Once upon a time in a village, a man appeared and announced to the villagers that he would buy monkeys for $10 each.
The villagers seeing that there were many monkeys around, went out 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 further announced that he would now buy at $20. 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 increased to $25 each and the supply of monkeys became so little 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! 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 rounded up with all their savings and bought all the monkeys.
Then they never saw the man nor his assistant ever again, only monkeys everywhere!
Now you have a better understanding of how the stock market works.
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17 comments:
John,
I must be dumb dumb dumb because your little story made no sense to me. How about an explanation for the simple minded like myself.
what i got about it was basically that the monkeys are the stocks... am I right John?
John, let me try my hand at answering this question. Monkeys AKA beaniebabies, baseball cards, stocks, fill-in-the-blank, were worth $0 before the man came. The man started buying monkeys for $10 each which made them valuable. The value of monkeys increased over time because the man paid more and more for them as the supply decreased, first $20 then $25 per monkey. The man and his assistant tricked the people into buying all the monkeys back for $35 each because there were no more monkeys to catch and monkeys were now worth $50 each. In the real world there are many men with many more assistants and they have formed institutions and laws and they have names like: market makers, bankers /brokers AKA money pimps, false profits?, swindlers, Federal Reserve Bank AKA IRS, and the list goes on ad nauseam. The rest of the story is that the man and some of his new friends from China and other John, let me try my hand at answering this question. Monkeys were worth $0 before the man came. The man started buying monkeys for $10 each which made them valuable. The value of monkeys increased over time because the man paid more and more for them as the supply decreased, first $20 then $25 per monkey. The man and his assistant tricked the people into buying all the monkeys back for $35 each because there were no more monkeys to catch and monkeys were now worth $50 each. In the real world there are many men with many more assistants and they have formed institutions and laws and they have names like: market makers, bankers /brokers AKA money pimps, false profits?, swindlers, Federal Reserve Bank AKA IRS, and the list goes on ad nauseam. The rest of the story is that the man and his new foreign friends returned to the village and offered $0.05 per monkey to start the whole process over again. This process has happen many times in the past but the sheeple never could figure it out until the internet with Youtube came to town then the people slaughtered the man, took their money back and lived happily ever after. The End~
Oops, didn't notice my duplicate paste. Sorry, not sure how to fix it.
I think this story illustrates what is sometimes called the "greater fool theory." That is when someone buys something for an exorbitant price on the theory that a greater fool will come along and buy it from them for an even more exorbitant price. It works for awhile, but obviously cannot go on forever. The trick is to jump in and jump out before the process ends -- in other words, not to be the greatest fool. It is the essence of speculation, and modern markets thrive on it. The man who did not return represents the greater fool who never showed up.
Well it is nice to know some things never seem to change. I come back after a very long time and what do I see but many of the “old timers” holding down the fort. I have been putting away all the gold and silver that I can. My “friends” who used to call me fool now call me prophet, I’m sure many of you have had the same experience. After Viet Nam it is nice to win once and a while…and for sure we are all winning now.
But I must say that my worry grows deeper. I see the land that I love falling apart. The sheepeople clamor for more free stuff, our univited guest eat way too much out of our substance. The pols give away the farm. We have far too many military personel in way too many places. Many of the worlds people we protect make fools of us charging us millions a year for bases in their land. The mismanagement goes on forever, and I think the end is in sight I’m afraid. Afraid, not so much for me but for the one who are not perpared, the old and weak,a nd the lazy too. The fools blinded by …oh if we could only get (insert name here) in the Whitehouse everthing will be just fine. OK!
As a used up old Marine Corps veteran I live on my VA pension and some ss, with full knowledge that my checks won’t stop coming but soon they won’t pay a light bill as well. Night comes all too soon. Buy your gold & silver now while it is still “on sale”, and avaible.
Gods Blessing upon you all
Thoughout history gold has and always will be money. The only reason Americans have turned away from gold is because the DeBeers company has brainwashed us into thinking that diamonds are valuable. Thus diamonds have replace gold. Look at who help fund DeBeers, JP Morgan/Rothchilds. Those very diamonds have bought and paid for civil wars and bloodshed in Africa. We need to stop looking a Fiat monet as anything more than Private Families way to control the population. Gold and silver are money and food is freedom.
Look at "the secret rulers" and you will realize that the ROthchild have been behild every conflict and started Central BAnking. They have bankrupted America and we need to protest this making every citizen aware. If we leave our cildren this world with ID chips and and police state we will regret it!
John I did some research on the Rothschlds,
Who has 400 trillion dollars and is responsible for bringing Hitler and Stalin itno power. Who forced Amercia into World War I so that they could get Isreal and bankrupt America. Who started the Federal Reserve, stole Americas gold and has bankrupt England and America. Who has a bank in every major City in the world and is causing massive Famine in Africa.
Who slept in theWHite during his wedding and plays both side and profits from War.
