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kleinbl00  ·  2593 days ago  ·  link  ·    ·  parent  ·  post: "This is why they hate us" - The Other Tech Bubble

Presume there are 3 billion shares of Facebook.

6.6 million of those shares are owned by the Central Bank of Switzerland.

As of this writing, FB is at around $180. Suppose that drops by half. Switzerland loses half a billion dollars. Granted - they've got 750 trillion dollars on their balance sheet but they also own Amazon, Apple and, well, $84 billion worth of the US stock market. Meanwhile, Facebook, Apple, Amazon, Netflix and Alphabet are 10% of the market cap of the stock market. And that's just primary effects.

Facebook's market cap is half a trillion dollars. Bear Stearns' market cap was a hair over a hundred billion. LTCM created a trillion dollars worth of exposure with a $5 billion balance sheet.

We all need to stop pretending that tech companies could vanish tomorrow and it wouldn't matter. Everyone has piled so much money into this bullshit that a massive Facebook boycott could literally cause a market crash, the way a stray cigarette could burn down a forest.