Heidi is the owner of a shabby bar in a poor district of Berlin. To survive he has to increase sales, then decides to offer to customers, mostly drunk wastrel, the possibility of drinking to taking credit, with Teutonic precision, a tidy notebook of accounts. In practice allows customers to subprime mortgage.
The news spread, several of our customers old and new generation flock to the bar of Heidi and sales explode. Taking advantage of the freedom given to customers to pay with a comfortable, Heidi increases the prices of wine and beer, the most widely consumed beverages and profits grow vertically. A young and dynamic consultant to a local bank, attracted by the development of the bar, he decides that the debts of the regulars are a further guarantee for Heidi, and strongly recommends the extension of banking facilities for the year.
the direction of central bank experts rockets finance, returning from an internship at the Faculty of Economics, University of Chicago, take the opportunity to practice new theories just studied. This made the assets of Heidi, that the debts of the happy customers are converted into synthetic Ros-sobond, and Biancobond Birrabond, just equations, split, pulverized and placed in the vast sea of \u200b\u200bthe global financial system. No one understands exactly what the names mean, let alone how to guarantee the bonds. But who cares, the market 'pull', commissions are generous, prices go up and sales are great.
One fine day, although bond prices are on the rise, an obscure official in the department credit-bank model (later fired for defeatist pessimism) decides it's time to ask at least a portion of the payment due from contract drinkers at the bar of Heidi.
Obviously, no one customer can pay those sums demanded suddenly and with so improvident rude imposition. As a result, even Heidi unfortunately can repay their debt to the bank and declare bankruptcy. After that, the Red-bond and Biancobond collapse of 95%, while Birrabond, with superior performance, losing only 80%. Heidi providers that recommended by same institute not only accept payments in arrears but were also invested in these bonds are on the brink of the abyss. The provider fails wine and the beer is detected at no cost by a competitor. The bank, however, is saved by the government after a hectic round of consultations with leaders of several political parties in the majority and opposition. The government released funds for the rescue operation are then found through a new tax paid by the people of the abstainers. Crazy story? Not so, the profile of the test case is excellent.
The sequence of domino effects is unknown. The collapse of the financial system generates a series of pile- chain identical to that of the first fog on the highway. The first nail in front of the wall of fog, the latter manages to stop just in time, but it happens behind the mayhem. Durable goods are financed to purchase the first victims of the chaos. Sales of new cars suffer contractions unsustainable, as the earliest American market where people buy a car in cash is almost unknown. Ford's ill, collapses Chrysler and General Motors have to resort to deep amputations to prevent the spread of gangrene. Blame finance? Not exactly, is the inexperience of management accountancy slaves of myopia that currently dominates the boards.
