Alibaba valued at $231.44 billion after debut day: thanks to ZIRP lending by the Federal Reserve and EU banks, we have lunacy in stock markets again. There are only a billion Chinese and I seriously doubt each will spend $200 at Alibaba. That is, we can see the true value of something in sales this way and it is impossible for this ridiculously overbid stock to ever keep its promise of future trading value.
World’s Richest Rise $7 Billion as Alibaba Surges on IPO – Bloomberg: the bank bail out certainly is helping the richest people especially speculators. Meanwhile, debts on the poor rise and rise especially college debts which is destroying the present generation of students. The trillion+ student debt has made colleges flush with easy money but it is a huge black hole of debt that will haunt the younger generations for their entire lives making them much poorer overall than previous educated generations.
How an online sales site nearly identical to all the others, make money in this debt raddled world baffles me. From the Bloomberg article:
“He is the most charismatic CEO of a major tech company on the globe right now,” David Kirkpatrick, chief executive officer of Techonomy Media, said in a phone interview from his New York office. “He has a uniquely public persona that has benefited Alibaba tremendously.”
Aw, a flim-flam carney man! No, that isn’t what is going on. Speculators see that Alibaba is ‘growing’ so they want to jump aboard this gravy train only now it is greatly overloaded and will derail. But they never learn from the past. It is all about herd instincts.
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