[cobra de capell]

"Dad's Baldness"

Little Johnny was eating breakfast one morning
and got to thinking about things. "Mommy, mommy,
why has daddy got so few hairs on his head?" he
asked his mother.

"He thinks a lot," replied his mother, pleased with
herself for coming up with a good answer to her
husband's baldness.

Or she was until Johnny thought for a second and
asked, "So why do you have so much hair?"
_____

It was the first day of class, and the first-grade teacher wanted to see what sort of pupils she had on her hands. So she gave a little quiz:

1. What do you want to be when you grow up?
2. What is 1+1?

She got back the following papers:

1. A schoolteacher.
2. 2.

1. A computer programmer.
2. 10 in binary; 2 in octal, decimal, or hex.

1. A physicist.
2. You haven't told me how accurately those 1's were measured.

1. A mathematician.
2. 2, unless you are working in a field of characteristic 0.

1. An accountant.
2. What answer do you want?
_____

"Dear Potential Investor"

I know you are always looking for sound opportunities
for investment.

I don't know if you would be interested in this,
but I thought I would mention it to you because
it could be a real "sleeper" in making a lot of
money with very little investment.

A group of us are considering investing in a large
cat ranch near Hermosille, Mexico. It is our
purpose to start rather small, with about one
million cats. Each cat averages about twelve
kittens each year; skins can be sold for about
20 cents for the white ones and up to 40 cents
for the black. This will give us 12 million cat
skins per year to sell at an average price of
around 32 cents, making our revenues about $3
million a year. This really averages out to $10
thousand a day - excluding Sundays and holidays.

A good Mexican cat man can skin about 50 cats
per day at a wage of $3.15 a day. It will only take
663 men to operate the ranch so the net profit
would be over $8,200 per day.

Now, the cats would be fed on rats exclusively.
Rats multiply four times as fast as cats. We
would start a rat ranch adjacent to our cat farm. If
we start with a million rats, we will have four rats
per cat each day. The rats will be fed on the
carcasses of the cats that we skin. This will give
each rat a quarter of a cat. You can see by this
that this business is a clean operation -- self-
supporting and really automatic throughout. The
cats will eat the rats and the rats will eat the cats
and we will get the skins.

Let me know if you are interested; as you can
imagine, I am rather particular who I want to get
into this, and want the fewest investors possible.

Eventually, it is my hope to cross the cats with
snakes, for they will skin themselves twice a
year! This would save the labor costs of skinning
as well as give me two skins for one cat.

May I hear from you at your earliest opportunity?

Sincerely,

The CatWoman
_____

The Theory of Banking or How Banks Make Money

Q: What are banks for?
A: To make money.

Q: For the customers?
A: For the banks.

Q: Why doesn't bank advertising mention this?
A: It would not be in good taste. But it is mentioned by implication in references to reserves of $249,000,000,000 or thereabouts. That is the money they have made.

Q: Out of the customers?
A: I suppose so.

Q: They also mention Assets of $500,000,000,000 or thereabouts. Have they made that too?
A: Not exactly. That is the money they use to make money.

Q: I see. And they keep it in a safe somewhere?
A: Not at all. They lend it to customers.

Q: Then they haven't got it?
A: No.

Q: Then how is it Assets?
A: They maintain that it would be if they got it back.

Q: But they must have some money in a safe somewhere?
A: Yes, usually $500,000,000,000 or thereabouts. This is called Liabilities.

Q: But if they've got it, how can they be liable for it?
A: Because it isn't theirs.

Q: Then why do they have it?
A: It has been lent to them by customers.

Q: You mean customers lend banks money?
A: In effect. They put money into their accounts, so it is really lent to the banks.

Q: And what do the banks do with it?
A: Lend it to other customers.

Q: But you said that money they lent to other people was Assets?
A: Yes.

Q: Then Assets and Liabilities must be the same thing?
A: You can't really say that.

Q: But you've just said it! If I put $100 into my account the bank is liable to have to pay it back, so it's Liabilities. But they go and lend it to someone else and he is liable to have to pay it back, so it's Assets. It's the same $100 isn't it?
A: Yes, but....

Q: Then it cancels out. It means, doesn't it, that banks haven't really any money at all?
A: Theoretically....

Q: Never mind theoretically! And if they haven't any money, where do they get their Reserves of $249,000,000,000 or thereabouts??
A: I told you. That is the money they have made.

Q: How?
A: Well, when they lend your $100 to someone they charge him interest.

Q: How much?
A: It depends on the Bank Rate. Say five and a-half percent. That's their profit.

Q: Why isn't it my profit? Isn't it my money?
A: It's the theory of banking practice that....

Q: When I lend them my $100 why don't I charge them interest?
A: You do.

Q: You don't say. How much?
A: It depends on the Bank Rate. Say a half percent.

Q: Grasping of me, rather?
A: But that's only if you're not going to draw the money out again.

Q: But of course I'm going to draw the money out again! If I hadn't wanted to draw it out again I could have buried it in the garden!
A: They wouldn't like you to draw it out again.

Q: Why not? If I keep it there you say it's a Liability. Wouldn't they be glad if I reduced their Liabilities by removing it?
A: No. Because if you remove it they can't lend it to anyone else.

Q: But if I wanted to remove it they'd have to let me?
A: Certainly.

Q: But suppose they've already lent it to another customer?
A: Then they'll let you have some other customer's money.

Q: But suppose he wants his too... and they've already let me have it?
A: You're being purposely obtuse.

Q: I think I'm being acute. What if everyone wanted their money all at once?
A: It's the theory of banking practice that they never would.

Q: So what banks bank on, is not having to meet their commitments?
A. YOU GOT IT!