(There seems to be lots of use for the word meltdown these days.) I watched in disbelief the building hoopla last week over the Facebook “initial public offering.” That’s easy to say now, I guess, with the stock seemingly on its way to a long and deep decline, but the reason I didn’t comment in advance is because I felt I’d said it all over a year ago about the decline of MySpace. Some of the words that look so amazingly wise in hindsight are these:
What is being sold — and this goes for Facebook and Twitter and all the current crop of favored online things — is lighter than air. Heavens! We might come up with some cool new twist on social networking at THE CINCH REVIEW next week, and millions of Facebook users would simply forget that boring old site and spend their time here instead. Wham! 50 billion dollars gone. But it was never there to begin with. Was it?
Spot on. If you want advice on what not to invest in, look no further than THE CINCH REVIEW.
On the other hand, if I had any idea what you should invest in, I guess I would be too busy sipping martinis in Hawaii to write these stupid blog posts.
The interesting thing, it seems to me, about the stories surrounding the crashing Facebook stock price is that blame is being put on everyone except the investors themselves.