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How Facebook could destroy the U.S. economy (Tulips anyone?)
MarketWatch ^ | 05/22/12 | Paul Farrell

Posted on 05/22/2012 7:35:57 AM PDT by AngelesCrestHighway

Facebook just joined a “troubled club,” warns the Economist. Now it’s just another “endangered public company.”

Yes, endangered. The number of public companies has declined 37% since 1997. The number of IPOs has dropped from 311 annually before 2000 to 99 the past decade. Meanwhile, the smart CEOs and the Super Rich are “going private,” to avoid government red tape restricting capitalism.

Reuters Over at BusinessWeek they’re warning investors that the growing number of “cutesy mascots” is a dangerous reminder “of the dot-com boom’s irrational exuberance.” They’re also red flagging new reports that “more Chinese investors are betting on U.S. start-ups.” And feeding the flames.

What’s going on? Facebook’s in trouble, that’s what. Now in the crosshairs of public scrutiny, everybody’s taking potshots. And the warnings are just beginning:

(Excerpt) Read more at marketwatch.com ...


TOPICS: Miscellaneous; Unclassified
KEYWORDS: economy; facebook
The hype was ridiculous! All those instant millionaires had to sell to someone on Friday...John Q. Public stepped right up!...
1 posted on 05/22/2012 7:36:05 AM PDT by AngelesCrestHighway
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To: AngelesCrestHighway

Wall Street’s term for retail investors is ‘dumb money’.


2 posted on 05/22/2012 7:41:56 AM PDT by thethirddegree
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To: AngelesCrestHighway

Does anyone really care about Facebook’s finances except those who got suckered this week. The “owner” and his insiders got their money plus. At least they’re happy.


3 posted on 05/22/2012 7:43:27 AM PDT by freeangel ( (free speech is only good until someone else doesn't like it)
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To: freeangel

I’m glad I missed that boat...


4 posted on 05/22/2012 7:45:01 AM PDT by AngelesCrestHighway
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To: AngelesCrestHighway

I guess Mark Suckerberg is crying all the way to the bank..............


5 posted on 05/22/2012 7:52:54 AM PDT by Red Badger (Think logically. Act normally.................)
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To: AngelesCrestHighway

Exactly! How stupid did you have to be to buy Facebook shares on the day of the IPO? Who didn’t know the price would be inflated?


6 posted on 05/22/2012 7:54:54 AM PDT by Georgia Girl 2 (The only purpose of a pistol is to fight your way back to the rifle you should never have dropped.)
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To: AngelesCrestHighway
I am by no means a savvy investor, but even I could see that the whole Facebook IPO was way, way over hyped and the share prices just paralleled the hype. That too seemed obvious.
7 posted on 05/22/2012 7:55:34 AM PDT by Obadiah (2008: Hope & Change -- 2012: Fear & Retribution)
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To: thethirddegree

Wall Street will never change. Sounding like the old pump and dump routine to me...


8 posted on 05/22/2012 8:02:52 AM PDT by AngelesCrestHighway
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To: AngelesCrestHighway
As long as no tax payer money is involved, I don't care.

9 posted on 05/22/2012 8:02:52 AM PDT by BitWielder1 (Corporate Profits are better than Government Waste)
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To: BitWielder1

I agree. I don’t care but it’s buyer beware...


10 posted on 05/22/2012 8:04:00 AM PDT by AngelesCrestHighway
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To: AngelesCrestHighway
[Could Facebook be a] Global economy-killer? Yes...

...Yes folks, Facebook is that dangerous to our economy and to the global economy.

Oh, Bull$4!!. Obozo is far more dangerous. Indeed, a President with even a basic understanding of Econ 101 could turn this whole economic engine around in a heartbeat. (Gees, almost any of us could take a four year nap and do a better job of running the country.) If stupid is reelected (I'd worry about that NC teacher reading this, but I'm not sure she can read), I pray for this Republic.

11 posted on 05/22/2012 8:10:11 AM PDT by econjack
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To: AngelesCrestHighway

Tulip bulb prices got run WAY UP before they crashed. Facebook never got that chance...


12 posted on 05/22/2012 8:12:29 AM PDT by null and void (Day 1218 of our ObamaVacation from reality [and what dark chill/is gathering still/before the storm])
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To: null and void

who knows...$44 dollars a share may have been way up...we shall see


13 posted on 05/22/2012 8:14:52 AM PDT by AngelesCrestHighway
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To: AngelesCrestHighway
[Could Facebook be a] Global economy-killer? Yes...

