Of fables and foibles, financial and fiduciary
Once upon a time a man appeared in a village and announced that he would buy donkeys for $10 each.
The villagers, knowing that there were many donkeys around, went out and started catching donkeys.
The man bought thousands of donkeys at $10, but as the supply began to diminish, the villagers slowed their effort.
The next day the man announced that he would now buy donkeys at $20 each.
The villagers renewed their campaign to catch donkeys.
As the supply diminished even further, people started going back to their farms.
When the offer increased to $25, donkeys became so scarce that it was an effort just to spot a donkey, let alone catch one!
The man now announced that he would buy donkeys at $50 each!
However, since he had to go to the city on some business, his assistant would buy them on his behalf.
In the absence of the man, the assistant told the villagers: “Look at all these donkeys in the big pen that the man has already collected. I will sell them to you at just $35, and when the man returns from the city, you can sell them back to him for $50 each.”
The villagers emptied their savings, and borrowing all of the money that they could borrow, bought the entire collection of donkeys for 700 billion dollars.
They never saw the man or his assistant again, only lots and lots of asses!
And now you have a better understanding of the Wall Street Bailout Plan.
(Author Unknown)
