Facebook: Noxious Fruit of the Fake Economy
Facebook: Noxious Fruit of the Fake Economy by Bill Bonner – Bonner and Partners
Yesterday, as predicted by after-hours trading, Facebook lost $122 billion in market value, more than the GDP of 145 of the world’s economies.
The Zuck alone lost nearly as much as Iceland’s annual GDP.
USA Today was on the story:
Facebook CEO Mark Zuckerberg lost more than $15 billion in stock wealth Thursday as investors dumped shares after the social network warned of slowing sales growth.
The massive one-day loss pushed the 34-year-old out of the top 5 in Forbes’ list of the world’s billionaires as he drops from the #4 spot to #6 with a net worth of $67 billion.
Morocco, Venezuela, Ukraine, Ecuador, Angola, Guatemala – none of them have an annual GDP of more than $120 billion. And there are about 140 even smaller economies.
One hundred and twenty billion dollars is enough money to make 120,000 millionaires. That’s more millionaires than you can find in the entire state of Indiana, for example.
Our dots to connect today: What happened to the money? Where did it go? Are there 120,000 ex-millionaires singing the blues?
We will also wonder what it means. Is it the beginning of a trend? In 2000, two big tech giants – Intel and Microsoft – each registered big single-day losses, too… $90 billion and $80 billion, respectively. What followed was a long period of hand-wringing and finger-pointing, with the Nasdaq down 80%.
What’s ahead now?
We’ve been spending less time connecting the dots this week than usual. Instead, we’ve used the sunny afternoons to connect stones.
We then found ourselves with a pile of stones on the ground, which we had to levitate, putting them back in place before we could begin framing out the roof. It took us all week to do the masonry work. We’ll do the framing this weekend.