Who stole the Jews Gold and the Gold at the World Trade Center, and Fort Knox!
Who is pushing us into a North AMerican Union and picks our Presdients. Who's dughter just solda bank for 650 million dollar and hangs with Hillar Clinton.
Who own shares in Fox news and is the reason why ROn PAul cannot get press time and his oil pipeline and opium is the reason we are in Afganastan and Iraq?
Who is pushing for a World Government, Religon, police state. Who want to use blackwater against American citzens.
Who has passed banking laws and the PAtriot act taking away our lierties and trying to end the Constituion?
After reading these comments John I think you are talking about GOLD. It has very few uses except jewelry, about as much use as a monkey. Men buy it up and sell it for more and more to artificially elevate the market. Gold is man's monkey. As
you said, food is useful, needed and of more intrinsic value but we have made GOLD our monkey, not stocks. Since they are never in short supply unlike gold.
A 2006 study by Congress found that increasing fees by 1 percentage point results in you having 17% less money money when you retire.
In their example, put $20,000 in a 401(k) for 20 years and you end up with $58,000 if the fees are 1.5%. But if they were .5%, you would have $70,500. That's a lot of money. Increase the time to 35 years and what would be $220,000 drops to $163,000.
If you invest $1,000 at age 20 with an 8% return and 2.5% expense ratio, and just leave it there like that until you're 85, you will come out with $35,250, while your fund manager rakes in a cool $126,432.
How is this possible? Well we all know how great compounding interest is, right? This is the same thing in reverse, the costs are compounding. Quietly. Rapaciously.
Stock are like playing musical chairs, you never wqnat to be standing when the music stops. We all stand in line to watch the stocks go up, up ,up and losse everthing when they go down, when it all over we get in line to play again!
If you ever watch the Dow and Jones documentary, the reason why the wallstreetjournal and the Dow and Jones were created is because the bankers where ripping people off. They would sell shares and then crash the markets still everyones savings. The called it "sheering the sheep".
Gold is finite and trees are plentyful. Gold requires sweat equity why making FIAT money require going into your backyard chopping down a tree and making a dollar.
Add computers and the game is ever better! If gold is the monkey then FIAT money is what? Toilet paper!
People travel from aroung the world to Egypt to see gold statues and masks, do you remeber what the Egyptian or Roman Empire currency looks like?
Well..., I loved your cautionary monkey tale. As a matter of fact, my blog now has the Red Rose Tea monkeys as a link. Can you find it? If you can, I will sell you a monkey, cheap!
visit:
www.tradingwellandliving.blogspot.com
pm's got bitch slapped fri due to GATA article and helicopter boy.IMHO
Internet Service Down Across Middle East
(IsraelNN.com) Internet services have been disrupted in large parts of the Middle East and India following cuts in two international submarine cable systems Wednesday morning.
India is suffering 60 percent disruption in service, with Egypt suffering 70 percent. The United Arab Emirates, Kuwait, Dubai, and Saudia Arabia are also experiencing degraded performance.
International telephone calls have also been affected, with massive rerouting work aimed at fixing the problem. Industry experts expect the damaged cables to be back in service in a week's time.
I think after this is all done the dollar will be as good as gold and all of this will be in the history books, until another 50-60 years.
Until then buy some monkeys and chimps!
gold and silver is good for now but in 5 to 10 years the one world gov will be in full throttle. and there will be only electronic money,no bank note or hard currency.
In the last days men will go to and fro throught out the whole earth ever increacing in knowledge
and pursuit of personal wealth.(lovers of money instead of god)
not realizing they are poor naked and blind.(spirtual bankrupt)
look how tech adv we have become in the last 50 years!!
word of advice .Search for truth with all your heart as you search for gold or silver and the truth will set you free .
The bible say that men will through there gold and silver in the street begging for bread!!
buy hybrid seeds for a garden!!
so you can eat. the storm is coming
comment not intended to offend anyone !!
Good comment lance,
but always remenber who wrote the bible.
You do not need a bible to tell you that killing is evil, your conscience can tell you that, but why do we need to wait for Jesus to save us from the current Evil that we are facing. Internation Bankers and War Profitiers!
Gold and silver is only fair for trade but truth will set us free.
If we were still farming like the Amish the "bread" reference would not matter.
We had been led like cattle into our own demise and unless we understand that and trust ourselves and deal with the circumstances that face us the bible was written to enslave us, by not allowing us to trutst the powers that we hold. It is about freedom, not food, gold, silver nothing is more powerful than knowledge and freedom.
We have the knowledge so we must fight for freedom.
God is with in, and within us we all have the power to decide our fates, so talking on the internet and hoping the we get this or that President does not matter. We have a spiritual war and blood will be shed, be if we want to be free we have to fight, anything more or less will be our demise.
The bible cannot save us, we have to save us! I love Ron PAul but he cannot stop the Rothchilds, they killed Kennedy and they will kill again and again and again, until we stop them!
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