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Functional Area : Global Business
Activity:  10 comments  328 views  last activity : 07 06 2010 20:18:04 +0000
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                                          Economic recovery ?

It is a slow day in the small Essex town and streets are deserted.

Times are tough, everybody is in debt, and everybody is living on credit.

A rich tourist visiting the area drives through town, stops at the hotel, and lays a £50 note on the desk saying he wants to inspect the rooms upstairs to pick one for the night.

As soon as he walks upstairs, the hotel owner grabs the note and runs next door to pay his debt to the butcher.

The butcher takes the £50 and runs down the street to retire his debt to the pig farmer.

The pig farmer takes the £50 and heads off to pay his bill to his supplier, the Farmer's Co-op.

The guy at the Farmer's Co-op takes the £50 and runs to pay his debt to the local prostitute, who has also been facing hard times and has had to offer her "services" on credit.

The hooker rushes to the hotel and pays off her room bill with the hotel owner.

The hotel proprietor then places the £50 back on the counter so the rich traveller will not suspect anything.

At that moment the traveller comes down the stairs, states that the rooms are not satisfactory, picks up the £50 note and leaves town.

No one produced anything. No one earned anything...

However, the whole town is now out of debt and now looks to the future with a lot more optimism.

And that, ladies and gentlemen, is economic recovery.

 Top Comment : akshaya bhatia   | 05 27 2010 16:57:49 +0000
A very interesting post. A remarkable cyclic recovery. Thanks for reference, Veejay.
 
10 comments on "Economic Recovery"
  Commented by  Moparthi Sai Ramya Sree, Software Developer, vignan university    | 06 04 2010 07:23:18 +0000
Rating : +1 
good presentation large story is covered  in a small and very effective way to understand
  Commented by  Aditya Sharma, Insurance Advisor/Analyst, HDFCSLIC, ICICI LOMBARD    | 06 04 2010 06:39:38 +0000
Rating : +1 
A small and  interesting way to the economic recovery. Good presentation Veejay Ji,
  Commented by  Vipin Bhasin, Private Equity/Hedge Fund/VC-Manager, Indian Investment Co.    | 05 29 2010 06:56:31 +0000
Rating : +1 
A small but great example given here which is showing the imbalance between debt and earnings called as economic recession and how to overcome through sufficient bailout package.........
  Commented by  Priya Varadan, Independent consultant, Self employed    | 05 28 2010 08:12:33 +0000
Rating : +1 
I Like it,  good one indeed... Thanks
  Commented by  Mathew Cherian, Research Associate/Analyst, Western Michigan University    | 05 28 2010 07:37:15 +0000
Rating : +1 
Veejay, this looks like a rerun. Now the town is added. Thanks.
  Commented by  Nem Singh, Consultant, Consultancy Firm    | 05 28 2010 06:46:24 +0000
Rating : +1 
Its a cycle of the economy till the time circulation there is no problem. When it blocks by one then it create a problem and block the economy. 
  Commented by  Krunal Kothari, Business Development, GLOBAL EXIM    | 05 28 2010 06:20:39 +0000
Rating : +1 
Very good story. This is how the actual "BUBBLE" is generated. & this is how its breaks. Very nice explanation to it.

  Commented by  Neelima Pandey, PR & Media Relations Manager, Group M    | 05 28 2010 05:14:33 +0000
Rating : +1 
Nice post Mr. Veejay....great recovery pattern shown by you, and for the matter of fact thats the way the real economy also got recovered lately :P
  Commented by  Nitin M Aras, Head/VP/GM-Tech. Support, Wintech Taparia Limited    | 05 27 2010 18:31:28 +0000
Rating : +1 
Good one Veejay ....the world is round and small ... also free of debt ... thats the life
  Commented by  akshaya bhatia, Program Manager, fsl    | 05 27 2010 16:57:49 +0000
Rating : +1 
A very interesting post. A remarkable cyclic recovery. Thanks for reference, Veejay.
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