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A Case study of economic crisis
It is a tough day for a hard working man, he was going to a market to sell 20 pigs that token him almost a full hard working year. On the way to the market, the sky was turning dark, and a raining was coming soon. At this difficult moment, a smoking farm appeared. This poor guy hurried up and approached it. As soon as he got there, he knocked the door quickly,. A lady responded and opened the door. The guy explained the situation and asked for a stay. The story started then as following.
Lady: Only myself in the home only, it seems not convenient.
Guy: Please help me once; I will give you a pig in return.
Lady: It sounds fair, but I just have one small bed.
Guy: Then, I will also stay on the bed, give you one pig more.
Lady: OK, let’s try.
On the mid-night, the guy said: the bed is small, may I stay above you. The lady said: “ No way!”
Guy: Two pigs more.
Lady: OK, but you can’t move anyway!
A little while: the guy can’t stand any more and begged to the lady for a moving. But got the some answer “No way!”.
Guy: one pig for a moving.
Lady: OK.
The guy moved up and down for 8 times then stopped.
Lady: “Why do you stop?”
Guy: “I have no pigs on hands”
The silent just kept for a little while, the lady said with a pitiful voice, “Can I give you a pig? ……”
On the next day morning, the guy led 30pigs ( including 10 pigs from the farm) to the market with a pretty good mood.
Comments from a Harvard professor: Finding the potential needs is crucial, developing client needs is necessary and it takes time and can be bored sometimes. Investment is needed and the introduction phase takes time.
The wonderful story spreading up very quick, one of the guy he wanted to try on the same way. When the door of the farm was opened, another story happened.
Lady: Only myself in the home only, it seems not convenient.
Guy: Please help me once; I will give you a pig in return.
Lady: It sounds fair, but I just have one small bed.
Guy: Then, I will also stay on the bed, give you one pig more.
Lady: OK, let’s try.
On the mid-night, the guy said: the bed is small, may I stay above you. The lady said: “No way!”
Guy: Two pigs more.
Lady: OK, but you can’t move anyway!
A little while: the guy can’t stand any more and begged to the lady for a moving. But got the some answer.
Guy: one pig for a moving.
Lady: OK.
The guy moved up and down for 7 times and stopped.
Lady: “Why do you stop?”
Guy: “It has finished”
On the next day morning, the guy led 2 pigs to the market with a very poor mood.
Comments from a Harvard professor: Every investment must be fit for the individual situation, cash flow broken is a crucial.
Another guy decides to try on this way, but he took a pill of Viagra.
Next day morning, he led 38 pigs (including 18 from the farm) to the market with a wonderful mood.
Comments from a Harvard professor: Financial support can help to achieve a unbelievable result.
Since more and more guys know this wonderful story. The Viagra supplying is getting tight, 2, even 3 pigs for a pill.
Comments from a Harvard professor: This is inflation!
Good biz always drives the price up, but when the price of Viagra soared to 16 pigs per pill.
The Harvard professor point out: it is the marginal cost! No one can earn margin except the guys they are over confident or over expected for future.
But the real world is that there are so many over confident or over expected people. The demand of Viagra was still strong. The company decides to extend the capacity, and issue a promotion scheme. As long as some one promise to stay one night in the farm, he can borrow the pigs and return it when he finished the deal in the farm.
This arrangement increased the Viagra sales extremely.
Comments from a Harvard professor: This is loaning, the can choose a loaning for the expecting future needs.
According to this concept, most of the Viagra franchise stores decide to loan Viagra to the guys they even have no pig on the hands. And the guys will pay it back when they finish the deal in the market.
Comments from a Harvard professor: This is the financial innovation! Expensing for future is a good idea for the economic.
As soon as this fantast news came out, the demands for Viagra increased quickly. Some financial companies established funds and bonds for this biz. And many sales agents of the bonds also enjoined the great benefit.
The Viagra biz was going so well, and the clients ware classified as 3 levels: 1. they have pigs on hands, 2. they have some pigs and borrowed the some pigs more from the companies. 3. They did not have pig at all, and borrowed all the pigs fro the companies.
Because the biz was so good, not only the Viagra Company earned a lot of money, but the bonds seller also earned a lot, and it is even better then the Viagra Company itself. So, many big money invested on the funds and did not care about how good is the Viagra’s biz going.
