Kara Swisher Deconstructs Facebook

Kara Swisher of AllThingsD takes a contrarian point of view on Facebook and does a pretty good job of deconstructing the social-networking company, its potential and all the hype around it. What set her off: Facebook has apparently indicated that it might hold out for a valuation of as much as $15 billion rather than the $10 billion valuation the Microsoft investment currently being discussed would give it.

… there is always another fool in line to pass on the buck. A sky-rocketing IPO could wipe clean this round of insanity. But that does not take away the fact that Facebook is not worth this ridiculous price now. It might be in time, or it might not.

In order to put her post into visual context, we have come up with a Silicon Valley Funding Advisory inspired by the Dept. of Homeland Security. And just as the federal agency does, whenever we detect an instance of valuation insanity, we’ll be sure to keep you informed so you can plan accordingly.