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Thread: Understanding Wall Street Situation...Great Analogy to share....

  1. #1
    Senior Member sammy888's Avatar
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    Talking Understanding Wall Street Situation...Great Analogy to share....

    If anyone have difficulty understanding the current world financial situation, the following should help....


    Once upon a time in a village in India, a man announced to the villagers that he would buy monkeys for $10.
    The villagers seeing there were many monkeys around, went out to the forest and started catching them.

    The man bought thousands at $10, but, as the supply started to diminish, the villagers stopped their efforts. The man further announced that he would now buy at $20. 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 rate increased to $25 and the supply of monkeys became so little that it was an effort to even see a monkey, let alone catch it!
    The man now announced that he would buy monkeys at $50! However, since he had to go to the city on some business, his assistant would now act as buyer, 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 collected. I will sell them to you at $35 and when he returns from the city, you can sell them back to him for $50.'
    The villagers squeezed together their savings and bought all the monkeys.
    Then they never saw the man or his assistant again, only monkeys everywhere! Welcome to WALL STREET.

    Last edited by sammy888; 4th October 2008 at 12:50 PM.

  2. #2

    Default Re: Understanding Wall Street Situation...Great Analogy to share....

    Rubbish Lah! Not even close!

  3. #3

    Default Re: Understanding Wall Street Situation...Great Analogy to share....

    hahaha...
    very interesting.. hahaa

  4. #4
    Senior Member sammy888's Avatar
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    Default Re: Understanding Wall Street Situation...Great Analogy to share....

    Quote Originally Posted by Parchiao View Post
    Rubbish Lah! Not even close!
    Hey..I am just kicking around and come across this bit but depending on how you look at it..there is a good ring of truth to it as generalising or self serving at it might read. heheheh.... It's the weekend..relax.
    Last edited by sammy888; 4th October 2008 at 01:12 PM.

  5. #5

    Default Re: Understanding Wall Street Situation...Great Analogy to share....

    Quote Originally Posted by sammy888 View Post
    Hey..I am just kicking around and come across this bit but depending on how you look at it..there is a good ring of truth to it as generalising or self serving at it might read. heheheh.... It's the weekend..relax.
    Truth there may well be but is it a valid analogy?

    Seemingly simple, is not always so; for there is also the simplistic, which is simply dangerous.

    A little knowledge is a dangerous thing, which, as an analogy, is like a loaded gun in a child's hand.
    Last edited by espion; 4th October 2008 at 11:13 PM.

  6. #6
    Senior Member giantcanopy's Avatar
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    Default Re: Understanding Wall Street Situation...Great Analogy to share....

    It is Paulson trying to bailout his old time buddies la. How more simple.

    First his buddies screw up the people's investment, now the people have to pay for the screw up they did. Makes you wonder how much can the 700 bn do to help skirt the problem, when Lehman themselves already managed to chalk up > 600 Bn in debts



    Ryan

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    Default Re: Understanding Wall Street Situation...Great Analogy to share....

    entertaining, i never understand Wall St, u see i grow up watching Sesame St wan.

    u got TV series in VCD?

    we here oso got our local version....
    Last edited by sORe-EyEz; 4th October 2008 at 02:23 PM. Reason: text added

  8. #8

    Default Re: Understanding Wall Street Situation...Great Analogy to share....

    The important question now is how much is this crisis affecting our banks and ultimately our CPF.

    No one is asking, and we hear - obviously - only positive noises.

    Maybe I write another parable ...

  9. #9

    Default Re: Understanding Wall Street Situation...Great Analogy to share....

    Quote Originally Posted by espion View Post
    The important question now is how much is this crisis affecting our banks and ultimately our CPF.

    No one is asking, and we hear - obviously - only positive noises.

    Maybe I write another parable ...
    Temasek bot $5 billion Merrill shares at $48 last year. This year bot another $3.4 billion don't know at what price.
    Merrill share price as at Friday is $26.67. Temasek has donated $2.5 billion to the Americans.

    DBS exposure to Sub prime is about $2.4 billion, ten times more than they first reported the exposure.
    At the same time paid Jacson Tai $1.8 mil for the job well done.
    Last edited by Silence Sky; 4th October 2008 at 03:31 PM.

  10. #10

    Default Re: Understanding Wall Street Situation...Great Analogy to share....

    Quote Originally Posted by Silence Sky View Post
    Temasek bot $5 billion Merrill shares at $48 last year. This year bot another $3.4 billion don't know at what price.
    Merrill share price as at Friday is $26.67. Temasek has donated $2.5 billion to the Americans.

    DBS exposure to Sub prime is about $2.4 billion, ten times more than they first reported the exposure.
    At the same time paid Jacson Tai $1.8 mil for the job well done.
    great! more! more!

