The Greek Bailout Package Explained

Posted on July 31, 2015 by Cape Rebel


It is a slow day in a little Greek village. Rain is beating down and the streets are deserted.

Times are tough; everybody is in debt; everyone lives on credit.

On this particular day a rich German tourist drives through the village, stops at a local hotel and places a €100 note on the desk, telling the hotel proprietor that he wishes to inspect the upstairs rooms to select one in which he might spend the night.

The proprietor hands him several sets of keys and, as soon as the rich German tourist has turned around to proceed upstairs, the hotelier grabs the €100 note and runs next door to pay his debt to the butcher.

The butcher takes the €100 note and runs down the street to repay his debt to the pig farmer.

The pig farmer takes the €100 note and heads off to pay his bill at the Farmers’ Co-op.

The clerk at the Farmers’ Co-op takes the €100 note and runs to pay his drinks bill at the taverna.

The publican at the taverna slips the money to the local prostitute drinking at the bar, who has also been facing hard times and has had to offer him services on credit.

The prostitute rushes to the hotel and pays her hotel bill with the €100 note.

The hotel proprietor then replaces the €100 note on the counter, exactly where the rich German tourist left it.

Moments later the rich German tourist comes downstairs, picks up the €100 note, and states that he finds the rooms unsatisfactory. He pockets his money, and drives out of town.

No one has produced anything.

No one has earned anything.

However, the whole village is now out of debt, and views the future with greater optimism.

That is how the Greek bailout package works.

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