4 ms·

I'll say it again, Facebook is making ephemeral cash flows which bolster more investment and thus attention and thus more ephemeral cash flows. Facebook is a p

by ljlolel 16y ago

I'll say it again, Facebook is making ephemeral cash flows which bolster more investment and thus attention and thus more ephemeral cash flows. Facebook is a ponzi scheme: http://www.jperla.com/blog/post/facebook-is-a-ponzi-scheme http://www.jperla.com/blog/post/facebook-is-a-ponzi-scheme .

fleitz 16y ago
Warren Buffet became one of the richest people in the world based on ephemeral cash flows. (See Berkshire Hathaway and buying for cashflow) You realize that the amount of cash printed is insufficient to even pay back the US Debt. The economy for the most part is a ponzi scheme. It will only stop working when the birth rate slips below the death rate, and at that point humanity is on a timeline. As Keynes said, 'in the long run we're all dead'. The primary question with Facebook is how much more revenue they can suck up. Thats what's driving the crazy valuations and so far they haven't stopped booking revenue.
- ajju 16y ago
  Warren Buffet's cash flows are from blue chip insurance companies. If the allegations in the article are true, the cash flows mentioned are far more ephemeral and far less reputable.
- DevX101 16y ago
  See below for population distribution of the U.S. http://en.wikipedia.org/wiki/File:Uspop.svg http://en.wikipedia.org/wiki/File:Uspop.svg The people at that bulge in the middle are now in their late 50s. When they start to die and sell their assets all at once, we're going to see a major devaluation in the stock market, and real estate.
  - beoba 16y ago
    They won't be selling everything at once; it'll be distributed over 30-40 years. They don't have that much saved either: http://www.bargaineering.com/articles/working-americans-have-almost-no-retirement-savings.html http://www.bargaineering.com/articles/working-americans-have... And, on top of all that, following the hump is another (albeit smaller) one filled with their kids.
dangrover 16y ago
It reminds me a little bit of PG's essay on Yahoo: http://paulgraham.com/yahoo.html http://paulgraham.com/yahoo.html I don't think it's quite as bad or blatant though.
- ljlolel 16y ago
  Yea! I saw pg's essay posted after I wrote this, and I noticed that he makes the same kind of argument. He calls it a pyramid scheme, but a ponzi scheme is a closer metaphor.

by ljlolel 16y ago

fleitz 16y ago

Warren Buffet became one of the richest people in the world based on ephemeral cash flows. (See Berkshire Hathaway and buying for cashflow) You realize that the amount of cash printed is insufficient to even pay back the US Debt. The economy for the most part is a ponzi scheme. It will only stop working when the birth rate slips below the death rate, and at that point humanity is on a timeline. As Keynes said, 'in the long run we're all dead'. The primary question with Facebook is how much more revenue they can suck up. Thats what's driving the crazy valuations and so far they haven't stopped booking revenue.

ajju 16y ago
Warren Buffet's cash flows are from blue chip insurance companies. If the allegations in the article are true, the cash flows mentioned are far more ephemeral and far less reputable.
DevX101 16y ago
See below for population distribution of the U.S. http://en.wikipedia.org/wiki/File:Uspop.svg http://en.wikipedia.org/wiki/File:Uspop.svg The people at that bulge in the middle are now in their late 50s. When they start to die and sell their assets all at once, we're going to see a major devaluation in the stock market, and real estate.
- beoba 16y ago
  They won't be selling everything at once; it'll be distributed over 30-40 years. They don't have that much saved either: http://www.bargaineering.com/articles/working-americans-have-almost-no-retirement-savings.html http://www.bargaineering.com/articles/working-americans-have... And, on top of all that, following the hump is another (albeit smaller) one filled with their kids.

dangrover 16y ago

It reminds me a little bit of PG's essay on Yahoo: http://paulgraham.com/yahoo.html http://paulgraham.com/yahoo.html I don't think it's quite as bad or blatant though.

ljlolel 16y ago
Yea! I saw pg's essay posted after I wrote this, and I noticed that he makes the same kind of argument. He calls it a pyramid scheme, but a ponzi scheme is a closer metaphor.