  11. #11
    Senior Member sammy888's Avatar
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    Talking Re: Understanding Wall Street Situation...Great Analogy and other stuff to share....

    Quote Originally Posted by espion View Post
    great! more! more!
    Here's more words and lessons I found to ponder about the Corporate Business World:


    The five corporate lessons

    Something to keep in mind for the rest of your life and it’ll definitely get you somewhere

    Corporate Lesson 1
    A man is getting into the shower just as his wife is finishing up her shower when the doorbell rings. The wife quickly wraps herself in a towel and runs downstairs. When she opens the door, there stands Bob, the next door neighbor. Before she says a word, Bob says:
    “I’ll give you $800 to drop that towel.”
    After thinking for a moment, the woman drops her towel and stands naked in front of Bob. After a few seconds, Bob hands her $800 dollars and leaves. The woman wraps back up in the towel and goes back upstairs. When she gets to the bathroom, her husband asks”
    “Who was that?”
    “It was Bob the next door neighbor,” she replies.
    “Great!” the husband says, “Did he say anything about the $800 he owes me?”
    Moral of the story: If you share critical information pertaining to credit and risk with your shareholders in time, you may be in a position to prevent avoidable exposure.


    Corporate Lesson 2
    A priest offered a lift to a Nun. She got in and crossed her legs, forcing her gown to reveal a leg. The priest nearly had an accident. After controlling the car, he stealthily slid his hand up her leg. The nun said:
    “Father, remember Psalm 129?”Â
    The priest removed his hand. But, changing gears, he let his hand slide up her leg again. The nun once again said:
    “Father, remember Psalm 129?”
    The priest apologized, “Sorry sister but the flesh is weak.”
    Arriving at the convent, the nun went on her way. On his arrival at the church, the priest rushed to look up Psalm 129. It said:
    “Go forth and seek, further up, you will find glory.”
    Moral of the story: If you are not well informed in your job, you might miss a great opportunity.


    Corporate Lesson 3
    A sales rep, an administration clerk, and the manager are walking to lunch when they find an antique oil lamp. They rub it and a Genie comes out. The Genie says:
    “I’ll give each of you just one wish.”
    “Me first! Me first!” says the admin. clerk. “I want to be in the Bahamas , driving a speedboat, without a care in the world.”
    Poof! She’s gone.
    “Me next! Me next!” says the sales rep. “I want to be in Hawaii , relaxing on the beach with my personal masseuse, an endless supply of Pina Coladas, and the love of my life.”
    Poof! He’s gone.
    “OK, you’re up,” the Genie says to the manager.
    The manager says, “I want those two back in the office after lunch.”
    Moral of the story: Always let your boss have the first say.


    Corporate Lesson 4
    A crow was sitting on a tree, doing nothing all day. A rabbit asked him:
    “Can I also sit like you and do nothing all day long?”
    The crow answered: “Sure, why not.”
    So, the rabbit sat on the ground below the crow, and rested. A fox jumped on the rabbit and ate it.
    Moral of the story: To be sitting and doing nothing, you must be sitting very high up.


    Corporate Lesson 5
    A turkey was chatting with a bull.
    “I would love to be able to get to the top of that tree,” sighed the turkey, “but I haven’t got the energy.”
    “Well, why don’t you nibble on my droppings?” replied the bull. “They’re packed with nutrients.”
    The turkey pecked at a lump of dung and found that it gave him enough strength to reach the lowest branch of the tree. The next day, after eating some more dung, he reached the second branch. Finally after a fourth night, there he was proudly perched at the top of the tree. Soon he was spotted by a farmer, who shot the turkey out of the tree.
    Moral of the story: Bullshit might get you to the top, but it won’t keep you there.


    Have a good week....and chill

  12. #12

    Default Re: Understanding Wall Street Situation...Great Analogy to share....

    Quote Originally Posted by espion View Post
    great! more! more!

    Maybe you can ask Thaksin, he will tell you more about the Shin Crop deal.
    Last edited by Silence Sky; 4th October 2008 at 04:07 PM.

  13. #13

    Default Re: Understanding Wall Street Situation...Great Analogy to share....

    Another Parable (Part I)

    Good morning children, how's work?

    Bad la. We may lose our jobs sooner than you think.

    Ok, Children, listen, you will from today automatically transfer to your mum's and my account, 50% of your salary, up from one third. Is that understood? Electricity have gone up.

    What? What are you doing to us? And at this time when we may lose our jobs? And isn't it our money? Isn't it our innate inalienable God-given right to decide what we do with it? If you are fearful we wont pay you your parental dues, then can I remind you of our willingness to die for our Home Cleaning Service. How can you be afraid that we are not filial to you, since we are ready to carry broom and mop and pail and sh*t to do Home Cleaning Service anytime anywhere, and even to die in the sh*t.

