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Some more statistics: - Active Facebook users: 800,000,000 - Price per user at current valuation: $125/user - Annual profit per user: $1.20 The late 19

Some more statistics: - Active Facebook users: 800,000,000 - Price per user at current valuation: $125/user - Annual profit per user: $1.20 The late 1990s saw enormous growth in the tech industry, as have the past several years. But in contrast to what the article's author would like to believe, growth and bubble are not mutually exclusive conditions. In fact, growth begets bubble: One easy way for businesses in a sector to become overvalued is as a result of the hype that tends to accompany periods of growth.

stefanobernardi 15y ago
I agree that growth and bubble are definitely not exclusive and that the former is usually what triggers speculation and ends up in the latter. I also think that right now we're in a phase of growth, without financial speculation. It might be very well possible that this will kick in pretty soon, but I'm leaning towards the idea that it's still going to be difficult given the hard time that their public stock is having. (btw you miss 3 zeros on your FB active users).
- bunderbunder 15y ago
  Thanks. Fixed & double-checked the other numbers.
- deleted 15y ago
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- R_Symtex_II 15y ago
  I also think that right now we're in a phase of growth, without financial speculation. Then you're aren't paying close enough attention to who is driving this 'illusion' of growth. Goldman Sachs, Morgan Stanley, and JPMorgan Chase are underwriters for the FB IPO (and likely its farce of a valuation) who all have access to 0% interest loans for their respective speculative practices. And now with the Zynga illegal early sell-off ordeal going unabated its really setting the tone for what you can expect from it, too. Like I said, its either you aren't paying close enough attention or you simply do not know what financial speculation is... much less the obvious machinations (HFT) they use to create them in the first place. In summary fiat (the illusion of money) and its very nature introduces a layer of indirection [sic] into the system which can mean that growth is slow even when technological conditions promote in some sectors. Corrected that for you, the consequences of what you have described can only come as a consequence of abandoning the principle of Money in exchange of its illusion (fiat currencies) which enable massive credit expansions. Also the term you are looking for is malinvestment to describe this practice in a market--it isn't 'indirection' to those who VASTLY profit from it. Think about the large asset and wealth confiscation that has taken place as a result of the mortgage crisis in the US and EU. It's different this time. Ha! It always is.

stefanobernardi 15y ago

I agree that growth and bubble are definitely not exclusive and that the former is usually what triggers speculation and ends up in the latter. I also think that right now we're in a phase of growth, without financial speculation. It might be very well possible that this will kick in pretty soon, but I'm leaning towards the idea that it's still going to be difficult given the hard time that their public stock is having. (btw you miss 3 zeros on your FB active users).

bunderbunder 15y ago
Thanks. Fixed & double-checked the other numbers.
deleted 15y ago
[deleted]
R_Symtex_II 15y ago
I also think that right now we're in a phase of growth, without financial speculation. Then you're aren't paying close enough attention to who is driving this 'illusion' of growth. Goldman Sachs, Morgan Stanley, and JPMorgan Chase are underwriters for the FB IPO (and likely its farce of a valuation) who all have access to 0% interest loans for their respective speculative practices. And now with the Zynga illegal early sell-off ordeal going unabated its really setting the tone for what you can expect from it, too. Like I said, its either you aren't paying close enough attention or you simply do not know what financial speculation is... much less the obvious machinations (HFT) they use to create them in the first place. In summary fiat (the illusion of money) and its very nature introduces a layer of indirection [sic] into the system which can mean that growth is slow even when technological conditions promote in some sectors. Corrected that for you, the consequences of what you have described can only come as a consequence of abandoning the principle of Money in exchange of its illusion (fiat currencies) which enable massive credit expansions. Also the term you are looking for is malinvestment to describe this practice in a market--it isn't 'indirection' to those who VASTLY profit from it. Think about the large asset and wealth confiscation that has taken place as a result of the mortgage crisis in the US and EU. It's different this time. Ha! It always is.