This is why Wall Street is doomed

And maybe the whole stupid economy as we know it.

“Just to play a concise version of the parlor game that went around the stock markets, Facebook’s market value at $104bn – with $3.7bn of profits – would have made Facebook worth more than: internet megastore Amazon.com; global beverage behemoth PepsiCo; petro-giant Total; BHP Billiton; and McDonald’s. It was not far off the valuation of JP Morgan Chase, an international bank with $1tn in assets. Over the previous weeks, one brief glimpse of Mark Zuckerberg in a hoodie, heading to an investor meeting, launched the kind of press coverage we’ve hardly seen since the Beatles. JP Morgan itself, one of the company’s banks, flew the Facebook company flag next to the stars and stripes of the United States, and papered its headquarters with Facebook signs.”
Facebook IPO: An Anatomy of Wall Street Overreach, by Heidi Moore, Alternet, May 18, 2012 (via Skippy)

Facebook exists at the whim of its users, so what, other than data that can get stale, does it have? Does it make anything? Does it have renewable resources? Isn’t it just an overpriced fad? It’s also like the Pope. How many battalions has Facebook got? Google makes a fortune in ads; Amazon gets users to make it’s content and takes a cut selling it on Amazon. What lasting thing does Facebook do that makes it worth all this money? They’re good at playing suckers, I guess that’s something.

And this is what our stupid financial sector is betting billions on? These idiots are going to sink us all. No wonder we’re in a liquidity trap. No one but a fool would bet anything in an economy run by fools. Too bad the rest of us suffer because of these stupid bastards. Gah!

Yes, the tax windfall for California will be nice, but it’s a salve, not a solution. Sigh. Oh well, onto the next crisis.

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