Is it possible for corporations to have too much cash? Of course it is. A sure sign of this is when they pay silly money for acquisitions. As I posted on the day, WhatsApp at $19B is a silly money acquisition for FaceBook when they have their own far superior Messenger App. It can be used across multiple devices with one login (i.e. it is not phone number dependent so the same messages on your iPad can be viewed your Android phone). Now some bright spark at Facebook has realised this and the company is forcing all Facebook Users to download it if they want to send private messages. Go Figure!
Last July I tweeted this mind-blowing graphic of a snapshot of High Frequency Trading. As more evidence emerges of a huge divergence between productivity and average wages (the gains from productivity have almost exclusively gone to the capitalist class, “the 1%”), HFT amplifies returns for the 1%. A new book out yesterday, Flash Boys, by Michael Lewis appears to evidence this. I am half way through it. It’s a brilliant read. You can arbitrage it at Amazon UK where it is available for the Kindle while being Kindle embargoed in the US: Read This HERE Understand How Digital Is Changing Our World!
Concise, immediate, comment on the balls bouncing around the digital technology space.