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Wednesday, August 22, 2007

The Fundamental Joke

When my first life personality was working for the Government in 1997, the Estonian stock exchange crashed through the floor. Several important people kept insisting publicly that "the fundamentals are good" and "there is ACTUALLY no reason for the stock prices to fall". The prices still kept falling, not caring about the fundamentals.

Today the Finance ministry of Estonia announced that "there are no big problems for Estonian economy", but "people are psychological beings and may overreact". That was said in the context of soft landing expectations for Estonian economy (coming down from double digit growth numbers).

Well, dudes...analysts... When do you learn that there are no "fundamentals" in economy? Economy is an agreement, based on mutually useful exchange. And this is why it is as virtual as the whole Second Life business. Economy IS one of the most important virtual spaces. What people say it costs, it costs. What people believe, makes economy tick. The "fundamentals" are just simplifications for all this. Don't be funny, admit it.