Worth a read: Facebook values itself at 3.7 billion USD or less

Mashable just came out with an interesting story that I'm blogging about because it's worth a read, and it is relevant to what I have been posting here about Facebook previously. Also its relevant to what is happening in the economy and with the US dollar right now.

Go read it:

http://mashable.com/2009/02/12/facebook-valuation-3/

(in the post Mashable is quoting Associated Press and links a bunch of documents that indicate FB's valuation to be 3.7 billion USD or less)

Earlier in July 24 2008 the PEDataCenter blog posted some juicy info on Facebook valuations as well:

http://pedatacenter.com/pedc/blog/view/10

The latest entry in their post gives Facebook a valuation of 7.75 USD per share in February 26 2008. and now the Mashable post has it at 8.88 USD per share. Not that much positive growth in a years time, don't you think?

If fact if you look at data from the Federal Reserve:

http://www.federalreserve.gov/releases/h3/current/h3.htm

...they have been printing so much US dollars out of thin air, and granting so much loans lately that it is arguable that the US dollar has lost so much of its value that the valuation (or rather; true value) of FB is actually far less now than it was a year ago.

The FED just 2 days ago unveiled a 1 trillion dollar program to print more US dollars out of thin air and give them out as credit:

http://money.cnn.com/2009/02/10/news/companies/consumer_loans/index.htm

What happens to value of money when more money suddenly appears out of thin air? It dilutes like the entrepreneur who takes onboard 4 VCs at once..

Facebook being valued at 3.7 billion USD is perhaps secondary news to the fact that 3.7 billion USD isn't quite what it used to be, and with more money being printed out of nothing the trend is likely to continue towards perhaps even a total value collapse of the dollar. Which would certainly bode interesting times to us all, and to Facebook's survival as well.

.. I suggest that you stay on top of this and keep an eye on what happens with the dollar. It certainly doesn't look all that rosy right now, and there's a sense of huge looming risks in the air.

One e-newsletter on this that I can honestly endorse would be this one:

http://www.frontlinethoughts.com/gateway.asp

Subscribe to that, and especially read the latest issue from Feb 6.