Money for nothin’ – the new economy of Facebook

So Goldman Sachs decided to invest $50 million in Facebook. Plus the arrangements with other investors take the total up to around $450 million.

Okay, I’ll admit it – I am a Facebook Luddite. I tried it. I don’t get it. I probably need to spend more time on it, but because I already view Facebook as an enormous time-waster, well, that’s not gonna happen.

Even my Mom has a Facebook account. She’s the only reason I have one – she asked me to get it, and when your Mom asks you to get one, well……

But Facebook is supposedly valued at something like $50 billion. So the investment from Goldman and others is viewed as a way to increase both banking fees and the opportunity to mange Zuckerberg’s fortune and the fortunes of other Facebook executives.

And this is nothing new, apparently. Goldman wooed firms like Sears & Roebuck in 1910, and Ford in 1950, to be “friends” with their CEO’s for the same reason.

I guess I just wonder what the American economy is going to “make” now that most of our wealth is tied up in things like Facebook, and not in making real things that people can buy and use. And repair when they break.

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2 thoughts on “Money for nothin’ – the new economy of Facebook

  1. Interesting. I admit I have not followed the price although I just heard yesterday that FB was going to issue a new batch of stock priced between $28 and $35 a share.

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