Friday, January 07, 2011

Doing God's Work on the Magic Sugar Mountain

Not plutocracy but plutocrosis:
With Goldman’s investment in Facebook, we have a front-row seat to the process by which Wall Street creates and inflates financial bubbles.
-- William Cohan on a scam (with Nigerian overtones).

P.S. The Economist notes:
at $50 billion Facebook looks rather expensive. If its sales really are $2 billion a year, that implies that Goldman and DST are paying 25 times current revenues for their shares. That would be a breathtakingly steep multiple, even by the giddy standards of the start-up world.

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