Mules of Economy

Mules of the World Economic Crisis

A financial advisor was asked to explain in a simple way to ordinary people the world economic crisis.

He said:

A salesman visited a remote village and offered to buy every mule they had for $1000 each.

Many of the villagers sold their mules immediately. Then the salesman raised his buying price to $1200 for each mule. He managed to buy more mules with the newly hiked price.

Then the salesman raised his buying price to $1500 in an attempt to buy the remaining mules from the villagers. The price was irresistible for those who didn’t sell in the first two rounds and sold their mules.

Finally the salesman told the villagers that he would pay $2500 for each mule upon his return after the weekend. By then there were no more mules in the village.

A few hours later, the salesman’s assistance showed up and offered the villagers to sell them their original mules for $2000 each, this way they will be able to sell their mules to his boss at $2500.

The villagers were happy and dug out all their life’s savings to manage a buyback of their original mules and whoever was unable to arrange cash borrowed the needed amount in a hope for a quick profit.

After the weekend, the villagers never got to see the salesman nor his assistance and only two things were left in the village: Debts and Mules.