Comments from a Harvard professor: this is the professional operations; biz is from real operation upgraded to capital operation.
In case the biz failure, the fund companies bought the insurance from the insurance companies. And certainly, the insurance companies also earned a lot of money because of this great idea. And on the other way round, this also help the Viagra biz a lot.
Comments from a Harvard professor: This is risk hedge! And strategy alliances. It can increase the company’s ability of risk resistant and protect the consumers benefit at the end.
So many guys queued for the pigs exchanging, and at the end the lady said: “****! I can’t stand it any more!, I has to quit and move away from the farm!” and then, that is the really hard time for the guys they borrow Viagra and have no pigs on hand.
Comments from a Harvard professor: This is an independent case, it is in line with the normal market frustration volatility and doesn’t impact the whole market at all.
No matter how much call from the poor guys, the lady refused to return, many guys they borrowed the Viagra from the bond companies can’t pay it back any way. On the same time the bond companies said “How can we run the biz that based on 1Viagra for 16pigs without the lady support! And announced the bankrupt finally.
Comments from a Harvard professor: This is sub-prime crisis! But it won’t impact the whole financial sector.
Unfortunately, the insurance companies also can’t stand on that, and announced bankrupt as well.
Comments from a Harvard professor: This is financial crisis, but it won’t impact the real economic entities.
More and more people and companies bankrupted. Pigs consumption dropped sharply. No farm likes to rent pigs out. Pig’s market becomes weak and weaker.
Comments from a Harvard professor: Now is time for all the people in the country surfer the pain. They have to pay the bill for Viagra Company, the funds companies, and sales agents. Other wise, they will face a much bigger trouble.
In order to save the economic Viagra Company is going to borrow 700Bio pigs to keep the economic running. But the market was still weak. The game is going to be over.
Comments from a Harvard professor: Why don’t you do the supervisions in advance? Now the only way to get rip of this **** is to find some foreign pig’s to pay the bill!!! Otherwise all of us will be bankrupt!!!
It is a tough day for a hard working man, he was going to a market to sell 20 pigs that token him almost a full hard working year. On the way to the market, the sky was turning dark, and a raining was coming soon. At this difficult moment, a smoking farm appeared. This poor guy hurried up and approached it. As soon as he got there, he knocked the door quickly,. A lady responded and opened the door. The guy explained the situation and asked for a stay. The story started then as following.
Lady: Only myself in the home only, it seems not convenient.
Guy: Please help me once; I will give you a pig in return.
Lady: It sounds fair, but I just have one small bed.
Guy: Then, I will also stay on the bed, give you one pig more.
Lady: OK, let’s try.
On the mid-night, the guy said: the bed is small, may I stay above you. The lady said: “ No way!”
Guy: Two pigs more.
Lady: OK, but you can’t move anyway!
A little while: the guy can’t stand any more and begged to the lady for a moving. But got the some answer “No way!”.
Guy: one pig for a moving.
Lady: OK.
The guy moved up and down for 8 times then stopped.
Lady: “Why do you stop?”
Guy: “I have no pigs on hands”
The silent just kept for a little while, the lady said with a pitiful voice, “Can I give you a pig? ……”
On the next day morning, the guy led 30pigs ( including 10 pigs from the farm) to the market with a pretty good mood.
Comments from a Harvard professor: Finding the potential needs is crucial, developing client needs is necessary and it takes time and can be bored sometimes. Investment is needed and the introduction phase takes time.
The wonderful story spreading up very quick, one of the guy he wanted to try on the same way. When the door of the farm was opened, another story happened.
Lady: Only myself in the home only, it seems not convenient.
Guy: Please help me once; I will give you a pig in return.
Lady: It sounds fair, but I just have one small bed.
Guy: Then, I will also stay on the bed, give you one pig more.
Lady: OK, let’s try.
On the mid-night, the guy said: the bed is small, may I stay above you. The lady said: “No way!”
Guy: Two pigs more.
Lady: OK, but you can’t move anyway!
A little while: the guy can’t stand any more and begged to the lady for a moving. But got the some answer.
Guy: one pig for a moving.
