I remember in 2012, following the botched Facebook IPO and the stock’s subsequent decline, the liberal media was certain that web 2.0 had burst, their elation breaking through their veneer of journalistic impartiality as Facebook stock fell from its IPO price of $38 to as low as $20. At last for the left, after years of reading zerohedge, voting for Obama twice, Ron Paul, and the failed OWS protests, the chickens had come home to roost. Web 2.0 and their technocratic elite would finally be pulled to earth by the weight of their hubris to face the ‘trying times’ that normal people face. But by the turn of the new year, 2013, it was all over – the left’s hopes and dreams of another 2000 & 2008 tech and stock market crisis up in smoke as Facebook zipped past its IPO price following a blowout earnings report that left the lib’s ‘Facebook can’t monetize mobile’ narrative in ruin. The S&P 500 surged 30% that year. Silicon Valley home prices went into the stratosphere, Tesla gave the NYT the finger as its stock catapulted from $40 to $150 in the span of just three months, and Snapchat was slapped with a $4 billion dollar valuation (on its way to $50 billion soon).
So much for Facebook being an ‘obvious’ bubble at $38; it’s now at $83 on its way to $150 and beyond. Facebook may be worth $2 trillion by the end of the decade. These bubbleheads are worse than broken clocks in that the are never right. One shouldn’t waste their time entertaining this bubble mysticism, although I’m guilty because refuting bubbleheads is one my favorite types of posts. The tape matters. Reality matters. People, funds, institutions want ‘in’ on Facebook, Snapchat, Tinder and Uber – not only because of hype, but strong underlying fundamentals of the US economy and the these web 2.0 businesses. The 90’s tech bubble was mostly hype, compared to today where the PE ratio of the Nasdaq is less than 20, versus over 400 in 2000!
The reality is that there is absolutely no bubble in technology, but the left is so wrapped up in their belief and desire to see the economy and smart people fail and web 2.0 to collapse, that they are blind to facts. In 2008 the left wanted the financial system to fail to get Obama elected, now they want Silicon Valley (a high-IQ capitalist success story) to become a low-IQ dump like Detroit or Ferguson, and for Facebook and Snapchat (two examples of high-IQ web 2.0 free market capitalism success stories) to become Myspace (a failure). From raising taxes, to raising interest rates, to more regulation, the left supports anything that causes smart, talented, rich people to become poorer and less powerful. Normal, sane people celebrate success. The left, being the party of jealousy and envy, not only seeks failure – but actively instigates it – to bring society down to their level.