Bill Bonner

We don’t go to see many movies. Unless they have a lot of nudity or violence, they bore us.

But The Social Network is not a boring movie. We went to see it because our daughter, Maria, has a small role. It is her major motion picture debut. We went to see her. But what we discovered was an unusually engaging film.

The movie tells the story of the founding of Facebook. It is a “social network,” designed by students at Harvard to make it easy for people to keep up with each other.

“You mean, it will help us get laid,” says one of the characters in the movie…or words to that effect.

Occasionally, we get an email that tells us “so and so invites you to be a friend…” Once, we tried to follow up…we went to Facebook. There, we found a page of questions. We quickly lost interest and gave up. Henceforth, when asked to be a friend, we respond in the negative.

“Dad, you’re making a big mistake,” Jules, 22, opined. “I know a lot of people who don’t even check their email anymore. They communicate exclusively through Facebook. This is a big, big thing. And it’s not going away. E-mail could disappear.”

Maybe he is right. Maybe, in the future, we will publish The Daily Reckoning only on Facebook. But we hope not. We don’t like the concept. We don’t like the company. And we don’t like its shareholders.

“Now, Dad, you’re getting ridiculous. Zuckerberg revolutionized how people communicate. There are half a billion people on Facebook. This is like the invention of the printing press. I guess you don’t like Guttenberg either. You’re just being silly. That’s the point of the movie, by the way.

“Zuckerberg and Parker aren’t exactly nice guys. But that’s the point. You don’t have to be nice to do something great. And doing something great is what is important.”

The movie shows how Mark Zuckerberg and Sean Parker squeezed out – cheated, really – Zuckerberg’s original partner, Eduardo Saverin. Eduardo seems like a decent fellow. He provided a crucial formula early on. Then, he put up the seed money. But he did not see the potential of Facebook in the megalomaniacal terms of Zuckerberg and Parker. Being “cool” was not enough for him; he wanted it to be profitable too. Instead, he approached it more modestly and more conventionally. (Even today, it is not clear how profitable Facebook is.)

In the early days, Eduardo tried to sell ad space on the system in New York, while the other two were going wild signing up customers and getting venture capital backing in California. Once they got big backing, Zuckerberg and Parker had no further use for Saverin, so they cut him out.

“Eduardo was useless,” said Jules, sounding a bit Nietzschean. “He was not adding value. He was a loser. They were right to get rid of him. Eduardo was operating according to the wrong code. An antiquated code. Zuckerberg and Parker knew better. They understood something he didn’t.”

“No. They didn’t really. They were lucky. The project could just as well have failed. Most do. If it had failed, then those two would look like what they really are – a pair of conniving jerks.

“That’s really the lesson. Eduardo did the right thing. He was the winner. The Winklevoss brothers, too.

“And if I had the choice of doing business with Eduardo or with Sean Parker, I’d do business with Eduardo. You don’t know which projects will succeed or fail. You don’t know which ideas will win. But you know you never want to do business with nasty people. Even if you make a lot of money, it’s not worth it.”

“Are you kidding? At the end of the day, Zuckerberg and Parker were billionaires. Now they can be nice if they want to be. Being nice is not everything.”

“No, now they can’t be nice. You can’t undo nastiness. You can confess. You can repent. You can beg forgiveness and give a $100 million to the New Jersey schools. Maybe you’ll be redeemed. Or maybe you’ll be a miserable billionaire all your life.”

Regards,

Bill Bonner
for The Daily Reckoning

Bill Bonner

Since founding Agora Inc. in 1979, Bill Bonner has found success in numerous industries. His unique writing style, philanthropic undertakings and preservationist activities have been recognized by some of America's most respected authorities. With his friend and colleague Addison Wiggin, he co-founded The Daily Reckoning in 1999, and together they co-wrote the New York Times best-selling books Financial Reckoning Day and Empire of Debt. His other works include Mobs, Messiahs and Markets (with Lila Rajiva), Dice Have No Memory, and most recently, Hormegeddon: How Too Much of a Good Thing Leads to Disaster. His most recent project is The Bill Bonner Letter.

  • emdfl

    Yeah, Facebook, a great place to expose your personal information to just about anyone who wants to look at it; no thanks, that’s one problem I can sure live without.

  • et2cetera

    Facebook has become more than a social network – it has become the playground of the attention-seeking, the attention-deficient, the exhibitionist and the narcissist. And that’s only those on the right side of legal.

  • Daniel Newhouse

    Grumpy old man alert.

  • Martin

    What and how did you educate your children Bill?

    I am sorry to sound so mean, but what Jules said shows that you failed somewhere along the way.

    It is difficult to get everything right at all times.

  • christine

    My husband is a small business owner. When he receives a resumé from a job seeker the first thing he does is to go to facebook. Silly people, think they can act one way and put it on line for everyone to see and then write their way into a job interview. I agree with you Bill, I’d rather have nice than rich any day.

  • A. Nomynous

    Agree with Bill also. Seems facebook is the place for self centered people to tell the world how important they are.

  • John

    I may be the last and only one checking
    my email but that’s the way it’s going to be.

  • Aticus

    I agree with Bill.

  • RedQueenRace

    Well, there’s always at least one in every crowd.

    Congratulations to Martin for being the judgmental, self righteous fault-finder who assumes it just had to be a mistake in parenting on Bill’s part, despite some evidence here to the contrary.

    Hope your own kids weren’t infected with this type of thinking.

  • http://moviesonlinelive.com eula

    Facebook has gone from a very impressive social networking tool to an alternate reality where crimes go unpunished.

    =======================
    “I’m going to make him an offer he can’t refuse.” -Don Vito Corleone, Godfather (1972)
    Watch movies online for free here:Movies Online

  • http://www.google.com natasha

    this movie is borrrringgg

  • NEO

    if the fundamentals are weak the things will fail on the long run ; facebook might have sorry have gained its importance and we got to accept it but how long; anything built on wrong values wouldn’t just stay strong.

Recent Articles

Why You Shouldn’t Rely On Long-Term Market Trends

Chris Mayer

People assume that markets and financial instruments have some kind of long-term average they tend to flock toward. But in reality, a handful of wild swings in various directions often skew these averages to a point where the "long-term" is not at all reliable, let along predictable. Chris Mayer has more...


5 Min. Forecast
The “Snowflakes” that Will Cause the Next Financial Crisis

Dave Gonigam

The debt and leverage that Washington and Wall Street have built up over the years will eventually blow up. And when it does, it could be "worse than 2008." But there is at least one way to protect yourself. And today Dave Gonigam explains how you can get started before any of this occurs. Read on...


The Massive Energy Deposit that No One Can Get to… Yet

Byron King

By now you've probably heard about the violence in Gaza and Isreal. It's tragic, but there's more to it than the mainstream media lets on. Today, Byron King explains how, amid the conflict, there's also resource scarcity behind the Israeli-Palestinian crisis - namely, in the enormous offshore natural gas deposit known as "Leviathan..."


Your Chance to Profit from Amazon’s “Crazy” Prediction

Matthew Milner

Last year, when Amazon announced they would be using drones to send packages to customers, a lot of people saw it as a clever marketing ploy just in time for the holiday shopping season. But, as Matthew Milner explains, this use of drones could soon be widespread, and that presents a unique investment opportunity for savvy investors...


Addison Wiggin
One World, One Bank, One Currency

Addison Wiggin

After the 2008 financial crisis, little could be heard over the deafening cries of "mission accomplished." And while the Fed's massive QE program seemed to work, the question remains: for how long? Addison Wiggin explains why the next round of QE will fail miserably, paving the way for the IMF to step in with something called "special drawing rights." Read on...