each."
The villagers rounded up all their savings and bought all the weasels for £700 billion.
Strange as it may seem they never saw the man or his assistant again, only lots and lots of weasels!
Now you have a better understanding of how the UK banks bailout plan will work.
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