Thursday, February 12, 2009

Cows and the financial crisis

More cows
How random is it that I just happened to post some cow pictures to my flickr account this week? and then Clusterstock posts the following description (using cows) to explain the AIG collapse. LOL...

From Clusterstock:

"You have two cows.

John Paulson borrows one cow so he can sell it for $100. He gives you $10 as collateral.

You buy your neighbors cow for $100, which you finance by taking out a $90 loan from the bank and use John's $10 to make up the rest."
Read the rest of it here. Pretty funny!

1 comment:

vancouver realtor said...

I couldn't stop laughing and all the comments under that original article are almost as good as the explanation itself. It doesn't hurt to have a little laugh with this whole crisis, does it. Thanks.
Jay