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Ordinarily I love Google. It is the closest thing to an AI (artificial intelligence) that I have come across, and has made me 100 times more productive (ok and more lazy) than I was growing up. But that doesn’t mean that it is perfect. The good old boy mafia that runs our country is always trying to get a piece of the action, and they have done a brilliant job with Google. In order to prevent companies from becoming too powerful, there are rules that make a company publish its records to the SEC once it makes a certain amount of money. Ordinarily that is a very good thing, for scary companies like Microsoft or Enron. But Google is not a regular company. Google is a geek’s paradise, doing everything the “right way” and curiously making outrageous sums of money as it runs circles around the competition. My complaint is not so much with Google, but with the fat cats and market makers that understand human nature and how to exploit the poor.
Google went public today at $85 per share. There has been discussion at slashdot about why this number is so important. In my humble opinion, this isn’t about market cap and valuation, this is about human nature. I would bet all of the money in the world, all of the money ever printed, that when a good company opens at $85, it will very quickly go over $100, due to psychology. That is precisely what happened. Now that in and of itself is no big deal, until you consider who makes the profit. (more…)