One Interpretation of Facebook's Loss of $150B in Two Hours

Facebook lost 150 Billion $US in two hours on Wall Street which, we are told, is the single largest loss of a company on Wall Street in history.  Whether or not that is true, it is natural to speculate what was going on in the minds of investors.  Obviously, they were responding in part to the loss of users, and other issues involving privacy which would result in lower revenues from advertising. But what does it really mean?

Well, one thought is that Wall Street had responded well in the past to Facebook's strategy of exploiting its users in the most crude and vulgar ways, working hand in hand with foreign powers to destroy democracy by emphasizing contradictions, spreading right wing propaganda, and assisting polarization.  When, unfortunately, Facebook was identified as a primary agent of Russian destabilization and had to start toning back its worst and most shallow exploitation in order to keep users and avoid regulation, Wall Street naturally and regretfully had to downgrade FB's value. It just wont be like the good old days, at least not for a while. Still Facebook will try to find more subtle ways to exploit the people who have, in the past, trusted them, so all is not lost and Facebook still retains tremendous value.

[Shel Kaplan reminds me that this apparent loss in value is actually just appearance, that FB's long term value has been monotonically increasing for years. So this apparent setback may be nothing more than a tempest in a teapot and a headline created by shallow analysis. So what else is new?]

My Letter to the President of the United States Requesting a Bailout

As a few of you know, I have been working with my representatives in Washington in order to prepare the way for a government bailout of one area of computer animation, research and production, in this country.  The particular bailout that I have been working for is, of course, for myself, but I have no doubt that once this first effort is approved, that others will be able to apply as well.  The following is the letter that was mailed to President Obama.

_____________________________________________________________________

Michael Wahrman

Rancho Rincon del Diablo, California 92026

michael.wahrman@gmail.com

President Barack Obama

The White House

1600 Pennsylvania Ave, NW

Washington, DC

December 9, 2013

Dear President Obama,

I have hesitated writing this letter for many years now but recent events have forced my hand. I hope you will understand.

Not to beat around the bush, so to speak, I have decided to request a government bailout.

My circumstances are that having done many years service, and having helped to create a billion dollar industry, computer animation, I find myself unemployed due in part to government policies (policies of globalization and of other government subsidies which our government does not protest). There are other reasons as well, but the impact of government action and inaction is certainly significant. Because of this, my financial well being has been severely damaged.

But I have hope. The US Government had no problems bailing out the malignant and incompetent financial industry in their time of need a few years ago, and I am neither malignant nor incompetent, merely guilty of misplaced enthusiasm and incorrectly assessing risk, just like Wall Street.

And lets be honest here, the US Government and society encourages people to be entrepreneurial without emphasizing the terrible risk of failure and the financial implications thereof. It seems only fair that the Government should therefore pick up some of the costs of risk just like they do for large corporations when it is convenient.

I know that times are tight in Washington these days, what with Sequester and the right wing Republicans out of control and on the warpath, but I feel certain that my request is so just and reasonable that you can find the money out of one of your discretionary funds. I feel certain of it.

So shall we say ten to twenty million $US? Too little and we might have to come back a second time which would be annoying.    Too much and people would think we were being extravagant. Lets split the difference and go for a clean $15M US. What do you think?

I know you are very busy, so feel free to assign the details of this request to one of your assistants for the details of the money transfer and other paperwork issues.

Of course, if you have any questions, feel free to ask. Probably email is the best way to reach me.

Congratulations on your reelection, keep up the good work.   By the way,  my family has been loyal Democrats for at least three generations.

                                                    Sincerely,

                                                   Michael Wahrman