4 ms·
This isn't a joke. It's a parable about the velocity of money. ;-)
by auntienomen 8y ago
This isn't a joke. It's a parable about the velocity of money. ;-)
- nordsieck 8y agoThis has very little to do with the velocity of money. It's a lesson on the benefits of the securitization of debt. If people could have traded their debt, they could have zeroed out the whole thing without the Germans. Honestly, there isn't that much benefit from this story. Everyone in the story went from a net $0 net worth to a net $0 net worth. I'm sure clearing debts (or credits, depending on your perspective), from the books does benefit people, particularly psychologically, but the idea that everyone became massively better off is pretty silly.
- lolc 8y agoUnless you are paying a third party for the debt.