One week ago, with a surplus of hype and a scarcity of fundamentals, Facebook became a publicly traded company. The price of the IPO came out very high. Its price immediately collapsed. Many were fooled by the excitement and overpaid for the investment. Investors are mad.
About four years ago, Barack Obama came to us with a surplus of hype (hope and change) and a scarcity of fundamentals. His ideas, like Facebook, were dreamed up in a dorm. Like the head of Facebook, Obama had never led or produced anything. Like the hype of Facebook, he was surrounded in hype. He spoke in front of Greek columns to adoring fans who would occasionally faint.
Obama’s outcome has also been a disaster. His health care plan has slowed down hiring. His stimulus plan has put our nation further in debt and achieved nothing. His non-energy policy has driven up the price of fuel and held up construction on pipelines.
Obama is the “Facebook president.” Business schools will teach the story of Facebook for decades to come. They will talk about how, a company with no assets and no experience could come public and be valued at three times the value of Disney.
History teachers will also talk about President Obama and how a man with no experience at anything could win and be the leader of the free world. Hopefully this experience has taught both investors and voters a lesson. Experience and fundamentals really do matter.