European bailout mechanism
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 Euro 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 some keys and, as soon as the visitor has walked upstairs, the hotelier grabs the 100 Euro note and runs next door to pay his debt to the butcher.
The butcher takes the 100 Euro note and runs down the street to repay his debt to the pig farmer.
The pig farmer takes the 100 Euro note and heads off to pay his bill to his supplier of feed and fuel.
The guy at the Farmers' Co-op takes the 100 Euro note and runs to pay his
drinks bill at the tavern.
The publican slips the money along to the local lady of the night drinking
at the bar.
The local lady of the night then rushes to the hotel and pays off her room
bill to the hotel owner with the 100 Euro note.
The hotel proprietor then places the 100 Euro 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 Euro 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.
