OT: Where did the money go??

My head just exploded!!!! Victoria

Harry has never had much use for Czar. Cash used to play with him and they'd make a point of putting Czar out if Cash was out or even coming up and asking if Cash could come out and play. But then one day Czar went after Cash for getting patted by K. and I had to break them up. Cash has refused to have anything to do with Czar ever since. If they're out together, Czar will circle Cash yipping, inviting him to play, while Cash stares off into the distance as if Czar didn't exist.

I think Begian Tervuren are really Irish.

Elizabeth

the Biggest part of the money went into Salaries for the managers and all the workers ,,, another big part `went`, on the `OverHead`, office things [from paper to documents to machinery etc,,,], company also had Advertisement fees etc,,,, and all with an Open hand , since it wasn`t `Their money`, any way , but money they controlled .... mirjam

Hope you didn't lose any pieces! LOL It's simple, just for fun play the bankruptcy game; Mark wants a few beers so he borrows $10 from a buddy of his. You need $5 for parrot feed so Mark decides to be a banker. You sign a loan agreement and borrow $10 from Mark on Monday, Mark signs a loan agreement and borrows $10 from you on Tuesday, You sign a loan agreement and borrow $10 from Mark on Wednesday, Mark signs a loan agreement and borrows $10 from you on Thursday, You sign a loan agreement and borrow $10 from Mark on Friday.

No money has changed hands except for the $10 from Mark's buddy to Mark and from Mark to you. The other loans Mark made to you are listed in Mark's hedge fund receivable account. The loans you made to Mark are listed in your hedge fund receivable account. The loans Mark and you owe each other are listed in off record accounts payable. Out of sight out of mind.

No business is done on the weekend.

As of Monday morning you owe Mark $30 and even though he has no money he can claim to the world that he has $30 in assets (the loans to you are on the books).

As of Monday morning even though you only have $10 you can claim to the world that you have another $20 in assets (the loans to Mark are on the books).

Later Monday morning you spend $10 on parrot feed.

Monday afternoon Mark's buddy wants his $10 back so Mark calls in the first loan of $10 that he gave you a week ago. Mark loaned you $30 on the books surely you can pay $10 back.

You signed for $30 during the week, you spent $10 on parrot feed and you are broke. You can't pay Mark. Your credit rating is kaput and you can't borrow any money from anyone. You owe $30 on the books, you have no cash but there are $20 in loans to Mark that you can't collect.You declare bankruptcy.

Mark has no money and he can't pay his buddy the $10 that he borrowed. Mark can't collect the $30 in loans he made to you on the books. He can't pay you the $20 that you loaned him on the books. Mark's credit rating is kaput and he can't borrow any money from anyone. Mark declares bankruptcy.

The parrot flaps it's corporate wings and goes to the gommermint claiming that if the gommermint doesn't bail out the fininacial banks of Mark, Victoria and Buddy Inc. that the whole financial system will fail and there won't be any money for parrot feed. The gommermint gives Mark $40, $10 is for his buddy, $20 is for the money he owes Victoria and $10 is to start over. Mark pays his buddy and buys $30 worth of beer.

The gommermint gives Victoria $40, $30 is for the money she owes mark, $10 is for parrot feed. Victoria buys $5 worth of parrot feed and a cross stitch chart and floss worth $35.

The gommermint had suspected that the parrot would be left high and dry with no parrot feed for bringing the finanacial problem to their attention and it gives the parrot a $10 week golden featherchute. Everyone lives happy ever after.

The New York Times has said that the total bail out to the financial bandits is now somewhere near $7.8 Trillion dollars. That is half the USA gross domestic product for 2007 IIRC. Ain't NO-WAY there was $7.8 Trillion dollars in default sub-prime loans. It has been reported that default sub-prime loans in 2009 will be as bad as 2008 - if that means another $7.8 Trillion in bail out money to the financial bandits prepare for global warming on a big scale. It takes a lot of trees and linen to print $15.6 Trillion dollars. There is however a silver lining to every storm - want to make a lot of money? - buy shares in the companies that make green ink and paper used in printing money.

Fred

Excellent explanation Fred and amusing to boot. I'm voting for you for Prime Minister, you would be a wonderful replacement for St Harper.

Oh my gawd Elizabeth, I have a miserable cold and you just had to make me snort tea through my nose...

Didn't the whole situation start because Mark-baby borrows and some idiot lends it to him? Why can't the Marks of the world operate on a cash basis? Ain't got it - no beer. Oh, I forgot - he's entitled.

Mark being just a name, of course. We owe nothing other than our mortgage and real estate taxes. Blame the administration who de-regulated the savings and loans. I thought it was only mobsters who bought out debt and charged more for it to be paid back. Oops, I forgot the mob is running things till Jan. 20. Victoria

Oh, FRED?

May I print this out for my Political Science 101 class?

Elizabeth

Free neti pot. No charge.

Elizabeth

Entitlement aside, lots of small business would never be able to function without short term loans. You have to have money to pay your workers to do the jobs that will be invoiced and received next month. You can't pay them until you get paid, but you can't get paid until they do the work, which they won't do unless you pay them. Solution, short term loans.

Elizabeth

That is true but the big guys went wild, wild because their greed became too great. It seemed a small business (salt of the earth in many cases) had a very hard time to borrow a small amount, whereas another bank borrowing 10 billion, found it easy.

The problem was they were selling the debt so each time they sold it, it was not actual, it was virtual. If people default, which they inevitably do in a downturn as bad as this one, the owners of the debt who were un-regulated will have to foot the bill, pay the vig, so to speak. It's banker gambling. It never should have happened.

When we bought our house, the mortgage changed hands at least 11 times in ten years. It's been stable now for over five, but the 11 tiimes are the ones who owe the points and they simply don't have it because they played with Monopoly money. Victoria

Didn't do much good!

Shall I send your purchase price back?

Elizabeth

That's all right

At least DH took DD to hockey today

Hi Elizabeth,

Be my guest and print it out but do you really want to teach your students the nasty things that can be done in accounting??

A Law or Lawless 101 class might be a better setting - No??

I would love to see two students act out the borrowing scene and the reaction of the rest of the class at the end. Parrot or no parrot. On the other hand they might conclude that this playright is a nut. LOL

May I print this out for my Political Science 101 class?

Elizabeth