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The Solution to the Global Financial Crisis

 
paladin
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05/11/2009 11:06 PM
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The Solution to the Global Financial Crisis
By Prieur du Plessis - May 11th, 2009,


[link to www.ritholtz.com]
Barry L. Ritholtz....site





In a small town on the South Coast of France, the holiday season is in full swing, but it is raining so there is not too much business taking place.

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 a 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 quickly goes to the hotel, as she was owing the hotel for her hourly room used to entertain clients.

At that moment, the rich Russian comes down to reception and informs the hotel owner that the 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’s people look optimistically towards their future.

Could this be the solution to the global financial crisis?
Passerby

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05/11/2009 11:09 PM
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Re: The Solution to the Global Financial Crisis
Interesting scenario, Paladin.


If only...
Anonymous Coward
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05/11/2009 11:11 PM
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Re: The Solution to the Global Financial Crisis
I don't know the sollution, but htis speaks volumes
paladin  (OP)

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05/11/2009 11:14 PM
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Re: The Solution to the Global Financial Crisis
Interesting scenario, Paladin.


If only...
 Quoting: Passerby




thanks Passerby.....I guess it is to be the one with the 100 note
TAC

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05/11/2009 11:14 PM
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Re: The Solution to the Global Financial Crisis
The solution to the 'Global Finanical Crisis' is to scrap the entire system and implement a more equitable one.

But that is unlikely to happen without a revolution.

*sigh*
Take your dogma and shove it!

Life is not about what happens to you, it's about how you deal with it.
Anonymous Coward
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05/11/2009 11:21 PM
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Re: The Solution to the Global Financial Crisis
The solution to the 'Global Finanical Crisis' is to scrap the entire system and implement a more equitable one.

But that is unlikely to happen without a revolution.

*sigh*
 Quoting: TAC


I agree. What we now have is a system that ensures a plantation form of governance for the forseeable future.
Passerby

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05/11/2009 11:22 PM
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Re: The Solution to the Global Financial Crisis
Interesting scenario, Paladin.


If only...





thanks Passerby.....I guess it is to be the one with the 100 note
 Quoting: paladin



Yeah, and a bank was the only item not listed in the above example.

The buck would have stopped there.
paladin  (OP)

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05/11/2009 11:30 PM
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Re: The Solution to the Global Financial Crisis
Passerby



on the org link there are 52 people who talk about it..

[link to www.ritholtz.com]
Starseeder

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05/11/2009 11:34 PM
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Re: The Solution to the Global Financial Crisis
Problem with this scenario is that the prostitute is the Bank... and it will not pay back the hotel owner.
Simplicity is the key to Heaven...more than ever.

Verily I say unto you, Except ye be converted, and become as little children, ye shall not enter into the kingdom of heaven. (Mat 18:3)
Anonymous Coward
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05/11/2009 11:35 PM
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Re: The Solution to the Global Financial Crisis
The only people who are probably going to end up with debt after its all said and done will probably be the people who were paying their bills all along.
Passerby

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05/11/2009 11:38 PM
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Re: The Solution to the Global Financial Crisis
Passerby



on the org link there are 52 people who talk about it..

[link to www.ritholtz.com]
 Quoting: paladin




Hahaha, some of those comments are quite hilarious ("Was Elliot Spitzer the farmer?")... a few address taxes, derivatives and gov't payouts.

Thanks.
paladin  (OP)

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05/11/2009 11:44 PM
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Re: The Solution to the Global Financial Crisis
hey all.....the reason I think Berry posted this is..


inflation.....deflation.....??


both can wipe out debt..
falldown

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05/11/2009 11:44 PM
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Re: The Solution to the Global Financial Crisis
bump
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Passerby

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05/11/2009 11:51 PM
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Re: The Solution to the Global Financial Crisis
hey all.....the reason I think Berry posted this is..


inflation.....deflation.....??


both can wipe out debt..
 Quoting: paladin


Are you talking about stag-deflation?

I pulled up an article that I read back in the fall...

[link to www.forbes.com]

What do you think about this, Paladin?
paladin  (OP)

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05/11/2009 11:58 PM
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Re: The Solution to the Global Financial Crisis
now if you all think..

heads I win


tails I win..

no more debt..

this is fine......that is if you are the bond holders of this debt..


the car companies are about to put the bond holders under the bus..and back over them..


get ready for the bond break down....
Anonymous Coward
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05/12/2009 12:06 AM
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Re: The Solution to the Global Financial Crisis
Each one had to pay 30% income tax and the government got the money...


.
paladin  (OP)

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05/12/2009 12:11 AM
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Re: The Solution to the Global Financial Crisis
hey all.....the reason I think Berry posted this is..


inflation.....deflation.....??


both can wipe out debt..


Are you talking about stag-deflation?

