RE: UKNM: More overvalued stocks

[Steve Johnston]

> -----Original Message-----

>

From: Clay Shirky [clayshirky [dot] com (mailto:clayshirky [dot] com)]

> Sent: 28 July 1999 10:44

>

To: uk-netmarketingchinwag [dot] com

> Subject: Re: UKNM: More overvalued stocks

> 

> 

> > This is not a debate about the efficiency of the market. This is an

> > observation about how a simple matter of supply and demand can

> > masquerade as a confirmation of worth.

> 

> Where else is a confirmation of worth to come from, if not the mutual

> agreement of the interested parties? What mechanism except supply and

> demand could determine worth?


Agreed, but is 'the mutual agreement of the interested parties' what is

actually going on here - other than in the most literal sense. I feel -

and again, no formal Economics present here - that supply and demand is

determining the Price, not the Worth, and that hysteria can distort the

supply and demand dynamics. 


"Every has one already? Shit I must get one. 'That'll be �100 for this

delightful Furby, Sir'" Maybe a Furby was nominally 'worth' �100 for a

brief moment in time, but on December 26th the damn thing was worthless

- although I have to confess a fondness for the little thing. 


And this is my layman's point; just because it's tough to get hold of

Freeserve shares right now because everyone is completely, fucking

insane doesn't make them Worth - in the bigger sense of the word - �2.00

of anybody's money. But then I suppose that's obvious really, isn't it?


Steve Johnston

steve [dot] johnstonentranet [dot] co [dot] uk

Mobile +44 (0)7901 853273

Office +44 (0)1491 878787 

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