A young man named Donald bought a horse from a farmer for $250. The farmer agreed to deliver the horse the next day.
The next day, the farmer drove up to Donald’s house and said, “Sorry son, but I have some bad news, the horse died.”
Donald replied, “Well, then just give me my money back.”
The farmer said, “Can’t do that. I went and spent it already.”
Donald said, “Ok, then, just bring me the dead horse.”
The farmer asked, “What ya gonna do with him?
Donald said, “I’m going to raffle him off.”
The farmer said, “You can’t raffle off a dead horse!”
Donald said, “Sure I can, Watch me. I just won’t tell anybody he’s dead.”
A month Later, the farmer met up with Donald and asked, “What happened with that dead horse?”
Donald said, “I raffled him off. I sold 500 tickets at five dollars a piece and made a profit of $2245.00
The farmer said, “Didn’t anyone complain?”
Donald said, “Just the guy who won. So I gave him his five dollars back.”
Donald is now in the Whitehouse!
Pretty sure there was a bankruptcy in there somewhere as well.
ReplyDeletethat is pretty much what the collateralized debt obligation market is.
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