Idiots and their money

  With all the fuss over the facebook IPO this morning it is clear a lot of people are idiots with their money. They are buying up something for a company that has no real business plan other than advertising and Zynga. Facebook has no real way to make money and yet because it is popular people are buying up the stock like crazy hoping that they will somehow use that vast user base to somehow have a revenue stream. That in turn, due to the dumb way the market acts, as long as it is what analysts expect will raise the stock price etc etc.

  The only people who will come out of this rich will be people who had an investment in facebook before the IPO. The founders, anyone with low priced options and the original venture capitalists. They now own shares worth far more than they "paid" for them and can sell them at a profit. Anyone just buying shares today is very unlikely to see any money.

  I can just think back to the heady internet bubble days around here. People were throwing money at companies just because they were "online". No valid business plan, no way to actually make a profit and any idiot was given a job just because the company needed people. The amount of money lost and people disrupted when it all came crashing down was astounding. I fear that history is going to happen again soon with all these new tech companies around here with so few of them making money. Just because something is cool doesn't mean it is profitable or going to still be around.

  Now if only people could send some of the money they are wasting my way I could find much more productive ways of using it. Like Lego for instance or new houses for my wife and I :| .