2. I cant feel sorry for the rubes that gambled on FB. It is so easy to bilk greedy people.
Wall Street is a gambling street. You place your bets and take your chances. The difference is that in Las Vegas, the odds are a lot better. I think it's about 95% on the dollar slots. That means if you bet long enough you will end up with 95% of your money. Not a good retirement plan. But, and I have no real figures, on Wall Street, I bet your odds are less than 50% against the "House". The House in Las Vegas is carefully controlled to keep them from bilking you. Not so on Wall Street where the House can manipulate the dice, slot machine, etc. Now some will argue that over the long haul Wall Street is a good "investment". What that means is that if the economy (nothing to do with Wall Street) is growing then your gamble may pay back a decent return. But most likely it is just a bigger bubble. You see Wall Street is all about bubbles. When you put your money on a stock you are hoping the bubble will continue and you can get out before it bursts. Trouble is that the insiders know when bubbles start and when they end and they get out before you can unless you are very lucky. Bernie Madoff wasnt doing anything that Wall Street doesnt do.
Wall Street uses sophisticated sounding terms like investing instead of gambling. People that would never be proud of gambling are all over themselves about their "investments". But think about it. You buy stocks from Fred because you think the stock price will go up and he doesnt. Then you sell it to Joe because you think it will go down and he doesnt. None of the money goes to a company to buy equipment. You are gambling. And we have seen evidence that all kinds of methods can be used to manipulate the stock price. In fact, CEO's have learned that stock price manipulation can be very lucrative. Even more important than building a good product.
I find it interesting to see relatively intelligent people that claim to be against the abuses of Wall Street, putting their money on the line so they might share the get rich dream.
Wall Street is a racket and the rubes always get taken.