Here is an explanation for our current financial crisis
that I can understand.

The Wine and Beer Financial Crisis Explained in Simple Terms.

Sandra is the landlord of a bar in Gateshead. To increase sales, she decides to allow her regulars - most of whom are unemployed alcoholics - to drink now and pay later. She keeps track of the drinks consumed on the customers 'slate' (in effect granting the regulars each a loan).

Word spreads and an increasing number of drinkers visit Sandra's bar. The number and value of these 'slates' increase incrementally.

Taking full advantage of her new customers freedom from the requirement of paying for their drinks, Sandra increases her prices for wine and beer, the most popular drinks. Her sales volume increases exponentially.

A young assistant manager at Sandra's bank recognizes these customer debts as valuable assets and increases Sandra's overdraft. He has no reason for concern as he has the 'slates' of the alcoholics as collateral.

At the bank's HQ, experts transform these customer assets into DRINKBONDS, SUPBONDS and SIPBONDS. These securities are traded on worldwide markets. No one understands what these abbreviations mean or how they are guaranteed. Nevertheless, as their prices soar, the securities become best sellers.

One day, although the prices are gaining in value, a risk assessment manager (subsequently fired due to his negativity) at the bank's HQ decides that the time has come to demand payment of the 'slates' incurred by the drinkers at Sandra's bar. However they cannot pay off their 'slates' as they are all unemployed alcoholics.

Sandra cannot payoff her overdraft and goes into liquidation.

DRINKBOND and SUPBOND lose 97% of their value overnight.
SIPBOND fairs better, losing only 83% of their value.

The Sandra's suppliers, having allowed her lengthy payment terms and having invested in these securities themselves, are faced with a dire situation. Her wine supplier goes into liquidation and her beer supplier is taken over by a competitor. The Government saves the bank, using taxpayers' money, following consultations with leaders from the major political parties.

The funds required for this 'bailout' are obtained by a tax levied on non-drinkers.