How the Stock market Works

[Seafront Plodder]

With all the financial turmoil surrounding us recently, I thought I'd post an explanation of how the Stock Market actually works...

It was autumn, and the Red Indians at a remote reservation asked their new Chief if the winter was going to be cold or mild. Since he was a Red Indian chief in a modern society, he couldn't tell what the weather was going to be.

Nevertheless, to be on the safe side, he replied to his Tribe that the winter was indeed going to be cold and that the members of the village should collect wood to be prepared. But also being a practical leader, after several days he got an idea. He went to the phone booth, called the National Weather Service and asked, "Is the coming winter going to be cold?"
"It looks like this winter is going to be quite cold indeed," the meteorologist at the weather service responded.
So the Chief went back to his people and told them to collect even more Wood.

A week later, he called the National Weather Service again. "Is it Going to be a very cold winter?"
"Yes," the man at National Weather Service again replied, "it's definitely going to be a very cold winter."

The Chief again went back to his people and ordered them to collect every scrap of wood they could find.
Two weeks later, he called the National Weather Service again. "Are you absolutely sure that the winter is going to be very cold?"
"Absolutely," the man replied. "It's going to be one of the coldest winters ever."
"How can you be so sure?" the Chief asked.
The weatherman replied, "The Red Indians are collecting wood like crazy."

And that, is how stock markets works!!!

[Sweder]

Me takum umbrage at dreadful slight on Red Indian Nation.
Not enough white man steal our land, rape our women, kill our sons, we have to puttum up with this tribalist nonsense. We thought political correctness cured heap big patronising yellow beard rubbish.

Now if don't mind, me gottum rain-dance to attend to . . .
Hey-ah Humma, Hey-ah Hey-ah
Hey-ah Humma, Hey-ah Hey-ah . . .

[Sweder]

. . . this should do the trick.
Apologies to Sarah Palin. Yes, I will burn in hell . . .

[El Gordo]

With all the financial turmoil surrounding us recently, I thought I'd post an explanation of how the Stock Market actually works...

It was autumn, and the Red Indians at a remote reservation asked their new Chief if the winter was going to be cold or mild. Since he was a Red Indian chief in a modern society, he couldn't tell what the weather was going to be.

Nevertheless, to be on the safe side, he replied to his Tribe that the winter was indeed going to be cold and that the members of the village should collect wood to be prepared. But also being a practical leader, after several days he got an idea. He went to the phone booth, called the National Weather Service and asked, "Is the coming winter going to be cold?"
"It looks like this winter is going to be quite cold indeed," the meteorologist at the weather service responded.
So the Chief went back to his people and told them to collect even more Wood.

A week later, he called the National Weather Service again. "Is it Going to be a very cold winter?"
"Yes," the man at National Weather Service again replied, "it's definitely going to be a very cold winter."

The Chief again went back to his people and ordered them to collect every scrap of wood they could find.
Two weeks later, he called the National Weather Service again. "Are you absolutely sure that the winter is going to be very cold?"
"Absolutely," the man replied. "It's going to be one of the coldest winters ever."
"How can you be so sure?" the Chief asked.
The weatherman replied, "The Red Indians are collecting wood like crazy."

And that, is how stock markets works!!!

Nice one. Yep, the stock market is a great example of the self-fulfilling prophecy.

[Seafront Plodder]

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 then announced that he would now pay £20 for each one. This renewed the efforts of the villagers and they started catching monkeys again. But soon the supply diminished even further and they were ever harder to catch, so people started going back to their farms and forgot about monkey catching.

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. They never saw the man or his assistant again and once again there were monkeys everywhere.

[Sweder]

I like that one better