Financial Crisis

This post by Zyed from the blog, "Healing Iraq," describes better than any explaination yet the basic problem with the "Daddy Warbucks" deregulated, privitized banking system.
Wednesday, October 15, 2008
"I wanted to share a funny email I received this morning (translated from Arabic):A financial expert was asked to explain in simple layman's terms the reasons behind the recent stock market crash. He thought for a while and said: “A man traveled to a far away village and offered its inhabitants to buy every single donkey they owned for $10. Many villagers rushed to sell him their donkeys. The next day he raised the price to $15, and even more villagers sold their donkeys. Later he raised the price to $30, and the villagers sold until they all ran out of donkeys. Then he said, ‘I will pay $50 for every single donkey,’ and he went to spend the weekend in the city. The man’s assistant visited the village the next day and offered to sell back the villagers’ donkeys for $40 each, provided they sell them back to his master for $50 each on Monday. The villagers went into all their savings in order to buy back their donkeys. Those who did not own anything rushed to borrow from their neighbours, hoping to make a quick profit. They never saw the man or his assistant again. When the next week arrived, there were only two things left in the village: debts and donkeys.”
# posted by Zeyad : 10/15/2008 10:04:00 PM