(This was sent in by client, “Dr. M”)<\/p>\n
Ruth is the proprietor of a \u00a0 bar in Chicago. In order to increase sales, she decides to allow her loyal customers – most of whom are unemployed alcoholics – to \u00a0 drink now but pay later.<\/p>\n
She has the good sense to keep \u00a0 track of the drinks consumed, with the help of an expensive \u00a0 point-sale-software program paid for by an SBA loan. These are carried \u00a0 on the books as “customer loans”.<\/p>\n
Word gets around, and new customers flood into \u00a0 Ruth’s bar.<!–more–><\/p>\n
Taking advantage of her customers’ freedom \u00a0 from immediate payment constraints, Ruth increases her prices for wine and beer, \u00a0 the most-consumed beverages. Her \u00a0 sales volume increases massively.<\/p>\n
A young and \u00a0 dynamic customer service consultant at the local bank recognizes these customer debts as valuable \u00a0 future assets and increases Ruth’s credit limit.He sees no reason for \u00a0 undue concern since he has taken an assignment of the debts of \u00a0 the alcoholics as collateral.<\/p>\n
At the bank’s \u00a0 corporate headquarters, expert bankers transform these “customer assets” into DRINKBONDS, ALKBONDS and \u00a0 PUKEBONDS. These securities are \u00a0 then traded on markets worldwide. No one really understands what these \u00a0 abbreviations mean and how the \u00a0 securities are guaranteed. Nevertheless, as their prices continuously climb, the securities \u00a0 become top-selling items.<\/p>\n
One day, although the prices are still \u00a0 climbing, a risk manager (subsequently fired due to his \u00a0 negativity) decides that the time has come to \u00a0 demand payment of the debts owed by the patrons of Ruth’s bar. \u00a0 However, very few are able to pay \u00a0 back the debts and Ruth becomes \u00a0 unable to keep up her loan payments. Within a short time she \u00a0 files bankruptcy.<\/p>\n
DRINKBOND and ALKBOND drop in price by 95 \u00a0 %. PUKEBOND performs better, stabilizing in price after dropping by 80 %.<\/p>\n
The \u00a0 suppliers of Ruth’s bar, having granted her generous payment terms, are \u00a0 now in trouble. Her wine supplier \u00a0 claims bankruptcy; her beer supplier is taken over by a competitor.<\/p>\n
The bank gets saved by the Government \u00a0 following dramatic round-the-clock consultations between leaders of the governing \u00a0 political parties.<\/p>\n
The funds required for this purpose are \u00a0 obtained by taxes levied on the non-drinkers.<\/p>\n","protected":false},"excerpt":{"rendered":"
(This was sent in by client, “Dr. M”) Ruth is the proprietor of a \u00a0 bar in Chicago. In order to increase sales, she decides to allow her loyal customers – most of whom are unemployed alcoholics – to \u00a0 drink now but pay later. She has the good sense to keep \u00a0 track of […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[5,12],"tags":[481,266],"class_list":["post-2573","post","type-post","status-publish","format-standard","hentry","category-economy","category-markets","tag-economy","tag-sunday-fun","et-doesnt-have-format-content","et_post_format-et-post-format-standard"],"acf":[],"_links":{"self":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts\/2573","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/comments?post=2573"}],"version-history":[{"count":0,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts\/2573\/revisions"}],"wp:attachment":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/media?parent=2573"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/categories?post=2573"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/tags?post=2573"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}