I think this is some thing all of us will understand.

Heidi is the proprietor of a bar somewhere in Europe. In order to increase
sales, she decides to allow her loyal customers - most of whom are
unemployed alcoholics - to drink now but pay later. She keeps track of the
drinks consumed on a ledger (thereby granting the customers loans).



Word gets around and as a result increasing numbers of customers flood into
Heidi's bar. Taking advantage of her customers' freedom from immediate
payment constraints, Heidi increases her prices for wine and beer, the
most-consumed beverages. Her sales volume increases massively.


A young and dynamic customer service consultant at the local bank recognizes
these customer debts as valuable future assets and increases Heidi's
borrowing limit.


He sees no reason for undue concern since he has the debts of the alcoholics
as collateral. At the bank's corporate headquarters, expert bankers
transform these customer assets into DRINKBONDS, ALKBONDS and PUKEBONDS.
These securities are then traded on markets worldwide. No one really
understands what these abbreviations mean and how the securities are
guaranteed. Nevertheless, as their prices continuously climb, the securities
become top-selling items.


One day, although the prices are still climbing, a risk manager
(subsequently of course fired due his negativity) of the bank decides that
slowly the time has come to demand payment of the debts incurred by the
drinkers at Heidi's bar.


However they cannot pay back the debts.
Heidi cannot fulfill her loan obligations and claims bankruptcy.


DRINKBOND and ALKBOND drop in price by 95 %. PUKEBOND performs better,
stabilizing in price after dropping by 80 %.


The suppliers of Heidi's bar, having granted her generous payment due dates
and having invested in the securities are faced with a new situation. Her
wine supplier claims bankruptcy, her beer supplier is taken over by a
competitor.


The bank is saved by the Government following dramatic round-the-clock
consultations by leaders from the governing political parties.


The funds required for this purpose are obtained by a tax levied on the
non-drinkers.


Finally an explanation I understand ...
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