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Sweetiipie

The Global Financial Crisis

10 posts in this topic

Tamedu is the proprietor of a Foo-Foo and Isi-Ewu Shop (Exotic Nigerian food) in Lagos, Nigeria.

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 Tamedu's shop. His

suppliers are delighted and are very willing to sell more and more raw materials

for the meals he prepares. Tamedu shows them his ledger of receivables and they

extend him credit.

A young and dynamic customer service consultant at the local Nairaland bank

recognizes these customer debts as valuable future assets and gives

Tamedu a credit line and then increases Tamedu's borrowing limit. Taking advantage of his

customers' freedom from immediate payment constraints, Tamedu jacks up the

prices of his Foo-Foo and Isi-Ewu. Customers don't mind as they are not required

to pay on the spot. Sales volume increases massively; Banks and suppliers lend

more; Tamedu opens more outlets in Abuja, Kaduna, Port Harcourt and Ibadan. 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

Tamedu's customer loans as assets and transform these customer assets into Bonds.

These negotiable instruments are given exotic names such as FoofooBond, IsiBond,

EwuBond AND EgusiBond. 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 Nairaland bank decides that the time

has come to demand payment of one of the debts incurred by Tamedu. Tamedu in turn

asks his clients to pay up. One by one they refuse; the clients cannot pay back

the debts. Tamedu refuses to serve them anymore. The clients stop coming. Tamedu

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 Tamedu, having granted generous payment due dates and having invested in the

securities are faced with similar problems. The goat-meat supplier defaults on payment to the

Mallam who sells goats to him and to the cattle supplier and claims bankruptcy.

The yam supplier is taken over by a competitor; Tamedu lays off the cook and staff.

Bankruptcies soar, unemployment mushrooms.

The Nairaland bank that lent the money in the first place is set to collapse. It is saved by the Government

following dramatic round-the-clock consultations by leaders from the Peoples

Undemocratic Party with Tamedu 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 citizens,

most of whom do not eat Foo-Foo or Isi-Ewu.

"THIS IS HOW THE GLOBAL FINANCIAL CRISIS ERUPTED"

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Brilliant !!

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Brilliant !!

COULDN'T AGREE MORE

Hi Forum Admin, I have just noticed that an article of mine on the GLobal FInancial Crisis has been posted on your blog without attribution to the author. http://www.ghanacommunity.com/forums/index...mp;#entry168347 I am the original author of this article and would appreciate if this is kindly aknowledged.

http://idrisayobello.blogspot.com/

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Hello Aloma,

Welcome to Ghana community. I noticed you refered to this forum as a blog. This is a forum where registered members post whatever they want within reason.

In forums, not every post is correctly accredited to the original author. If you take the time to scroll through our threads U will find some where the original source is mentioned and others where there is nothing. Show me a Naija forum where everything posted is acknowledged or the source given.

No moderator has the time, the energy and the desire to go looking for the source of every post that is made here. This is the internet, stuff gets circulated so take a chill pill.

U admit yourself that when U first circulated this article via email " ... I sent out the article via email to several friends, sent it for publication in some Nigerian dailies and also posted it on some online blogs." taken from http://idrisayobello.blogspot.com/

Trust me, those intitial emails would have circulated around the world without most readers knowing who the original author of the article was.

Thanks for drawing our attention to the fact that that you wrote the piece. Well done!!! It is intelligent, witty and breaks down things beautifully. Have U tried send it to a newspaper, or magazine or any publication that will pay you for such a well targetted article ?

Bula matali

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"A month later, I have seen the article make its way through blogosphere and mailing groups, and while I am happy at the fact that most people have enjoyed it, in most of these forms, its no longer properly attributed, and its authorship is not acknowledged."

Let me quote where I got it from before Aloma comes and whips me with his big stick. Ladies and Gentleman the above quote was extracted from http://idrisayobello.blogspot.com/ at 5.58 PM Geneva Time on Monday 11th May, 2009.

I feel your pain, Aloma, but I think U are crying over spilt milk. This the Internet...things are just going to spread with no acknowledgement to the original authors....

if you don't want it spread, don't put it on the net.

Sweetiipie, where did U get this piece from ?

Edited by Bula Matali

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Ok, Enough of the venting from me :partytime2: .

I guess what happened was I was too busy to start a blog, but now I finally did.

Add you did make avalid point, this is a forum, not a blog.

Actually sent it to a couple of Nigerian newspapers. Not interested in the pecuniary oucomes though.

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welcome again aloma. Post some more of your brilliant writing and we will jist with U... enjoy the forum but be careful 'cos there are some insane people out there....

One of them is called

Bula Matali

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"A month later, I have seen the article make its way through blogosphere and mailing groups, and while I am happy at the fact that most people have enjoyed it, in most of these forms, its no longer properly attributed, and its authorship is not acknowledged."

Let me quote where I got it from before Aloma comes and whips me with his big stick. Ladies and Gentleman the above quote was extracted from http://idrisayobello.blogspot.com/ at 5.58 PM Geneva Time on Monday 11th May, 2009.

I feel your pain, Aloma, but I think U are crying over spilt milk. This the Internet...things are just going to spread with no acknowledgement to the original authors....

if you don't want it spread, don't put it on the net.

Sweetiipie, where did U get this piece from ?

I received it as an email from my boss actually..just like a lot of the jokes and stuff i post...like u said if Aloma didn't want it to be circulated he shdn't have sent it as an email to so many pple..

Sent: Monday, May 04, 2009 9:59 AMSubject: Fw: Genesis Of The Financial Crisis - naija style

An interesting piece from a former classmate - Alfred Accam who works with Chevron - U.K. Enjoy your reading and regards.

Edem

Edited by Sweetiipie

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