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 Rs.100.
The villagers seeing there were many monkeys around, went out to the forest
and started catching them. The man bought thousands at Rs.100, but, as the
supply started to diminish, the villagers stopped their efforts. The man
further announced that he would now buy at Rs.200. 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 Rs.250 and the supply of monkeys
became so little that it was an effort to even see a monkey, let alone catch
The man now announced that he would buy monkeys at Rs.500! 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 Rs.350 and when he returns from the city, you can sell them back
to him for Rs.500.'
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.