Facebook And Fiat

…FACEBOOK is really a fiat stock. Like fiat money, there is nothing behind it, but hype and perception. Most of the assets are effectively leased. It makes nothing; it capitalizes on providing a service: it facilitates making the most personal information about its users available to the world! For this service, it sells web page ads. But the ads are supposed to generate bucks for the advertisers — last week we learned that General Motors pulled the plug on their ads because they were not generating the sales, other companies will shortly follow.

Internet companies have a long history of rapid booms and busts. Remember MySpace, a social networking website that Rupie Murdock’s NewsCorp bought it at its zenith six years ago for $580 MILLION. Last year it was “able” to unload it for $35 MILLION…


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