Once upon a time in a place overrun with monkeys, 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, they became harder to catch, so the villagers stopped their effort.
The man increased his price to $25 each and the supply of monkeys became so sparse that it was an effort to even see a monkey, much less catch one.
The man now announced that he would buy monkeys for $50! However, since he had to go to the city on some business, his assistant would now buy on his behalf.
While the man was away the assistant told the villagers... “Look at all these monkeys in the big cage that the man has bought, I will sell them to you at $35 each 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.
From that great buying day of the monkeys, they never saw the man or his assistant again and once again there were monkeys everywhere.
Now you have a better understanding of how the stock market works and now you a feel of what happened in the housing market collapse in the US! Keep reading Polepole’s PORTAL for more.
Want to change? Karibu! Change happens when me and you UNDERSTAND!