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Updated over 15 years ago,
The fix for the whole debacle - Vapor Paper Clarified...
"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?"
Found at a link with some other interesting articles.
http://www.ritholtz.com/blog/