Twitter #blabbergasm explodes as shares soar close to $50 on NYSE A profit-starved Twitter saw its shares debut on the New York Stock Exchange today with a price tag $45.10. The micro-blogging site, which earlier this week issued an explanation to would-be investors about what its service actually offers, set its initial public offering price at $26 last night. First indications from the …
Let's look at what we have here.
A company that has no tangible products has a share price that is at artificially high levels because it's trading on a market that is bouyed up by the continued "printing" of imaginary money (aka $1Tn per year of quantitative easing).
Why do I feel like I'm stuck in a gigantic game of monopoly, where the only losers are people with real, live, stuff you can touch?
The sad thing is that plenty of people are making plenty of money on this. But those of us trying to keep our distance from the whole thing are likely to find that our banks and insurance companies have "joined the game" for us. So we're likely to get just as shafted as the chumps who end up holding massively overvalued shares. Great. Can't wait.
The US recently changed the rules to make this kind of IPO even easier and the central banks keep up their easy money policy to stimulate demand because it is supposed to make us all feel more positive about the economy.
Mine's the one "This Time it's Different" in the pocket, ta.
You mean the life of your pension scheme is going to be really, really hard.
Ah thank you government for your easy money / low interest rates to kindle the economy ... and the continuing coverup of enormous debt holes (But deficits don't matter and we all owe it to ourselves, right? A bipartisan consensus...)
Gotta rewatch: Fear the Boom and Bust
I live in Europe and I am not in the IT. So my pension should not be affected. But when the bubble blows it is going to affect a lot of people.
The only thing this is going to affect me is that I won't be using Facebook, Twitter and such things. I expect Google, Apple and Microsoft to survive this (Google came into being after last bubble). But they won't be unaffected by this.
earlier this week issued an explanation to would-be investors about what its service actually offers
Now you'd have thought that, in this context, an explanation of how its service makes bucketloads of cash[1] would be more appropriate. I wonder why they didn't do that......?
[1] i.e. some reason why its shares would be more likely to hold their value rather than tank when the music stops.
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