Sunday, January 25, 2009

The Global Economic Mess aka: 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 for 700 billion  dollars.
They never saw the man or his  assistant again,
only lots and lots of  monkeys!

Now you have a better  understanding of how the

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

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