This idea could have been originally formulated in Zimbabwe:
Once upon a time, in a village near Bulawayo, 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 into the forest and started catching them. The man bought thousands of monkeys at
$10 and, as supply started to diminish, the villagers stopped their effort.
The man then 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 villages.
The man increased the price to
$25 per monkey, 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 back to Baltimore 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 Baltimore, you can then sell them to him for
$50 each." The villagers rounded up all their earnings, dipped into their savings, paid the assistant, and bought all the monkeys at
$35 each.
They never saw the man, nor his assistant, again … only monkeys everywhere!
Now you have a better understanding of how the stock market works. I thought this was so appropriate to what is happening currently in the global stock market meltdown.
Carpe Diem.