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It’s very easy to get confused on how we got into this mess. I got this from a friend and I thought it helped explain our current economic state such that anyone over about 16 years old should be able to understand it. This doesn’t squarely place blame. That’s not what this is about. You can draw your own conclusions on who is at fault. If, after reading this, you still don’t understand. Don’t worry about it. You’re a liberal and always will be.  Read on.
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Heidi is the proprietor of a bar. In order to increase sales, she
decides to allow her loyal customers – most of whom are unemployed
alcoholics – to drink now but pay later. She keeps track of the drinks
consumed in a ledger (thereby granting the customers loans).

Word gets around and as a result increasing numbers of customers flood into
Heidi’s bar.

Taking advantage of her customers’ freedom from immediate payment
constraints, Heidi increases her prices for wine and beer, the most-consumed
beverages. Her sales volume increases massively.

A young and dynamic customer service consultant at the local bank recognizes
these customer debts as valuable future assets and increases Heidi’s
borrowing limit.

He sees no reason for undue concern since he has the debts of the alcoholics
as collateral.

At the bank’s corporate headquarters, expert bankers transform these
customer assets into DRINKBONDS, ALKBONDS and PUKEBONDS. These securities
are then traded on markets worldwide. No one really understands what these
abbreviations mean and how the securities are guaranteed. Nevertheless, as
their prices continuously climb, the securities become top-selling items.

One day, although the prices are still climbing, a risk manager of the bank
(subsequently fired for his negativity) decides that the time has come to
demand payment of the debts incurred by the drinkers at Heidi’s bar.

However they cannot pay back the debts.

Heidi cannot fulfill her loan obligations and claims bankruptcy.

DRINKBOND and ALKBOND drop in price by 95%. PUKEBOND performs better,
stabilizing in price after dropping by 80%.

The suppliers of Heidi’s bar, having granted her generous payment due dates
and having invested in the securities are faced with a new situation. Her
wine supplier claims bankruptcy, her beer supplier is taken over by a
competitor.

The bank is saved by the Government following dramatic round-the-clock
consultations by leaders from the governing political parties.

The funds required for the purpose of saving the bank are obtained by a tax levied on the
non-drinkers.

Finally an explanation we can understand…