people will billions of dollars were taking advice from those close to their circle as well to buy in. This is bigger than just networks...it shows how delusional so many of us are. Most people are going to make the mistake simply based on hype, but the fact that many "experts" were also giving this much hype to something IS a problem. If Fox or NBC would have come out against Facebook they would have looked like geniuses because people were so convinced that this was the next coming of Google.
I am not trying to "save" anyone, people just annoy the fukk out of me. I am willing to bet that if I were to ask for an honest opinion from a local scottrade office I would have probably been told that it was a good investment. I truly believe we are in that much trouble as a whole.
Don't try to come in here and act like if it was the majority that saw facebook as a negative from the jump. That CLEARLY was not the case.
The stock had a weak performance from the onset of the IPO. The market, which is the majority, already knew what was going from the start.
People do a lot of dumb things. The Scott trade clerks aren't financial geniuses and neither are these financial "advisers". People really believed that 30% annual returns on property would continue indefinitely.
Look at how many people play Lotto scratchers, or come out to play lotto when the jackpot is above a certain threshold as if the odds somehow change when the jackpot is larger (the game is more fair certainly).
I've noticed that the toll lanes and car pool lanes are always more empty then they should be during the listed "open" times. You know?
That's why I can't really buy into Economics. People aren't rational resource optimizers. Some people are, some are better than others and some aren't good at all. Moreover, information isn't disseminated in a equal or efficient way, even in the information age. Information is easily obtainable, but ignorance is still the norm. Why is that? i don't know.
