Monkeys

Subject: Monkeys

Once upon a time, a man appeared in a village and announced
that he would buy monkeys for $10 apiece.
The villagers knew there were many monkeys around,
so they went into the forest and started catching them.

The man bought thousands at $10 and as supply started to
diminish, the villagers stopped their effort.  He further
announced that he would now buy at $20.

The villagers renewed their efforts and started catching monkeys again.

Soon the supply diminished even further and people started
going back to their farms.

The offer increased to $25 each and the supply of monkeys
became so depleted that it was an effort to even see a monkey,
let alone catch it!

The man announced that he would buy monkeys at $50!
However, since he had to go to the city on some business,
his assistant would now buy 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 $35 and when the man returns from the city,
you can sell them to him for $50 each."

The villagers used every penny of their savings to buy the monkeys.

Then they never saw the man or his assistant ever again,
only monkeys everywhere!

Now you have a better understanding of how Wall Street works.