Monkey Business

Once upon a time a man appeared in a village and announced to the villagers that he would buy monkeys for $10 each.



The villagers, knowing there were many monkeys, went to the forest and started catching them. The man bought thousands at $10 and, as supply started to diminish, the villagers stopped their effort.
He then announced that he would buy monkeys at $20 each. This renewed the villagers efforts and they started catching monkeys again.
Soon the supply diminished and people started going back to their farms. The offer increased to $25 each and the supply of monkeys became so scarce it was an effort to even find a monkey, let alone catch it!



The man now announced that he would buy monkeys at $50 each! However, since he had to go to the city on some business, his assistant would buy on his behalf.
The assistant told the villagers, "Look at all these monkeys in the big cage that my boss has already collected. I will sell them to you at $35 and when my boss returns, you can sell them to him for $50."

The villagers rounded up all their savings and bought all the monkeys.

They never saw the man or his assistant again, only lots and lots of monkeys!



Now you have a better understanding of how the stock market works !!!

It doesn't get much clearer than this....


Now imagine transactions involving millions of monkeys, with villagers borrowing money at high interest to the point of risking all they owned and creating huge debt for their children and grandchildren, and you will have a better understanding of why the stock market losses are so devastating.