When the excitement of the public offering of shares broke those who were tech savvy pondered exactly what was the 'bottom line.'
Facebook is a social network. Millions of people log in to waste time. They post images, express their opinions, play games, and waste time. They produce nothing; unless divorces, lawsuit, arrests and crimes are a product.
Unlike Iphones or microwaves, which are physical products, or hedge funds and investment schemes which exist in the real world with real money, Facebook has no economic base.
Yes, there are millions of people who can somehow be drained of cash in some manner, but the how is rather nebulous.
The ads are ignored, and there is no reason to pay for anything as one didn't join Facebook to take courses, buy products, or gamble.
The tech savvy population might have wanted to buy a share for fun, but certainly wouldn't be investing their life savings.
Those who were stalled on the side of the great Cyber Highway were confused by the hype, and went to buy as many shares as they could, assuming they would 'own' a piece of the Internet.
Just as in early days Techies would make the bag by plugging in computers, turning on surge protectors or adjusting the contrast button, as those who called them were clueless, today that same mentality moves onto Wall Street where the infamous dot.com bust has long been forgotten.
Many recall all the dot.coms which sprang up, sucked cash, and disappeared. Of course, those that recall were either the tech savvy who had watched from a distant or the tech stupid who lost their homes.
In 2008 there was another crash which bankrupted who existed to prove the fact that a fool and his money were soon parted.
In 2012, Facebook came on the market with shares offered at $38 each. Thirty Eight Dollars for a share in what?
Those who knew what Facebook was would sooner invest in Texas Hold 'Em. Those who knew nothing except that there was a lot of hype invested all they had only to see the stock dip by 11% and Morgan Stanley, which underwrote the offer, buy up the shares at $38 each to prevent further slippage.
The Tech Fools began to appreciate they had lost their money as surely had they given it to Bernie Madoff. Some hired lawyers.
A week after the launch the lawsuits were filed.
And Facebook continues to slip.