Lady: OK.
The guy moved up and down for 7 times and stopped.
Lady: “Why do you stop?”
Guy: “It has finished”
On the next day morning, the guy led 2 pigs to the market with a very poor mood.
Comments from a Harvard professor: Every investment must be fit for the individual situation, cash flow broken is a crucial.
Another guy decides to try on this way, but he took a pill of Viagra.
Next day morning, he led 38 pigs (including 18 from the farm) to the market with a wonderful mood.
Comments from a Harvard professor: Financial support can help to achieve a unbelievable result.
Since more and more guys know this wonderful story. The Viagra supplying is getting tight, 2, even 3 pigs for a pill.
Comments from a Harvard professor: This is inflation!
Good biz always drives the price up, but when the price of Viagra soared to 16 pigs per pill.
The Harvard professor point out: it is the marginal cost! No one can earn margin except the guys they are over confident or over expected for future.
But the real world is that there are so many over confident or over expected people. The demand of Viagra was still strong. The company decides to extend the capacity, and issue a promotion scheme. As long as some one promise to stay one night in the farm, he can borrow the pigs and return it when he finished the deal in the farm.
This arrangement increased the Viagra sales extremely.
Comments from a Harvard professor: This is loaning, the can choose a loaning for the expecting future needs.
According to this concept, most of the Viagra franchise stores decide to loan Viagra to the guys they even have no pig on the hands. And the guys will pay it back when they finish the deal in the market.
Comments from a Harvard professor: This is the financial innovation! Expensing for future is a good idea for the economic.
As soon as this fantast news came out, the demands for Viagra increased quickly. Some financial companies established funds and bonds for this biz. And many sales agents of the bonds also enjoined the great benefit.
The Viagra biz was going so well, and the clients ware classified as 3 levels: 1. they have pigs on hands, 2. they have some pigs and borrowed the some pigs more from the companies. 3. They did not have pig at all, and borrowed all the pigs fro the companies.
Because the biz was so good, not only the Viagra Company earned a lot of money, but the bonds seller also earned a lot, and it is even better then the Viagra Company itself. So, many big money invested on the funds and did not care about how good is the Viagra’s biz going.
Comments from a Harvard professor: this is the professional operations; biz is from real operation upgraded to capital operation.
In case the biz failure, the fund companies bought the insurance from the insurance companies. And certainly, the insurance companies also earned a lot of money because of this great idea. And on the other way round, this also help the Viagra biz a lot.
Comments from a Harvard professor: This is risk hedge! And strategy alliances. It can increase the company’s ability of risk resistant and protect the consumers benefit at the end.
So many guys queued for the pigs exchanging, and at the end the lady said: “****! I can’t stand it any more!, I has to quit and move away from the farm!” and then, that is the really hard time for the guys they borrow Viagra and have no pigs on hand.
Comments from a Harvard professor: This is an independent case, it is in line with the normal market frustration volatility and doesn’t impact the whole market at all.
No matter how much call from the poor guys, the lady refused to return, many guys they borrowed the Viagra from the bond companies can’t pay it back any way. On the same time the bond companies said “How can we run the biz that based on 1Viagra for 16pigs without the lady support! And announced the bankrupt finally.
Comments from a Harvard professor: This is sub-prime crisis! But it won’t impact the whole financial sector.
Unfortunately, the insurance companies also can’t stand on that, and announced bankrupt as well.
Comments from a Harvard professor: This is financial crisis, but it won’t impact the real economic entities.
More and more people and companies bankrupted. Pigs consumption dropped sharply. No farm likes to rent pigs out. Pig’s market becomes weak and weaker.
Comments from a Harvard professor: Now is time for all the people in the country surfer the pain. They have to pay the bill for Viagra Company, the funds companies, and sales agents. Other wise, they will face a much bigger trouble.
In order to save the economic Viagra Company is going to borrow 700Bio pigs to keep the economic running. But the market was still weak. The game is going to be over.
Comments from a Harvard professor: Why don’t you do the supervisions in advance? Now the only way to get rip of this **** is to find some foreign pig’s to pay the bill!!! Otherwise all of us will be bankrupt!!!
CEO paying themselves millions of $ as bonuses at their company expenses
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