Thursday, October 09, 2008

Simplest Explanation Of Our Economic Crisis Yet

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 for a monkey.

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 small that it was an effort to even find
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 behalf of him.

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
all their savings and bought all the monkeys.

They never saw the man nor his assistant again, only monkeys everywhere!

Now you have a better understanding of the global financial crisis.


Blogger Avinash Kaushik said...

The best explanation of the crisis I have seen (except for the wonderful program on This American Life).

Great post Chris.

PS: And thanks for turning on full feeds. : )

4:49 PM

Blogger USA job said...

haha.. I had fun reading with your blog and it's really very interesting, that is sounds funny but full of learning's and by that story I can now say that because of the Global financial crisis money now is powerful it can trick you. Now a days it so hard to find a jobs and because of the financial problem they can think a harmful way to find money.

11:51 PM

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4:27 AM

Blogger nigel said...

This blog happened to indicate up in my searches for graphic design jobs and I couldn’t aid clicking on it. I am glad I did mainly because it was a really fulfilling read.

12:01 PM


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