I pulled up an article that I read back in the fall...

[link to www.forbes.com]

What do you think about this, Paladin?
 Quoting: Passerby




Nouriel Roubini......I love to read what he post or what he says..



here is the deal.......get you ass into a mortgage you can afford.....the fed is giving you a gift from GOD...it is costing the country huge money......refi now......what the hell are you waiting for..
Anonymous Coward
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05/12/2009 12:11 AM
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Re: The Solution to the Global Financial Crisis
Yeah, and a bank was the only item not listed in the above example.

The buck would have stopped there.
 Quoting: Passerby


+1
Passerby

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05/12/2009 12:18 AM
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Re: The Solution to the Global Financial Crisis
Nouriel Roubini......I love to read what he post or what he says..



here is the deal.......get you ass into a mortgage you can afford.....the fed is giving you a gift from GOD...it is costing the country huge money......refi now......what the hell are you waiting for..
 Quoting: paladin


I wonder how long it's going to be before we see another merger with the big banks...
paladin  (OP)

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05/12/2009 12:26 AM
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Re: The Solution to the Global Financial Crisis
Passerby


my thinking is the big banks are dead..


this is why I posted a thread to get your money into a B or A... rated bank now.

the big banks are being held up to give you time to move..


they can not be saved


they can not say this out loud...
Passerby

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05/12/2009 12:30 AM
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Re: The Solution to the Global Financial Crisis
Passerby


my thinking is the big banks are dead..


this is why I posted a thread to get your money into a B or A... rated bank now.

the big banks are being held up to give you time to move..


they can not be saved


they can not say this out loud...
 Quoting: paladin



You don't think they'll merge "for show" first?
paladin  (OP)

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05/12/2009 12:36 AM
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Re: The Solution to the Global Financial Crisis
they will merge one or two..



they can not merge it all..


it is all for show.


my thinking...paladin
Passerby

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05/12/2009 12:40 AM
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Re: The Solution to the Global Financial Crisis
they will merge one or two..



they can not merge it all..


it is all for show.


my thinking...paladin
 Quoting: paladin


Agree... one or two mergers...
falldown

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05/12/2009 01:07 AM
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Re: The Solution to the Global Financial Crisis
now if you all think..

heads I win


tails I win..

no more debt..

this is fine......that is if you are the bond holders of this debt..


the car companies are about to put the bond holders under the bus..and back over them..


get ready for the bond break down....

 Quoting: paladin

When that happens and investors get jittery about the safety of their bonds, interest rates on new bonds shoot for the stars...and we've been waiting for something to trigger that move.

Instead of it happening slowly, this thing's going to come home to roost all at once, with the Treasury unable to sell at low rates, and big banks and other large companies throwing bondholders into the bin.

Any jump now would be painful for a lot of people that are already struggling, but this looks to be lining up for a scary run up the percentage charts.

Market fundamentals are around 1982...look up interest rates back then, and try not to choke...
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Anonymous Coward
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05/12/2009 01:10 AM
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Re: The Solution to the Global Financial Crisis
The solution is in the old testament.
falldown

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05/12/2009 01:23 AM
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Re: The Solution to the Global Financial Crisis
The solution is in the old testament.
 Quoting: Anonymous Coward 677231

Probably. I'm gathering my stone collection a little here and there... 3334
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Anonymous Coward
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05/12/2009 01:23 AM
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Re: The Solution to the Global Financial Crisis
If only it was that simple, it would be good that's for sure.
Unfortunately its far more complex.
Anonymous Coward
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05/12/2009 01:26 AM
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Re: The Solution to the Global Financial Crisis
The solution is in the old testament.

Probably. I'm gathering my stone collection a little here and there... 3334
 Quoting: falldown


I meant not charging interest and a year of Jubilee...

Though stoning the bastards that help get us here wouldn't be a bad idea either.
Irdooomed

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05/12/2009 01:31 AM
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Re: The Solution to the Global Financial Crisis
Each one had to pay 30% income tax and the government got the money...


.
 Quoting: Anonymous Coward 639349


Which it used to bailout the banks, so they didn't foreclose on the hotel!
Holy cow! It's the woowoo patrol!
falldown

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05/12/2009 02:07 AM
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Re: The Solution to the Global Financial Crisis
The solution is in the old testament.

Probably. I'm gathering my stone collection a little here and there... 3334


I meant not charging interest and a year of Jubilee...

Though stoning the bastards that help get us here wouldn't be a bad idea either.
 Quoting: Anonymous Coward 677231

lol...I know, I couldn't resist, though. grinning
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Doctor What

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05/12/2009 02:12 AM
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Re: The Solution to the Global Financial Crisis
5 smile_kiss
The chariots of God are tens of thousands, and thousands of thousands.





GLP