Facebook will crash to $3. How to survive 25 year depression.

Why Facebook is worth about $4.50, but will drop to $3. 

Facebook is over priced 100 times! The sheep currently value it at $230,000,000,000. It earns around $750,000,000 every 3 months. OK, scratch off 6 zeros from these numbers. You get $230,000 and $750.

Let’s say you knew someone with a “really great idea” and you gave them $230,000. And 3 months later, they said they had earned $750. Would you be happy about that? That is $250 per month profit, and you have $230,000 tied up with them. And they tell you “yeah but it is looking really promising for more profit in the future… blah blah blah”. Would you be excited about that? And if you wanted your money back, would you like to hear that “Well, uh, we’ve burned up around $30,000 in the past 3 months, so we can only give you back $200,000.” Would you be happy about that?  Maybe you would say, “Hey, I could easily make $250 per month with a little ice crea cart, working part time”.

Using “Facebook Math” you would have to be willing to pay $230,000 for an ice cream cart!!  Would you do that? Of course not. If you own Facebook shares, this is essentially what you are doing. Sell them, FAST!! Maybe, just maybe, the ice cream cart is worth $2,300, and that is being generous. How much would you pay for the ice cream cart in the photo? Maybe only half of $2,300? That is $1,150, or ONE TWO HUNDREDTH of $230,000. So actually, Facebook might be worth only ONE TWO HUNDREDTH of what the sheep think it is worth. SELL, SELL, SELL!!  

As the market goes down, it’s true value will be revealed to be about $4.50 per share. But the market will overreact, and it will go to about $3. Yes, THREE DOLLARS. A 25 year depression is coming. I will survive by making a small bit from the 60 to 70% of the population with jobs. It involves making very low cost bikini movies, which are sold as downloads. Those still working can afford to pay just 2 to 4 dollars for a movie. If you invest in my low budget bikini movies you can benefit too. Details here