SevenCubed - 6:54 pm on Jan 4, 2011 (gmt 0)
The FB hype will reel in investors that are looking to make a quick buck. Get in early on the IPO, watch the share price go through the roof then dump the stock when everyone realizes the potential is very limited.
It won't stop there, they won't dump the stock per se, they'll dump stock belonging to someone else by short-selling it. Capitalism at its filthy lowest point. The institutional criminals, ahh I mean investors will keep a close eye on the curve and when it is apparent it has reached a peak they will then sell the shares short and continue to siphon money while the shares are on their way down. Short-selling shares is a gimmick that was put in place to entertain white collar gamblers who get bored. It is not based on value or even perceived value -- it's an all-out gambling speculation.
Someone here implied some time back that I was capitalism bashing. I'm not, lest you think so again. I live in a capitalist society and for the most part I am content with it's structure. It's better than most alternatives on this planet. My beef is with individuals and/or companies who use the capitalist platform to launch themselves to new lofty levels of greed and corruption for which there is no definition, except it's closest cousin, capitalism. That is what we are witnessing unfolding here in this Facebook game as the breeding ground is being prepared for the institutional players. In the end, it will unravel at the expense of the middle-class one way or another, it always does.
That's why every time I read someone stating their warm and fuzzy “share holder value” theories it makes me cringe...if only the public had a real idea about what's going on.
77 year old Elinor Ostrom, winner of the 2009 Nobel Prize for Economics, is trying to educate us before it's too late. I hope her economic principles gain momentum to bring an end to Facebook-like abuses.