Comments on: How a Bail-out Works http://r3dux.org/2011/01/how-a-bail-out-works/?utm_source=rss&utm_medium=rss&utm_campaign=how-a-bail-out-works A number-pimping side project from the valleys in *NEW* upside-down flavour. Mon, 13 May 2013 03:00:11 +0000 hourly 1 http://wordpress.org/?v= By: Andrea http://r3dux.org/2011/01/how-a-bail-out-works/#comment-6444 Andrea Fri, 28 Jan 2011 10:36:03 +0000 http://r3dux.org/?p=3956#comment-6444 And we all know…. give the wife both $20 and she will save it for a rainy days trip to JB :)

]]> By: r3dux http://r3dux.org/2011/01/how-a-bail-out-works/#comment-6443 r3dux Fri, 28 Jan 2011 10:32:36 +0000 http://r3dux.org/?p=3956#comment-6443 Okay, I’m the BUYER. I place $20 in the box. And then I buy the box for $30. I’m out $50 in total, but I get the box, which contains $40, so I’m down $10.

Now I’m the SELLER. I place $20 in the box (so I’m out $20), then I sell the box for $30 (so I’m up $10).

Buyer down $10. Seller up $10.

Balance.

Still, it’s a shitcock when you first look at it! =D

]]> By: r3dux http://r3dux.org/2011/01/how-a-bail-out-works/#comment-6442 r3dux Fri, 28 Jan 2011 10:24:01 +0000 http://r3dux.org/?p=3956#comment-6442 That’s another good one =D

I’m sure they both work on the same principle…. hehehe. Damn ye! The box isn’t yours to sell! =P

]]> By: shetboy http://r3dux.org/2011/01/how-a-bail-out-works/#comment-6441 shetboy Fri, 28 Jan 2011 08:21:40 +0000 http://r3dux.org/?p=3956#comment-6441 An alternative to the missing dollar riddle is the Petty Cash problem

It’s where reality confuses the brains inner logic

]]> By: r3dux http://r3dux.org/2011/01/how-a-bail-out-works/#comment-6439 r3dux Fri, 28 Jan 2011 07:23:57 +0000 http://r3dux.org/?p=3956#comment-6439 LoL! Very astute, sir.

I just thought it was one of those interesting tales like the missing dollar =D

]]> By: shetboy http://r3dux.org/2011/01/how-a-bail-out-works/#comment-6438 shetboy Fri, 28 Jan 2011 07:18:43 +0000 http://r3dux.org/?p=3956#comment-6438 Or another method that bailout money is raised…

- Government issues bonds (Investors loan money to government for guaranteed return over fixed period)
- Provide bailout money to entity in need
- Government pays back principal plus interest to investor upon bond maturity (can be 30years)
- Government raises this money by way of tax revenues
- Your children pay for the bailout

But hey, at least the government bought the votes of today with the money of tomorrow!

]]> By: shetboy http://r3dux.org/2011/01/how-a-bail-out-works/#comment-6437 shetboy Thu, 27 Jan 2011 10:28:42 +0000 http://r3dux.org/?p=3956#comment-6437 Yea…. not quite, more like…

Government introduces Quantatative Easing and creates 500bn out of thin air (think: run printing press non-stop)
Existing money base now diluted proportionately
Commodity suppliers realise this and raise prices for oil, corn, steel, etc
Increased commodity price increases both cost of business and cost of living
Inflation results
Everyone’s living standards drop as business cannot match pay rises to real rate of inflation, and this isn’t CPI

But hey, at least the government can inflate a portion of their debt away!

]]>