Leigh Meyers writes: >> He becomes wealthier due to his financed technological advantage. >> >> Next: The pearls, albeit a 'renewable resource' slowly become scarcer >> because he >> needs to repay the external financing or show increased profitablity, >> dividends... etc, >> >> He begins to over-extract the resources that are providing his income. >> >> Yet he becomes weathier still, due to scarcity of pearls, a scarcity which >> depresses >> demand, causing the 'pearl market' to stabilize... for a while, and stalls >> off 'peak >> pearls'. >> >> Finally, inevitably... again, due to the neccesity of ameliorating those >> external financial >> demands, the pearls are all gone... and, hopefully for the diver, the >> investment in his >> venture paid off. But the pearls are all gone! >> >> For the financier, and the diver by extension at some point in this saga, >> (probably >> around "Yet he becomes weathier still...") it was all about the money >> anyway... not the >> pearls >> >> If he were a pearl lover, he would most likely have cashed out instead of >> 'fishing out' >> the pearls.. >> >> But greed over-rode his judgment.
"But the pearls are all gone!" That is your prediction of the market process. But to the contrary, eventually our entrepeneur would start farming his pearls, which is exactly what now occurs, and there are plenty of pearls (at a price). Score another one for the market. David Shemano
