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Monday, May 24, 2010

Understanding the currect world financial situation- Made Simple, Simply the Indian way.‏

Understanding the currect world financial situation- Made Simple, Simply the Indian way.‏








> 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.

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