Someone said I should attempt more humorous posts. I considered finding two actors to play out this scene and upload it to YouTube.
CEO: I'd like to borrow $1B.
Banker: No problem. Here you go.
CEO (takes out cellphone): We got another round of financing. I'd like to invest $1B on black. (pause) 16 red! Oh well.
CEO (to banker): I'd like to borrow $2B.
Banker: What about the $1B I just lent you?
CEO: We're having liquidity problems.
Banker: No problem. Here you go.
CEO (on cellphone): Let's invest $2B on black this time. (pause) 3 red! Better luck next time.
CEO (to banker): I'd like to borrow $4B.
Banker: Are you sure this is a good idea?
CEO: If you don't lend me another $4B, you're in the **** as much as me.
Banker: That's a good point. Here you go.
CEO (on cellphone): Let's invest another $4B on black. (pause) #$%^! 36 red! Time for more financing.
CEO: I need to borrow another $8B.
Banker: I have to ask you to change your business strategy.
CEO: No problem. Do we have a deal?
Banker: Here's your $8B.
CEO (on cellphone): It's time for another strategy. This time, $8B on red. (pause) 15 black!
CEO: This time it was your fault.
Banker: My apologies, sir. Here's another $16B.
CEO (on cellphone): Let's go back to our core business strategy. $16B on black. (pause) 00!
CEO: Time for another round of financing. This time, I need $32B.
Banker: Here you go.
CEO (on cellphone): $32B on black. (pause) 00 again! Time to raise another $64B!
Banker: It's time for you to overhaul your business model.
CEO: I agree. Where's my $64B?
Banker: Here it is.
CEO (on cellphone): Time for a new business model. Invest $64B on "pass". Snake eyes! Oh well.
CEO: I need another $128B.
Banker: Here's your $128B.
CEO (on cellphone): $128 on "pass". Seven! A winner!
CEO: Here's your $255B back, plus a $100M commission, leaving $900M in profit for me.
Banker: It was a pleasure doing business with you. Same time tomorrow?
CEO: See you tomorrow.
(CEO exits)
Borrower: I'm having trouble paying my mortgage. I lost my job and my adjustable-rate mortgage caused my payment to increase. I need to borrow $300,000 to refinance.
Banker: What? How dare you!? The insolence! Do you think I'm made out of money? GET OUT!
(The borrower is Tasered and dragged out by security guards.)
Wednesday, July 16, 2008
FRE and FNM Business Model Illustrated
Posted by FSK at 12:00 PM
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1 comment:
The CEO's excuses: "liquidity problems"... "this time it was your fault"... LOL
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