(Second ofÂ five articles on monumental frauds.Â The first dealt with what is probably the mostÂ fraudulent piece of legislation in American history, the Affordable Care Act, better known as the ObamacareÂ abomination. Â [http://www.genelalor.com/blog1/?p=26099]Â Â Parts Two though Five deal with lesser but no less fraudulent enterprises, Facebook, Google, the Washington Post, and the United Nations.)
The authoritative Tech News World said it and substantiated the charge in May, based on the company’s deceptive revenue, profit, advertising, and user reports.Â Rob Enderle concluded his “Facebook Is a Fraud” piece by writing, “I think (Mark) Zuckerberg’s going to learn the Bernie Madoff lesson–that taking advantage of trust has a very high cost at the CEO level.”Â (http://tinyurl.com/7ddd44x)
However, that betrayal of trust goes far beyond manipulating numbers.
Originally planned by Zuckerberg and threeÂ fellow Harvard students as a website designedÂ to identify college hotties for horny, Ivy League lechers,Â Facebook has beenÂ in business forÂ some eight years.Â Â DuringÂ that briefÂ time itÂ has beenÂ beset byÂ various lawsuits, minor and major scandals, yet now claims almost a billion members worldwide.Â
Thanks to its recent Initial Public Offering, Facebook has made Zuckerberg a multi-billionaire and dozens ofÂ his faithful employees multi-millionaires, which is a good thing, a classic American success story.Â
A success story with noticeable warts.Â
Â In May 2012, 28 year old Zuckerberg finally decided to take his (allegedly) stolen enterprise publicÂ with an IPO offering price of $38. andÂ valued FacebookÂ at an historically high $104 billion.Â (EberlyÂ suggests its actual value is closer to .0001 of that figure.)Â Â
Greedily dreaming of getting in on the ground floor ofÂ an anticipated twenty-first century version of Microsoft and Apple, tens of thousands of investors and speculators bitÂ on the over-priced, over-valued Facebook at $42.Â
Most were bitten on their financial asses by theÂ realities of how things really work in theÂ cut-throatÂ financial world.
Except for favoredÂ banks and Wall Street insiders which were able to buy in at the IPO asking price, average investors and speculatorsÂ lost money big and small time depending on their level of trustÂ when FB stock went nowhere and, two months after itsÂ initial offering, was selling on NASDAQÂ for $31.10 aÂ share.Â
So much for hype andÂ overvaluation, so much for trust.
Katherine Losse served five, earlyÂ years at Facebook and toldÂ all in her book, “The Boy Kings: A Journey into the Heart of the Social Network.“Â
The Boy Kings provides much-needed insights onÂ the inner workingsÂ at Facebook.com, insights thatÂ reveal Zuckerberg’s revolutionary brainchild is nothing moreÂ than a sleazy, money-making operation conducted by rich, arrested-development, college kids who never grew up.Â Â
Losse describes lavish parties, secret customs, andÂ sexual discrimination within the Facebook “fraternity,”Â all of which seem like normal and typical activities in internet start-up outfits but which should shock most Facebookers who naively thinkÂ Facebook isÂ simply an avenueÂ for free, interactive socialization and for posting largely sillyÂ commentaryÂ run by like-minded people. Â Â
There are much worse frauds than Facebook out there.Â Obamacare, Google, WaPo, and the U.N. are closer to the top of the fraudulent heap.Â Still, when we’re talking about where my granddaughters post their thoughts, I’d prefer Facebook.comÂ were aÂ more reputableÂ venue.Â Â