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Resource Consumer
30-10-2008, 14:22:07
It was autumn, and the Red Indians (OK, native americans if you prefer) asked their Chief was winter 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 weather man 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.'

This is how markets really work :)

Bob
30-10-2008, 14:49:16
It should also include the sentence "if we don't collect the wood someone else will!"

Scabrous Birdseed
30-10-2008, 15:28:53
And then the government comes and buys all the wood in case it's needed for the cold winter.

KrazyHorse
30-10-2008, 15:29:03
Why would you collect the wood when you could just buy a wood call option? Silly Indians. That's why we own all their land now.

Bob
30-10-2008, 15:36:14
You can also lend wood and sell it for some good money and buy it back cheaper in spring to return it.

Bob
30-10-2008, 15:45:09
To minimize the risk of a warm winter and dropping wood prices they could also buy some weather derivatives

Dyl Ulenspiegel
30-10-2008, 15:50:01
And? Did the wood bubble burst?

Bob
30-10-2008, 15:52:26
is there a sound if wood prices drop and nobody hears it?

Funko
30-10-2008, 15:52:39
Does the pope shit in the woods?

Bob
30-10-2008, 16:03:35
and what is the sound of it?

Funko
30-10-2008, 16:06:10
the sound of one arsehole shitting?

Scabrous Birdseed
30-10-2008, 16:42:10
Wouldn't it make more sense to sell the wood first and then pick it, in the hope that the winter will be warm?

Dyl Ulenspiegel
30-10-2008, 18:40:34
But what if no wood is left for a government bailout?

You print wood assignates that make a lovely fire.

TCO
30-10-2008, 22:16:24
Originally posted by Resource Consumer
It was autumn, and the Red Indians (OK, native americans if you prefer) asked their Chief was winter 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 weather man 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.'

This is how markets really work :)

:D

Oerdin
31-10-2008, 00:46:05
Originally posted by KrazyHorse
Why would you collect the wood when you could just buy a wood call option? Silly Indians. That's why we own all their land now.

You should Bob should have been MBAs.

MoSe
31-10-2008, 08:00:33
in breton woods things would go differently

Shining1
31-10-2008, 10:39:43
... stocking up on credit/default swaps for the winter.

Paper still burns. It's not worthless if you use it right.

Bob
31-10-2008, 11:21:33
what paper? you gotta burn bytes these days

mr_B
31-10-2008, 11:22:10
byte me!!!

Bob
31-10-2008, 11:24:14
1024 times

mr_B
31-10-2008, 11:26:56
rrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr