THE CURRENT ECONOMIC CRISIS EXPLAINED

     THE CURRENT ECONOMIC CRISIS EXPLAINED

Recession is something which is not explained and is just understood but there are several people who cannot understand how the current economic crisis have started and no one have ever explained them. This is how the economic crisis started and ended. Its not real but this is a fictional story made to expalin it in a special hyderabad local way which is like a story so that you people can understand!! Enjoy!!

Khaja Bhai is the proprietor of a Nehari Shop in Hyderabad.

Sales are low and, in order to increase them, he comes up with a plan

to allow his customers to eat now and pay later. He keeps track of the

meals consumed on a ledger.

Word gets around and as a result increasing numbers of customers flock

to Khaja Bhai’s Hotel.

Khaja Bhai's suppliers are delighted and are very willing

to sell more and more raw materials for the meals he prepares.

Khaja Bhai shows them his ledger of receivables and they extend him

credit.

A young and dynamic customer service consultant at the local bank

recognizes these customer debts as valuable future assets and gives

Khaja Bhai a credit line and then increases his borrowing limit.

Taking advantage of his customers' freedom from immediate payment

constraints, Khaja jacks up the prices of his Nehari, Kulche, Jabde, Paaye

and Zabaan.

Customers don't mind as they are not required to pay on the spot anyway.

Sales volume increases massively, Banks and suppliers lend more; Khaja

Bhai opens more outlets. He sees no reason for undue concern since he

has the debts of the customers as collateral.

At the bank's corporate headquarters, expert bankers recognize Khaja's

customer loans as assets and transform these into

BONDS. These negotiable instruments are given exotic names such as

JABDA BOND, PAAYA BOND, ZABAAN BOND AND KULCHA BOND. 

These securities are then listed on the Stock Exchange and traded on

markets worldwide. No one really understands what the names mean

and how the securities are guaranteed, but, nevertheless, as their prices

continuously climb, the securities become top-selling items.

One day, although the prices are still climbing, a credit risk manager

of the bank decides that the time has come to demand payment of one of

the debts incurred by Khaja Bhai.

Khaja in turn asks his clients to pay up.

One by one they refuse; the clients cannot pay back the debts. Khaja Bhai

refuses to serve them any more. The clients stop coming. 

 is really screwed now. He cannot fulfill his loan obligations

and therefore claims bankruptcy. All Bonds drop in price by between 80

to 95%. 

The suppliers of Khaja, having granted generous payment due dates and

having invested in the securities are faced with similar problems. The

Meat Supplier defaults on payment to the Cattle Supplier and

claims bankruptcy. The Kulche Ka Aata supplier is taken over by a

competitor; Khaja lays off the cook and staff.

Bankruptcies soar, unemployment mushrooms. 

The bank that lent the money in the first place is set to collapse. It

is later saved by the Government following dramatic round-the-clock

consultations by leaders from the governing political parties with

Khaja Bhai commuting back and forth in his Executive Jet and Mercedes

500SEL, brokering the deal.

The funds required to save the economic collapse are obtained by a tax

levied on the common citizens,

Most Of Whom, Do Not Eat No Nehari No Zabaan No

Sirey No Paye...!!!

 

 

GOLMAAL KI JAI HO...!!!

HOPE YOU UNDERSTOOD...???

;))))))))