Thursday, July 24, 2008

It's Funny, But It's Not









This morning on the news I heard a guy say that the current bank failures we're experiencing are collateral damage from the all the people who’ve defaulted on their home loans.


PREMISE1: The bank lends money to the people, against the value of a house

PREMISE2: The people default on the loan

PREMISE3: Same time, the value of the house drops below the outstanding balance on the defaulted loan


CONCLUSION: The bank's failure is collateral damage


Get it? Get it?!

2 comments:

Keith said...

The term "collateral damage" came from the US military - the same folks who brought us "friendly fire". Also very funny.

Anonymous said...

thanks for explaining to us why that is funny