...Yes folks, Facebook is that dangerous to our economy and to the global economy.

Oh, Bull$4!!. Obozo is far more dangerous. Indeed, a President with even a basic understanding of Econ 101 could turn this whole economic engine around in a heartbeat. (Gees, almost any of us could take a four year nap and do a better job of running the country.) If stupid is reelected (I'd worry about that NC teacher reading this, but I'm not sure she can read), I pray for this Republic.

14 posted on 05/22/2012 8:16:17 AM PDT by econjack
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To: econjack

Agree with your post.


15 posted on 05/22/2012 8:17:10 AM PDT by pieceofthepuzzle
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To: AngelesCrestHighway

Surprise, surprise. Facebook makes no money and someone pays $45.00 a share to say they own Facebook.

Today Facebook drops to $30.00 a share and that person who paid 45 bucks just got a major league haircut.

Fools are still being born every minute.


16 posted on 05/22/2012 8:19:28 AM PDT by Presbyterian Reporter
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To: econjack

Sorry for the double-post.


17 posted on 05/22/2012 8:22:03 AM PDT by econjack
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To: BitWielder1
As long as no tax payer money is involved, I don't care.

Let's just hope that Morgan Stanley (the underwriter for the IPO) doesn't need a bailout!

18 posted on 05/22/2012 8:24:12 AM PDT by Tallguy (It's all 'Fun and Games' until somebody loses an eye!)
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To: Presbyterian Reporter

Ditto...


19 posted on 05/22/2012 8:34:34 AM PDT by AngelesCrestHighway
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To: AngelesCrestHighway

Often stocks are valued by popularity, as if they were in a voting machine.

Later, reality sets in, and the value is based on earnings; a weighing machine.

The wizard of Omaha, Warren Buffet said this.

Facebook is makeing the transition. A little quicker than usual.


20 posted on 05/22/2012 8:38:37 AM PDT by cicero2k
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To: AngelesCrestHighway

Freepers on Google back in 2004:

http://www.freerepublic.com/focus/f-news/1125573/posts


21 posted on 05/22/2012 9:35:40 AM PDT by free me (heartless)
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To: AngelesCrestHighway

Its an $8-$10 stock at BEST, and that’s only if they figure out a way to make money off mobile, which they haven’t yet.

The very idea this turd was worth $38 was ludicrous on its face.

Any institutional investor who bought into this, should be summarily fired. Anyone with money in a fund where a manager bought this turd should be pulling their money out immediately.

What idiotic world view lets you take a company with a total of $4 BILLION in revenue, and $1 Billion in profit, is worth $80-100 BILLION especially one who’s modest $4 Billion in revenue is likely to SHRINK as users move to mobile and they have currently no idea how to many any money off of mobile.

Yes, they have a huge subscriber base, and its a company that can be profitable, but that profitability doesn’t remotely justify the stock price.

Based on a 20 times P/E which, even that is higher than Google, FB is worth $8 a share or so at best.


22 posted on 05/22/2012 9:43:23 AM PDT by HamiltonJay
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To: AngelesCrestHighway
The author of this piece of crap is an assclown. I offer the following as evidence:

You think I’m kidding? Not one bit. In fact Facebook is now one of my top-12 economy-killing triggers, any one of which could ignite a firestorm. These include: euro zone ills, overpopulation, China, climate crisis, Peak Oil, Fed’s cheap money, 2012 elections, austerity vs growth, high-frequency trading, extreme capitalism, and the Black Swan nobody ever sees coming till it hits, you know, a trigger like the 1914 assassination of an unknown archduke that ignited a world war.

That's right...this nitwit sees climate change, over population, Peak Oil and Facebook as world enders. Dope.

23 posted on 05/22/2012 9:52:27 AM PDT by pgkdan (ANYBODY BUT OBAMA!)
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To: Presbyterian Reporter

Facebook isn’t worth $4 a share with the amount of shares they have out.

Also, Facebook peaked a couple of months ago. If you take out the fake accounts and cheater accounts, I would venture to say that there are maybe half the advertised audience.


24 posted on 05/22/2012 2:54:46 PM PDT by willyd (Opinions are like @holes, everyone has one)
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