    Of course your mum and I do not doubt your positive and brave attitudes towards Home Cleaning Service, but it is just that we know better how to manage your money. And just because I say so, if you need to ask and know why. In any case your money is the family's money, just as your mum's and my money are also the family's.

    Ya, but did you not sent us to school, to do a degree, a master, a PhD and post PhD in economics, econometrics, financial engineering, rocket science, complexity and chaos theories, philosophy, political science, psychology, photography, and law? Surely we know a thing or two about managing money too, if not better at least on par with you and mum.

    We send you to school so that you can bring this money to us. In all family matters we decide. Children can say something, like who cleans the toilet and who clear the trays and dishes this week, and only if you dont cross OB markers.

    Ya but we dont agree with your OB markers. Were we consulted as to what these markers were?

    Look, don't exasperate me. We are a traditional family, a paternalistic one. People call us nannies and many other names, but I dont care what people say. I do what I know is best for the family.

    But dad, don't you understand we are not kids, we know at least as much as you do, if not more, and also today with the Internet and Clubsnap, we know so much more and at so much a faster rate. Even if we know only one third of what you know, and have only one third of your wisdom, is not more heads always better than one? Are we not concern - if not more - for this family too? After you go who cleans up the mess?

    But I have always been your father, and will always be. And I have your mum's head always with me. And thats enough!

    Sigh. You do not even realise that saying such a thing, only makes our argument. You are no longer open to reason despite pumping so much money educating us, albeit from the balance after Taksema, but when it comes to decision making you throw a dice at some predetermined time and month and direction. You are making a mockery of us if not the whole family. And all you can say is we are traditional. Then why bother studying Black and Scholes at all? And you never tell us what you do with our family money.

    You just have to respect and trust us.

    Trust and respect are mutual. They are earned, again mutually. When demanded and enforced by a dominant party it becomes tyranny. Why are you afraid to trust us and give us our due respect too? When we are children its ok if we are bullied and made to look like clowns. But we are no longer children. If you are sincere that you mean well for us, surely you can be proud to tell us about it. What is there to hide? Even if a mistake is made here and there, are you afraid we will not forgive you? Surely you recall we have forgiven mum's many mistakes in the past and present too. For is there any mortal who don't make mistakes at all? But more importantly, as you always say, we are to be constantly learning, and learning from mistakes in real actual life is the best lesson of all. Or we do not have the privilege to learn from such big disastrous mistakes?

    Children, do not let me remind you of our Interior Family Room. I have no qualms to act like CS mods and like Northern Neighbour. And I dont care for Uncle Sammy666 too. I have been very GRACIOUS so far to hear all these nonsense. But you are nearing the limit of my tolerance for all your breaches of my OB markers. Let me warn you once more not to say things you cannot say, which in my definition and my dictionary and in my bedroom are called lies and rumours. So no more word, I say.

    To be continued .... if not, find me in the Interior Family Room ...
    Last edited by espion; 4th October 2008 at 06:05 PM.

  14. #14
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    Default Re: Understanding Wall Street Situation...Great Analogy to share....

    woah, wonderful storis for this weekend! kudos to Sammy888 & Espion!

    Kopitiam does have some stories worth the 21% increase in electricity bills!
    Last edited by sORe-EyEz; 4th October 2008 at 05:07 PM. Reason: spelling edit

  15. #15

    Default Re: Understanding Wall Street Situation...Great Analogy to share....

    Espion,

    Waiting for your part two leh..

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    Default Re: Understanding Wall Street Situation...Great Analogy to share....

    Quote Originally Posted by sammy888 View Post
    If anyone have difficulty understanding the current world financial situation, the following should help....


    Once upon a time in a village in India, a man announced to the villagers that he would buy monkeys for $10.
    The villagers seeing there were many monkeys around, went out to the forest and started catching them.

    The man bought thousands at $10, but, as the supply started to diminish, the villagers stopped their efforts. The man further announced that he would now buy at $20. 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 rate increased to $25 and the supply of monkeys became so little that it was an effort to even see a monkey, let alone catch it!
    The man now announced that he would buy monkeys at $50! However, since he had to go to the city on some business, his assistant would now act as buyer, 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 collected. I will sell them to you at $35 and when he returns from the city, you can sell them back to him for $50.'
    The villagers squeezed together their savings and bought all the monkeys.
    Then they never saw the man or his assistant again, only monkeys everywhere! Welcome to WALL STREET.

    I get your point, very good
    I get paid more shooting part time ...... damn, I should find more time to shoot part time

  17. #17
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    Default Re: Understanding Wall Street Situation...Great Analogy and other stuff to share....

