Quote:
Originally Posted by Vexx
I firmly believe it is hype-flation as you say. Clueless investors are looking for the "last big Internet bubblet" and what do we have offered? A lame resume repository. I started to put in an resume entry and immediately the words "identity theft hell" came to mind. I will give it some points for *SO FAR* not suffering the fate of Monster.com (which has become a den of inequity, scum, and villainy).
The main thing giving it any legs is that the HR departments are drooling because it means they have even MORE time to sit around eating donuts and expanding their huge butts rather than doing proper work supporting the hiring managers.
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There are people on this planet who have so much money, they simply do not know where to park it. Okay, thats not what is going on there... but I really wouldn't mind if it were just private finaciers who gamble on these stocks with their own money.
But typically you have all sorts of money sources for this pit... like hedge-funds or banks that are too big to fail. The game is who shoots faster (or rather backs out at the right time).
I imagine this to work like this: A small group of insiders try to attract a lot of public money. Now the public money won't come just by itself, it needs to be lured. So, the insider group takes their own considerable moneystock as a bait and generates demand out of (basically) nothing, just using their private money (if you did this game for some rounds you'ld certainly have the billions to generate that demand - it becomes easier the more money you can spend to make a nice bait).
Now, the public money will basically try to jump the bandwagon, hoping for profit taking. But of course most of them will loose much of their money (like in every lottery)... anyway, only the insiders know when they are going to back out with their bait, that has grown a lot in the process. And everyone who misses this point of no return is doomed to pay the big profits of the insiders. To cover the tracks a little bit, wait for a "good" reason to back out. Every quarter of a year you have a potentially good reason... e.g. the quarterly figures did not triple like expected (sarcasm intended).
Now a more perverted way to do this, is to be in a position where you can assign public/hedge-fund money to such honey pots. Lets say as a member of the steering committee of banks, funds... you name it. So, you assign the money that isn't yours to the honey pot and if somebody asks why, silence him with the latest profit ratings. At the same time you add your own money to the pot. Since you are well connected with your robber colleagues (they work in other banks/funds), you can set the right time to withdraw your own investment (you basically define your own culmination point of the bubble). This little trick allows you to shift large amounts of public money (thats not yours yet) to your own accounts. And on top of it you can claim bonus payments for the year where the bubble was still growing. You don't have to pay these bonus payments back next year, when the bubble bursts, thats the nice thing about it.
The only problem, you need to be well connected with the right people and have some 100 million or some billion dollars of cash on your accounts.