How the stock Market Bailout works ~not meant to be political!

[Quail_Antwerp]

'Once upon a time a man appeared in a village. He announced to villagers that he wanted to buy monkeys for $10 each.

The villagers, knowing there were many monkeys around, went out to the forest and started catching them. The man bought thousands at $10 each.

As supply started to diminish, the villagers stopped their effort. He then announced 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. Sooo. .the offer increased to $25 each monkey. The supply of monkeys became so scarce it was an effort to even find a monkey, let alone catch it! The man then announced that he would buy monkeys at $50 each! However, since he had to go to the city on some business, his assistant would now buy on behalf of him.

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 each and when man returns from city, you can sell them to him for $50 each.' The villagers rounded up with all their savings and bought all the monkeys. Then. . . they never saw the man nor his assistant again, only lots and lots of monkeys!

'Now you have a better understanding of how the stock market works.'


---- Story is not finished yet ----


. . .Villagers went to city and asked the man why he disappeared. Man told them that he lost all the money and cannot buy more monkeys. Villagers collected some money from surrounding villages to help the man so he can continue business of buying monkeys.

Now you have a better understanding of how the bailout works.

 

[reinbeau]

No politics here, just common sense. This whole bailout idea is just to keep those with money in the money. I'm sorry, but they need to let this go. Let the badly managed companies go into bankruptcy, the good parts will be bought and the bad parts will die the natural death they should. Will it be painful? Absolutely. But this bailout is going to be painful in a different way. I know the business world runs on credit (I don't think it should, but I am not Queen), but the whole house of cards is run on credit now, and people are quietly pulling the foundations out from under it, no amount of bailing is going to help.

 

[roosmom]

I have said from the begining.......NO BAILOUT FOR ANYONE. :|

Now they are doing what they want with the money, where did the money come from in the first place.......printed it? yea and just devalued ours even further...King Paulson is setting himself up (why is he even telling us where to put the money) and he is going to take us down.

 

[FarmerChick]

like reinbeau said
the foundations are slowing being chipped away....they will throw money at everything they can....but in the end, nope, the foundation gives way and Boom, it will be big. when will it happen, not sure, but it is inevitable!

 

[inchworm]

Aren't Ponzi schemes supposed to be illegal?

 

[Homesteadmom]

That is why we are stocking up on everything we absolutly can so we will not be caught with our pants down so to speak like so many others will.
Just a thought, I wonder if McCain had not voted for the bailout if he would have won? Guess we will never know.