wish2bagain
Olympia, WA
age: 58
|
Monkey Business?
Once upon a time, in a place overrun with monkeys, 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, they became harder to catch, so the villagers
stopped their effort. The man then announced that he would now pay $20 for
each one. This renewed the efforts of the villagers and they started
catching monkeys again. But soon the supply diminished even further and they
were ever harder to catch, so people started going back to their farms and
forgot about monkey catching. The man increased his price to $25 each and
the supply of monkeys became so sparse that it was an effort to even see a
monkey, much less catch one. The man now announced that he would buy monkeys
for $50! However, since he had to go to the city on some business, his
assistant would now buy on his behalf.
While the man was away the assistant told the villagers, "Look at all these
monkeys in the big cage that the man has bought. I will sell them to you at
$35 each 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, and once again
there were monkeys everywhere.
Now you have a better understanding of how the stock market works.
|