A simple way of explaining the Greek bail out plan
It is a slow day in a little Greek Village .
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 village, 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 the 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 tavern.
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 village 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
Well Explained