Author Topic: Monkey Money  (Read 372 times)

0 Members and 2 Guests are viewing this topic.

Offline dodd3

  • Trade Count: (1)
  • Senior Member
  • *****
  • Posts: 1004
  • Gender: Male
Monkey Money
« on: October 09, 2008, 01:39:10 AM »
Monkey Money

"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."
bernie  ;)
if its feral its in peril

Offline SHOOTALL

  • Trade Count: (0)
  • Senior Member
  • *****
  • Posts: 23836
Re: Monkey Money
« Reply #1 on: October 09, 2008, 02:50:32 AM »
CUTE !
But you neglected competition and off shore investment !
Both of which prolonged the outcome !
If ya can see it ya can hit it !

Offline magooch

  • Trade Count: (0)
  • Senior Member
  • *****
  • Posts: 6644
Re: Monkey Money
« Reply #2 on: October 09, 2008, 03:46:55 AM »
If the point is that the stock market is a risky business--what's new?  Is it somewhat rigged against the little guy--yup.  But it's not mandatory to participate. 

I made a lot of money in the market and if I'd been just a little wiser, I'd have made a whole lot more.  Right now, my arms are both sore as hell from patting myself on the back for being wise enough to have gotten out when the getting was good.
Swingem