Netflix Falls $120 After Hours
Ignorance drives all of our mainstream reality anymore. Truly. (If you think the world is going to claw its way out of this without suffering the consequences, you are smoking something stronger than crack because the entire world is run by credentialed, yet incompetent idiots.) We live in a dumbed-down world of complete lunacy. Netflix is trading at almost one thousand times free cash flow. A valuation of such insanity that I literally cannot even wrap my head around it. Earlier today some well-known economics reporter at a well-respected financial news web site (ahem) owned by Dow Jones remarked that Netflix was headed to $600 from its current massive bubble valuation of $450. In after-hours trading Netflix stock is down $120 per share. This is the level of credentialed economic reporting that dominates all of mainstream reality. In fact, it dominates all aspects of all of our reality.
Going back to my posts on competence versus credentials, there is almost no competence left in this world in positions of power. We truly are the bumbling, massively incompetent, centrally-planned Soviet Union. The only competent assertion one can make regarding finance is that we are in the largest financial bubble the world has ever seen. And it has been building for the better half of half a century and it has created a mass delusion that ensnares all who succeed in perpetuating it. And the valuation of financial assets reflect no type of reality. Period.
We live in a world that is unprecedented in its credentials. Bureaucrats who create and perpetuate our delusional reality love credentials. They often graduate from private, elite high schools, attend Ivy League colleges, have certifications of all manner and are completely incompetent. Then they lather, rinse and repeat for their kids. And they force this level of credential on society. That dumbed-down delusion is why we are guaranteed to see this system fail spectacularly. It is a system of “educated”, planned ignorance. It only succeeds by suppressing competence and its associated truth.