    Quote Originally Posted by sammy888 View Post
    Here's more words and lessons I found to ponder about the Corporate Business World:


    The five corporate lessons

    Something to keep in mind for the rest of your life and it’ll definitely get you somewhere

    Corporate Lesson 1
    A man is getting into the shower just as his wife is finishing up her shower when the doorbell rings. The wife quickly wraps herself in a towel and runs downstairs. When she opens the door, there stands Bob, the next door neighbor. Before she says a word, Bob says:
    “I’ll give you $800 to drop that towel.”
    After thinking for a moment, the woman drops her towel and stands naked in front of Bob. After a few seconds, Bob hands her $800 dollars and leaves. The woman wraps back up in the towel and goes back upstairs. When she gets to the bathroom, her husband asks”
    “Who was that?”
    “It was Bob the next door neighbor,” she replies.
    “Great!” the husband says, “Did he say anything about the $800 he owes me?”
    Moral of the story: If you share critical information pertaining to credit and risk with your shareholders in time, you may be in a position to prevent avoidable exposure.


    Corporate Lesson 2
    A priest offered a lift to a Nun. She got in and crossed her legs, forcing her gown to reveal a leg. The priest nearly had an accident. After controlling the car, he stealthily slid his hand up her leg. The nun said:
    “Father, remember Psalm 129?”Â
    The priest removed his hand. But, changing gears, he let his hand slide up her leg again. The nun once again said:
    “Father, remember Psalm 129?”
    The priest apologized, “Sorry sister but the flesh is weak.”
    Arriving at the convent, the nun went on her way. On his arrival at the church, the priest rushed to look up Psalm 129. It said:
    “Go forth and seek, further up, you will find glory.”
    Moral of the story: If you are not well informed in your job, you might miss a great opportunity.


    Corporate Lesson 3
    A sales rep, an administration clerk, and the manager are walking to lunch when they find an antique oil lamp. They rub it and a Genie comes out. The Genie says:
    “I’ll give each of you just one wish.”
    “Me first! Me first!” says the admin. clerk. “I want to be in the Bahamas , driving a speedboat, without a care in the world.”
    Poof! She’s gone.
    “Me next! Me next!” says the sales rep. “I want to be in Hawaii , relaxing on the beach with my personal masseuse, an endless supply of Pina Coladas, and the love of my life.”
    Poof! He’s gone.
    “OK, you’re up,” the Genie says to the manager.
    The manager says, “I want those two back in the office after lunch.”
    Moral of the story: Always let your boss have the first say.


    Corporate Lesson 4
    A crow was sitting on a tree, doing nothing all day. A rabbit asked him:
    “Can I also sit like you and do nothing all day long?”
    The crow answered: “Sure, why not.”
    So, the rabbit sat on the ground below the crow, and rested. A fox jumped on the rabbit and ate it.
    Moral of the story: To be sitting and doing nothing, you must be sitting very high up.


    Corporate Lesson 5
    A turkey was chatting with a bull.
    “I would love to be able to get to the top of that tree,” sighed the turkey, “but I haven’t got the energy.”
    “Well, why don’t you nibble on my droppings?” replied the bull. “They’re packed with nutrients.”
    The turkey pecked at a lump of dung and found that it gave him enough strength to reach the lowest branch of the tree. The next day, after eating some more dung, he reached the second branch. Finally after a fourth night, there he was proudly perched at the top of the tree. Soon he was spotted by a farmer, who shot the turkey out of the tree.
    Moral of the story: Bullshit might get you to the top, but it won’t keep you there.


    Have a good week....and chill
    5 of the best lesson to learn!!! Can I print it out to pin on my board in my office?
    I get paid more shooting part time ...... damn, I should find more time to shoot part time

  18. #18
    Moderator ortega's Avatar
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    Default Re: Understanding Wall Street Situation...Great Analogy and other stuff to share....

    good morning children

    let me remind you that i do not tolerate mod bashing

    moral of this story: heed warnings of potential danger
    Last edited by ortega; 7th October 2008 at 01:21 AM.

  19. #19
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    Default Re: Understanding Wall Street Situation...Great Analogy and other stuff to share....

    Quote Originally Posted by ortega View Post
    good morning children

    let me remind you that i do not tolerate mod bashing

    moral of this story: heed warnings of potential danger
    not here on Wall St (thread)! this thread is clean.

  20. #20

    Default Re: Understanding Wall Street Situation...Great Analogy and other stuff to share....

    wa, a lot of people damn free luh

    love the monkey story though, even though it's a horrible analogy, it's funny. and of course, i'm pretty sure it will work somewhere, probably not in a village. perhaps in a city, where greed and avarice are overflowing.

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