Saturday, 28 February 2009

Government banking bail out finally explained!

This week I came across an old story, which reminded me of all the information I have read about both the US and UK schemes designed to get the economy moving again:

Once upon a time a man appeared in a village 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 next announced that he would now buy
monkeys at $20 each. 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 scarce it was an effort to even find 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 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
already 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
for 700 billion dollars. They never saw the man or his assistant again, only lots and lots of monkeys!!!!

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