Chapter 18
Analogy of the Stock Market
The Monkey Story author unknown
There are several financial instruments that create an illusion that its owned become rich and prosperous.
In fact, a set of crooks calling themselves financial wizards lure the vulnerable, operate from behind the real world and rob the hungry middle class.
In an economy where the inflation rate is as high as
9 percent, a ten percent interest on saving is not a great option.
The ignorance of lower middle class and middle class people, combined with their economic insecurity, come handy for the crooks to loot the already starved.
Stock market, a monkey business?
Once upon a time a man told a small village, “I will buy monkeys for $10 each.”
Since there were many monkeys in the forest, the villagers caught them and sold them to the man.
As the supply of monkeys diminished, the villagers’ efforts slowed, so the man offered them $20 each.
They renewed their efforts but the supply of monkeys diminished further, so he increased his price to $25.
Soon no one could even find a monkey in the forest.
The man increased his price to $50, but announced, “Since I must go to the city on business, I authorize my assistant to buy monkeys on my behalf.”
As soon as his boss was gone, the assistant told the villagers, “My boss has collected lots of monkeys. I’ll sell them to you for $35 and then, when he returns, you can sell them to him for $50.”
The villagers rounded up all the money they could and bought as many monkeys as possible. Then they had monkeys everywhere… … but they never saw the man or his assistant again.
And now you understand the workings of the stock market!
Such fradulant transactions are neither new or unique to stock market alone.
Commodity market:
The buy and sell of commodities in commodity market is not real movement of goods. This has the tendency to inflate the price of commodities. Those benefitted by the increased prices are traders and not the producers.
It is the nature’s law that any undue advantage today would turn-out to be an unbearable disadvantage at the latter part.
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