STOCK MARKET MONKEYS

For those of you who have difficulty understanding the

> current world

> financial crisis and how it evolved, the following should

> help…

> 

> 

> Once upon a time in a village in China, a man announced to

> the villagers

> 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 bought thousands at $10, 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 

> even see 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 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 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.

> 

> They never saw the man or his assistant again, only now the

> monkeys were

> everywhere!

> 

> Welcome to WALL STREET.

>