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  • #16
    Here ya go. Take two

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    • #17
      another simpler scenario is that the 10th man is a banker, and is good friends with politicians and federal reserve bankers alike. They all agree that the best thing for the economy is if everyone owns a few cases of beer. They decide to give out loans for the other 9 men so they too can have the american dream of owning a few cases of beer.

      The politicians of course do their part and shuttle the american herd into the ranks of the 2caseofbeerowning..it is clear to every one that everyone deserves, a case of beer that they can call their own, not one given to them or borrowed from someone with 4 casesofbeer but their very own! Caseofbeer ownership is what makes the country great.

      The banker comes through just as the politicians said and gets everyone in the caseofbeer that is right for them. Because he is a "civic minded" man he makes sure that the politicians friends err..or rather colleagues who are also civic minded are well represented in the banking industry as well as public-private partnerships.

      The banker has other great friends that serve on his board of trustees, lawyers, accountants and others still more that serve on his own independent compensation board and while they are drinking some vintage merlot in at retreat in the alps, they recognize that the banker is doing such a marvelous job of getting these loans out to the 9 guys at that bar they decide that the banker will get the first of ten 50million dollar bonuses this year as a small token for what the the banker is doing for the economy. His wonderful work of making the politicians dream come true of a caseofbeer ownership is finally being realized.

      The banker recognizes the good heartedness and civic mindedness of the politicians and looks forward to hearing the executive politician on the lecture circuit. He tells his friends that a politician of that caliber is worth at least 1million dollars for a speech on free trade and probably more for a speech on private public partnerships or the spread of democracy.

      As more and more people heed the siren call of the political class about caseofbeer ownership the price of those cases continues to skyrocket, beer producers are doing marvelously and recognizing their "civic responsibility" they "give back to the community" by donating campaign dollars to keep good politicians in office.

      As the price of beer skyrockets, the loans must get bigger and bigger so everyone can have what everyone deserves, a casesofbeer. The total amount of loans goes up dramatically and the compensation committee at the bank recognizes the banker for all the "economic growth" he is stimulating and doubles his compensation. Unfortunately and soon the paper loans that were earning the banker 50million a year in compensation start to show their worth as the people who bought them start to discover, after taking a pause from drinking, the intrinsic worth of a caseofbeer. The banker knew this was coming and ensures through his lawyer and accountant friends, that his 10x 50million is moved far far away from that bank. He will need that because he want to have enough cash to pay for those wonderful speeches that the politician promised when he leaves office.

      Well the 9 guys at the bar stop paying their loans on the caseofbeer as the worth of that case plummets. Some because they lost their jobs, some because they dont want to pay so much for something worth so little. The bank quicky sinks and becomes insolvent by much more than 10x50million.

      The politicians are furious and bring the banker in so that the 9 guys can see that they are mad as hell at the banker. The pols tell the banker that they are furious with him, that they cant believe that he gave himself that much compensation for running the bank into the ground.

      The banker assures the pols that the compensation committee takes the issue of compensation very seriously and uses the industry average as guidance. He ( almost winks, but realizes the old adage why act when you can speak, why speak when you can wink and why wink when you can node, ..) nodes and says that he will be certain that the pols committee has access to the 47 volumes of reference material from the compensation committee. The pols are still furious at the situation and begin to discuss how they can INFUSE cash into the bank system so that this never happens again.

      The pol finishes with a steaming but ironically ultimately heartwarming speech that begins to move the population towards greater confidence in the banking system. The banker realizes that there is alot to learn here and looks forward to ensuring many insightful speeches are brought to the banking industry retreats when all the dust settles.
      ... nothing really ever changes my friend, new lines for old, new lines for old.

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      • #18
        Well, yeah.. you guys are giving this too much thought... I don't even drink beer.

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        • #19
          Beer is the necter of the Gods and therefor a birth right for every human. :P :arrow: :lol:
          phsstt!

          Comment


          • #20
            I neglected one last thing:

            Final Tally:

            9 X 50 million guys pay $10k
            1 x 1000 bankers get over 50million each.

            and I still agree with lonewolf's original post from GA.
            ... nothing really ever changes my friend, new lines for old, new lines for old.

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            • #21
              except that the "author" from GA disavows having written it (see Snopes link)

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              • #22
                Originally posted by lonewolf
                Just as the man said: no explanation necessary
                That is the problem. This thought experiment is an over-simplification. The tax code is far too complicated. It would be nice if it were this simple, but tax accountants and government employees that work for the IRS need jobs.

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                • #23
                  The fact that both the rich and the poor think it unfair means it's about right. The middle class just complies.

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                  • #24
                    Originally posted by Marlow
                    The middle class just complies.
                    Unless they are subject to AMT

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                    • #25
                      The far left hates the rich, the far right hates the poor....me? I hate everyone! :P
                      phsstt!

                      Comment


                      • #26
                        Originally posted by SQUACKEE
                        The far left hates the rich, the far right hates the poor....me? I hate everyone! :P
                        If the super rich hate being taxed so much why don't they get one of the more cushy lower paying jobs? For example, they could be living and working easy on a teachers salary.

                        Comment


                        • #27
                          Originally posted by Daisy
                          Originally posted by SQUACKEE
                          The far left hates the rich, the far right hates the poor....me? I hate everyone! :P
                          If the rich hate being taxed so much why don't they get one of the more cushy low paying jobs?
                          Yes, reminds me of this question, How did all our oil get under the middle east sand?
                          phsstt!

                          Comment


                          • #28
                            Originally posted by Daisy
                            For example, they could be living and working easy on a teachers salary.
                            Doubly funny!

                            Comment


                            • #29
                              Originally posted by Marlow
                              Originally posted by Daisy
                              For example, they could be living and working easy on a teachers salary.
                              Doubly funny!
                              I knew you'd appreciate it! As they say: For those who understand, no explanation is needed. For those who do not understand, no explanation is possible. :twisted:

                              Comment


                              • #30
                                Originally posted by SQUACKEE
                                [
                                Yes, reminds me of this question, How did all our oil get under the middle east sand?
                                Well, Squack, not all of our oil is under the Middle East sands. Some of it Mother Nature hid under thousands of feet of sea water, some in artic climes, some in remote jungles. We have pretty well looked in the easy places with known or postulated probability/possibility of oil/gas production.

                                I would love to explain this disproportionate concentration of oil reserves to you but I am an old man and I am concerned I might kick off half way through your junior year of geology and leave you still frustrated by the mysteries of the global distribution of oil/gas.

                                Suffice it to say the answer is complex. It involves the geologic history of stratigraphic deposition, reservoir rocks adjacent to source rocks, unusually humongous reef traps and structural traps related to continental drift.

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