09 October 2008, 02:08
YUMANMONKEYS
"Once upon a time, in a village, a man appeared and announced to the
>> villagers that he would buy monkeys for $10 each.
>>
>> The villagers, seeing that there were many monkeys around, went out to
>> the forest and started catching them. The man bought thousands at $10
>> and, as supply started to diminish, the villagers stopped their effort.
>> He further announced that he would now buy at $20 for a monkey.
>>
>> 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 increased to $25 each, and
>> the supply of monkeys became so small that it was an effort to even find
>> a 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 now buy on
>> behalf of him.
>>
>> 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 when the man returns from the city,
>> you can sell them to him for $50 each." The villagers rounded up all
>> their savings and bought all the monkeys.
>>
>> They never saw the man nor his assistant again !
>> Now you have a better understanding of how the stock market works."
>>
>>
09 October 2008, 08:26
Bobby TomekThat certainly rings true in so many circles...
