my plan is to do a little sight seeing here at home until the stock and bond markets settle down/ part 3
fiction
Edward w Pritchard
repost
Twitter is out of it's lock up period today meaning insiders can sell, sell , sell shares they got for next to nothing for being on the " inside" of things.
As goes these "new age" stocks so goes the anemic "real" jobless economy so it seems.
Here's what we wrote before:
All
these mobile app and ghost in the machine companies like Facebook,
Pandora, Groupon, Twitter and LinkedIn have got me nervous. Does anyone
do any actual business anymore?
In the 1955 movie "
We're No Angels" Humphrey Bogart plays the convicted Accountant who
helps the nice family he stays with while he hides out from the guards
at Devil's island, where he is imprisoned for stock fraud. When asked
why and how he cooks the books and the balance sheets for the companies
he represents suave Humphrey Bogart dryly says " [there are] no
factories just stockholders".
That's how these multi
billion dollar market cap mobile app ghost in the machine new age
companies seem to me, " no factories just stockholders". Not enough hard
assets to justify the elevated stock prices and market capitalizations.
The new social media companies attract large groups of ordinary
followers into a sort of club and then the new generation of social
media companies propose as their business model to refer their club
members to other potential businesses such as dry cleaners, restaurants
and to link job seekers with job providers. Membership and referral fees
finance the entire endeavor.
Problem is the club
members herded together into the clubs and social networks are having
difficulty in starting their economic lives because jobs are scarce. For
a hundred reasons real factory jobs no longer exist much in
America. The club members are under employed and tapped out.
Does
anybody do any real business in America anymore? Don't ask me, I post
on a blog while I patiently wait for the imaginary advertising revenues
to begin to role in when I attract an imaginary network of followers.
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