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, took out loans and borrowed from
the banks and bought all the monkeys.
They never saw the man nor his assistant again, only monkeys everywhere!
Now you have a better understanding of how the stock market works.!!!!!
PS. The last capitalist we hang shall be the one who sold us the rope.
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, took out loans and borrowed from
the banks and bought all the monkeys.
They never saw the man nor his assistant again, only monkeys everywhere!
Now you have a better understanding of how the stock market works.!!!!!
PS. The last capitalist we hang shall be the one who sold us the rope.
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