How long will we keep getting Zuckered?
By Lynn Parramore
May 24, 2012 | In the wake of the JP Morgan blow-up and the Facebook debacle, Americans are contemplating the stock market with a mixture of alarm and disgust. Both are justified. In world of high-speed trading and other manipulations, the ordinary investor who wants to make money over the long haul can easily get screwed by those playing a short-term game.
On May 18, Facebook went public to relentless mainstream media cheers. As of Thursday, May 24, the stock was down 15 percent
of the initial offering of $38 per share. The Internet bubble of
1998-2000 gave us a brutal lesson in what happens when investors shell
out gigantic sums for unproven companies. But never mind. Those
“rational” creatures neoliberal economists are always going on about --
you know, the kind that operate on “perfect information” -- did what
actual humans tend to do. They got overly excited, followed the herd and
found out that their information was far from perfect.
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