Investment banking explains briefly.
" Chuck and its horse" or: " How the American financial system is working"
The young Chuck wants to become rich with its own Ranch. As beginning he buys a horse from a farmer. He hands over his whole 100 dollar to the farmer, he promises to supply to him a horse on the next day.
On the next day the farmer came by and told Chuck a bad message: " I'm sorry, but the animal died this night."
Chuck means: " No problem. Just give me my money back.
"I can´t" , the farmer replies. " I spend yesterday your 100 Dollars to buy fertilizers.
Chuck considers briefly. " Well, I´ll take the dead horse nevertheless"
" For what? " the farmer asks.
" I make a lottery" , Chuck explains to him.
" You can draw no dead horse by a lottery" the farmer is astonished.
But Chuck answers: " No problem! I don´t tell anyone that it is already dead… "
Months later Chuck and the farmer mets downtown. Chuck in fine lether shoes and a nice suit.
The farmer asks: " Chuck! How was it with drawing the horse cadaver by lotterie?! " -
" Fabulous" , Chuck answers. " I sold 500 lots each for 2 dollars and made my first 1000 dollar profit."
" … no complaints? " - " what´s about the winner"
Chuck says: " I just refund him his 2 Dollars..."
Today Chuck sells structured financial products at Goldman Sachs.
