Libur

14Oct08

Just in case, this is not by me, got from a mailing list.

If you have difficulty understanding the current world financial
situation, the following should help

Once upon a time in a village in India, 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. Then they never saw the man or his assistant again, only
monkeys everywhere!

Welcome to WALL STREET!

And another one to understand inflation.

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