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I don't think Goldman's investment can necessarily be taken as a sign of their confidence in facebook's financials, or its future ability to justify its $50B va
by redthrowaway 16y ago
I don't think Goldman's investment can necessarily be taken as a sign of their confidence in facebook's financials, or its future ability to justify its $50B valuation. Rather, it should be taken as a sign of Goldman's confidence in their own ability to profit from the deal, both from the private $1.5B sale of stock, as well as its favoured position come facebook's inevitable IPO.
- danenania 16y agoExactly. Look no further than subprime if you doubt this. There is no group more expert at (knowingly) inflating a bubble for their own gain. And they take no risk because they get 0% loans from the Fed and are the definition of "too big to fail". This is dangerous behavior.