Monkey Money

Message
Author
User avatar
totalmotorcycle
Administrator
Administrator
Posts: 29679
Joined: Sat Nov 22, 2003 1:00 pm
Real Name: Mike
Sex: Male
Years Riding: 32
My Motorcycle: 2013 Moto Guzzi V7 Stone
Location: Winnipeg, Manitoba

Monkey Money

#1 Unread post by totalmotorcycle »

Once upon a time, in a place overrun with monkeys, 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, they became harder to catch, so the villagers stopped their effort.

The man then announced that he would now pay $20 for each one. This renewed the efforts of the villagers and they started catching monkeys again. But soon the supply diminished even further and they were ever harder to catch, so people started going back to their farms and forgot about monkey catching.

The man increased his price to $25 each and the supply of monkeys became so sparse that it was an effort to even see a monkey, much less catch one.

The man now announced that he would buy monkeys for $50! However, since he had to go to the city on some business, his assistant would now buy on his behalf.

While the man was away the assistant told the villagers, “Look at all these monkeys in the big cage that the man has bought. I will sell them to you at $35 each 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, and once again there were monkeys everywhere.

Now you have a better understanding of how the stock market works.
PG Tips monkey. :D
PG Tips monkey. :D
Monkey.png (359.52 KiB) Viewed 7627 times


- As found on financialarmageddon.com/
NEW 2024 Motorcycle Model Guides
2023 Motorcycle Model Guides

Total Motorcycle is official Media/Press for Aprilia, Benelli, Beta, Bimota, BMW, Brammo, Buell, Can-Am, CCW, Ducati, EBR, Harley-Davidson, Honda, Husqvarna, Husaberg, Hyosung, Indian, Kawasaki, KTM, KYMCO, LiveWire, Moto Guzzi, Moto Morini, MV Agusta, Norton, Phantom, Piaggio, Polaris, Ridley, Roehr, Royal Enfield, Suzuki, Triumph, Ural, Vespa, Victory, Yamaha and Zero.

blues2cruise
Moderator
Moderator
Posts: 10182
Joined: Fri Apr 22, 2005 4:28 pm
Sex: Female
Years Riding: 16
My Motorcycle: 2000 Yamaha V-Star 1100
Location: Vancouver, British Columbia

Re: Monkey Money

#2 Unread post by blues2cruise »

Good analogy.
Image

Post Reply