01/06/2011 08:35 am ET Updated May 25, 2011

Why Are Taxpayers Subsidizing Facebook, and the Next Bubble?

Goldman Sachs is investing $450 million of its own money in Facebook, at a valuation that implies the social-networking company is now worth $50 billion. Goldman is also creating a fund that will offer its high-net-worth clients an opportunity to invest in Facebook.
On the face of it, this might seem just like what the financial sector is supposed to be doing -- channeling money into productive enterprise.