Understanding the world financial situation
If anyone has 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 rupees
The villagers seeing there were many monkeys around, went out to the forest and started catching them. The man bought thousands at 10 rupees, but, as the supply started to diminish, the villagers stopped their efforts. The man further announced that he would now buy at 20 rupees. 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 rupees 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 rupees! 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 rupees and when he returns from the city, you can sell them back to him for 50 rupees.
The villagers squeezed together their savings and bought all the monkeys.
Then they never saw the man or his assistant again, only monkeys everywhere!
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Re: Understanding the world financial situation
Nice one, Master. Here's my version:
One day a man decided to concoct a most wicked scam ever. He picked 100 nice looking pieces of plain rocks and decided to sell them as mighty rocks picked from distant planet Krypton. When he put up the rocks in the market, each rocks started to fetch, 100, 1000 and later millions of dollars. As the price went going up and up, everybody, every institution decided to enter the market of the Krytonite rocks. Millionaires, pension funds, companies, mutual funds and mafias bid for those rocks until it's total value reached 10 trillion dollars. As individuals and companies made more and more money through their normal businesses, they placed their earnings and profits into the rock market. Soon the rocks absorbed the total value of about 40 percent of the world's wealth. Just when there seemed to be no end to this market mania [note: that's exactly what they are], the scammer's conscience started to bother him. And to make the long story short, he decided to announce to the whole world that those rocks where nothing but plain rocks picked from the streams somewhere near the hometown of Manny Pacquiao in some exotic jungles of the Philippines. As soon as the announcement was made, the price of the rocks crashed together with it's market...
And the world lost 40 percent of it's wealth in just a matter of minutes - trillions of dollars just going pfft!..:-\;D
;););)
Re: Understanding the world financial situation
Analogies or oversimplification can not describe the global economy.
Re: Understanding the world financial situation
Quote:
Originally Posted by
boozeboxer
Analogies or oversimplification can not describe the global economy.
Neither can my check book. :o :cool:
