1. A man went to the market to sell pigs, but encountered rain at night and failed to sell his twenty pigs. He sought shelter at a farmer's house. The young woman of the house said: "There is only one person in the house, it's inconvenient." The man pleaded: "Sister, please let me stay for one pig." The woman agreed, but said there was only one bed. The man said he would sleep on the bed too if she gave him another pig. She agreed. At midnight, the man asked to sleep above her, which she refused at first. The man offered two pigs, she agreed but required no movement. Soon, the man couldn't resist and begged to move a little. She refused again. The man offered two pigs to move once, she agreed. After moving eight times, the man stopped. The woman asked why, the man said he had no more pigs. The woman whispered: "What if I give you the pigs..." The next morning, the man whistled while driving 30 pigs (including 10 from the young woman's house) to the market. Harvard mentor comment: To discover potential user needs, early guidance and cultivation of user needs are necessary, and the resulting investment follows development rules.
2. Another man heard this story and decided to try the same method. He drove his pigs to the market, encountered rain at night, and failed to sell his twenty pigs. He sought shelter at a farmer's house. The young woman of the house said: "There is only one person in the house, it's inconvenient." The man pleaded: "Sister, please let me stay for one pig." The woman agreed, but said there was only one bed. The man said he would sleep on the bed too if she gave him another pig. She agreed. At midnight, the man asked to sleep above her, which she refused at first. The man offered two pigs, she agreed but required no movement. Soon, the man couldn't resist and begged to move a little. She refused again. The man offered two pigs to move once, she agreed. After moving seven times, the man stopped. The woman asked why, the man said: "I'm done." The next morning, the man drove 2 pigs to the market with his head down... Harvard mentor comment: Enterprises should prudently invest according to their own scale, guarding against capital chain breakage issues.
3. Another man heard this story, decided to try the same method while learning from past experiences, so he first exchanged one pig for a Viagra pill. As a result, the next morning, the man whistled while driving 38 pigs (including 18 from the young woman's house) to the market… Harvard mentor comment: If an enterprise gets help from financial capital, its operating ability will be greatly enhanced. With more men knowing this method, the supply of Viagra could not meet the demand, gradually requiring two or three pigs for one pill. Harvard mentor comment: This is inflation. When the price of pigs rose to 16 per pill, Harvard mentor comment: The man has entered marginal cost, apart from confidence in his own abilities and good future expectations, actual current pig flow has become zero.
4. But more men were exchanging pigs, so the Viagra seller decided to expand production capacity and launched a secondary Viagra product. If you lacked one pig, as long as you promised to spend a night in the woman's room, you could borrow first and pay the pig fee later after the matter was completed. This method greatly promoted Viagra sales. Harvard mentor comment: This is a loan, allowing enterprises to choose to borrow working capital based on future income. Later, even if you had no pigs, as long as you promised to spend a night in the woman's room, you could borrow first and pay the pig fee later after the matter was completed. Harvard mentor comment: This is financial innovation, allowing people now to spend future money, anyway, when you're old, you can't use future money either.
5. When the news came out, more men were exchanging pigs. Someone approached the Viagra specialty store, saying this project was great, we can turn it into a quality fund, issue bonds externally, and you can also share my profits, how about that? The Viagra specialty store thought it was a good idea, so the company divided the pig exchangers into three categories: one category paid with real pigs, one partially borrowed pigs, and one completely borrowed without real pigs, issuing three types of bonds. Everyone eagerly participated. They bought the bonds of the Viagra specialty store, the business of the Viagra specialty store was too good, so they outsourced bond sales to another company to operate, and that company also made a fortune, the company grew bigger and bigger, even being able to issue bonds without actual Viagra sales, bringing huge cash income to themselves and the Viagra specialty store. Harvard mentor comment: This is professionals doing professional things, from physical operation to capital operation, the economy enters a higher level. To prevent future losses on their bonds, the company decided to insure them, making bond sales easier because if the bonds had problems, they could still get compensation from the insurance company, wow, sales skyrocketed, the insurance company also received huge unexpected insurance income. Harvard mentor comment: This is risk hedging, strategic alliances, improving the company's risk resistance capability, and protecting consumer interests.
6. Too many men were exchanging pigs, waiting in long lines. The woman couldn't bear it and said: "I quit, I'm moving." Suddenly, there were countless men who owed pigs with Viagras. Harvard mentor comment: This is an individual phenomenon, a normal fluctuation in the market, it won't affect the entire economy. Resulting from the woman's refusal to move back for a long time, some men owing pigs had no income and had to default, causing large amounts of bonds to expire without being exchanged for real pigs, the bond companies saw that one Viagra pill equaled sixteen pigs, which was impossible to repay, so they declared bankruptcy. Harvard mentor comment: This is the subprime mortgage crisis, it won't affect the entire financial industry. Unbeknownst to anyone, the bond companies also insured the bonds, the insurance companies saw that it was impossible to compensate, so they also declared bankruptcy. Harvard mentor comment: This is the financial crisis, it still won't affect the entire real economy.