I tot it was quite funniee.... :p

[Nisa]

A great illustration of the sub-prime problem in layman language.?

I see, now i have a better understanding of the sub-prime mortgage crisis.

Louis Vuitton

One day, an ordinary-looking man came with a pretty-looking sweet young thing (SYT) to the Louis Vuitton (LV) store in Causeway Bay, Hong Kong. He chose an LV bag worth HKD 65,000 for the sweet young thing. When it came time to pay, the man took out a cheque book and wrote out a cheque.

The salesperson was hesitant because the couple hadn't shopped there before.. The man discerned what the salesperson was thinking and he said calmly: "I sense that you are concerned that this cheque may bounce, right? Today is Saturday and the banks are closed. Let me suggest that I leave the cheque and the handbag here. When the cheque clears on Monday, you can deliver the handbag to this lady. How about that? "The salesperson was reassured and gladly accepted the suggestion. In addition, he waived the delivery charges. He promised that he would personally make sure that this gets done. On Monday, the salesperson took the cheque to the bank.

The cheque bounced! The irate salesperson called up the client, who told him: "What is the big deal? Neither you nor I have suffered any loss. Last Saturday night, that girl and I had a good time in bed! Oh, by the way, I thank you for your cooperation."

This story reveals the nature of the sub-prime mortgage crisis.When people have high hopes for huge future returns, they lower their guard about the potential risks. ?This pretty girl thought that the HKD 65,000 LV bag was going to come home on Monday, and so she lowered her guard.

Therefore, she believed that her investment in the ONS (one night stand) was worth it even though it was based upon huge and highly uncertain risks. Investment companies are great with packaging high return but high risk deals. The Chinese stock speculators are like this pretty woman. As such, they deserve to lose money.

Without people like these, how are people going to make money from the stock market? As for the media and the stock analysts, they often play the role of the Louis Vuitton salesperson.

 

[Deadpoet]

This is a riot! :thumbsup::thumbsup::thumbsup::bsmilie::bsmilie::bsmilie:

 

[Long Thai Bean]

While we are having fun trashing the financial markets ....

Here is my contribution to "Understanding the Stock Market" ...


Once upon a time, in a village, 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, the villagers stopped their effort. He 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 increased to $25 each 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 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 collected. 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 with all their savings and bought all the monkeys.

Then they never saw the man nor his assistant, only monkeys everywhere!


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

ENJOY .... :bsmilie: