Tuesday, November 13, 2007

Market Philosophy

Once upon a time in a village, a man came & announced to the villagers that he
would buy monkeys for $10 each. The villagers, seeing that there were many
monkeys in the forest, went out and started catching them.

The man bought thousands at $10 each. As supply started to diminish and
villagers started to stop their efforts, he announced that now he would buy
them at $20 each.

This renewed the efforts of the villagers and they started catching monkeys
again. Soon, the supply diminished even further and people
s tarted going back to their farms.

The offer rate was increased to $25 each and the supply of monkeys became so
scarce 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 each. However, since he
had to go to the city on some business, his assistant would now buy on behalf
of the man.

In the absence of the man, the assistant told the villagers "Look at all the
monkeys in the big cage that the man has collected. I will sell them to you at
$35 each and when my boss comes back, you can sell them to him for $50 each."

The villagers queued up with all their savings and bought all the monkeys.

After that, neither the assistant nor the businessman could be found anywhere
but the monkeys were everywhere!