Monday, November 03, 2008

Monkey and Wall Street

The following should help in understanding the current world financial situation.

Once upon a time in a village, a man announced to the villages that he would buy monkeys for $ 10 . The villagers seeing there were many monkeys around, went out to the forest and started catching them. The man brought thousands at $ 10.00, but as the supply started to diminish, the villagers stopped their efforts. The man further announced that he would now buy at $ 20. this renewed the efforts of the villagers and they started catching monkeys again.

Soon the supply diminished even further and people started going back to their farms. The offer rate increased to $ 25 and the supply of monkeys became so little that it was an effort to see e monkey, let alone catch it.

The man now announced that he would buy monkeys at $ 50! However, since he had to go to the city on some business, his assistant would act as buyer, on his behalf.

In the absence of the man, the assistant told the villagers: ' Look at all these monkeys in the big cage that the man has collected. I will sell them to you at $ 35 and then when he returns from the city, you can sell them back to him for $ 50.'

The villagers squeezed together their savings and bought all the monkeys.

Then they never saw the man or his assistant again, only monkeys everywhere!.

Welcome to WALL STREET.

1 comment:

ஆளவந்தான் said...

Hey ILA,

I have read this same story in kumudam. I believe PAMARAN wrote that article. Nice to understand the STOCK market


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