The Facebook Fiasco is growing by the hour as the goofy stock drops like a knife, slicing off the hands of some of the richest banking houses on Wall Street. So, there is justice after all! We see how the evil ones who were bailed out at our expense who thought they could pull yet another bubble scam, are now being relentlessly destroyed by events they, themselves, started. Arrest them all, I say! It is several years late, but arrest them all!
There is trouble coming to Wall Street, the storm is about to break as everyone notices a failed con game: Morgan Stanley Denies Wrongdoing in Facebook IPO
Facebook shares have plunged 18 percent in the three days since the second-largest IPO in U.S. history, prompting investors to blame Morgan Stanley, the lead underwriter. The bank said it sent a copy of a revised prospectus that Facebook filed May 9 to all of its institutional and retail investors. The filing disclosed that Facebook’s advertising growth hasn’t kept pace with the increase in users.
Here is a funny video about Anonymous destroying Facebook: Erasebook – YouTube
Lots of comments here that amused me: Facebook’s ‘falling knife’ shares drop again – Market Extra – MarketWatch. One poster referred to this story: Facebook forecasts were revised, but only few knew –
Massachusetts subpoenas Morgan Stanley for details
By Lynn Cowan and Liz Moyer
Analysts for at least two of Facebook Inc.’s (FB) lead underwriters revised their financial forecasts for the company while it was holding initial-public-offering “road-show” meetings with investors, according to people close to the deal.
The revised figures were only passed along to some investors, according to Scott Sweet, an adviser with IPO Boutique who worked with hedge funds and others that were buying into the deal. That is standard industry practice, but Sweet said it angered some who didn’t get the updated figures.
This is how all con artists work: they know something, lie about it, and then trick someone who trusts them into buying a worthless turkey, a car with a blown engine, a property in a swamp or desert. Prosecuting people who do this is important. One has to put the fear of the law in these con artists and the US has let an army of con artists loose on Wall Street.
Last year, we had many Occupy Wall Street demonstrations which were all brutally crushed by the militarized cops. But they had a point: Wall Street is a criminal operation right now due to lack of relevant laws to protect investors. Police van drives through protesters in Chicago as they protest the G8 and NATO meetings, for example. The cops drove right over people. So, protestors who want change are attacked physically while crooks pretending to be financial advisors go around merrily lying about material matters so they can steal one’s life savings. I see a problem here.
From another reader at Marketwatch:
I have been to South America and every high school kid was on facebook on the cafe internet, really everyone age 12 to 18 was on facebook……….but that does not have any value. It is free,…they are kids, they have free time.. and….this was on a poor neighbor of a south American nation…..they are not buying anything…..they are in fb because it is is free and it is fun to share pictures…..that is all…they do not have credit cards from mom and dad…over there.
Of the supposed 900 million users, about half don’t use it much at all. Then the users are now mainly poor people or kids who are looking for something (robbing people who post information on FB about not being home is a huge hit with the criminals!). But the ‘ads’ that would work there would have to be selling stuff kids want and in general, this means free stuff. Woodstock is the ideal.
Facebook fell as far today as yesterday and will fall an equal amount tomorrow. This dynamic is picking up speed, not stopping. It won’t stop until everyone is certain it can’t fall any further and that means nearer to $1 than $44. Already, everyone is pointing fingers at each other as Morgan Stanley May Face Probe and Nasdaq Sued Over Facebook IPO Delays.
Meanwhile, the GOP is howling about capitalism and how Obama is a communist. This childish behavior is pathetic since they are most anxious that Obama not talk about Romney’s offshore loot, how he has destroyed high paying US jobs and offshored our industries. Romney talks about creating jobs but this is delusional. He has no plans for how to do this. None. Neither does Obama.
That old right wing witch, Mitch McConnell is shrieking about how President Obama Is Attacking Capitalism:
“I do think that it’s interesting to note that the whole notion of our success and of capitalism seems to be under attack by this administration across the board, not just in the campaign, but through the actions of the government itself,” McConnell said at a Capitol Hill press conference.
“They seem to have forgotten what made this country great and what has lifted literally millions of Americans out of poverty for a long period of time has been a robust capitalist system,” McConnell continued. “I think the view of this administration is that if you’re making a profit you must be up to no good. You must be either mistreating your employees or cheating your customers or both.”
Yes, Romney was most successful. Like any demolition team, he did a fine job of it. Like Genghis Khan, he looted just fine, very successful! As a good person for our nation, he was a total disaster. What lifted millions of Americans out of poverty was not a bunch of pirates moving jobs and capital overseas. It was Americans investing in our own country!
As for Obama suggesting that making a profit may come from cheating people…um…hello! Facebook is a prime example of this!
Now on to that other disaster area expected to bail out the EU: Japan Rating Cut Rings Alarm on Tax Gridlock – Bloomberg
The local-currency rating was reduced one step, and foreign-currency grade two levels, to A+, the fifth-highest ranking, Fitch said in a statement yesterday. The Paris-based OECD said separately that boosting the 5 percent consumption levy is a “top priority.”
A surge in demand for Japanese government bonds that sent 10-year yields to the lowest level since 2003 this month is masking the risks from rising debt. Prime Minister Yoshihiko Noda has failed to persuade opposition lawmakers to support his legislation, leaving gross public debt poised to reach 223 percent of gross domestic product next year, the OECD said.
YIKES. Japan is sliding off an ecological, emotional and financial cliff. U.S. Lets China Bypass Wall Street for Treasury Orders « Zen Haven: The Chinese can buy US debt directly from Uncle Sam whereas Japan still has to buy it from Uncle JP Morgan. This is UNIQUE and shows how much the Chinese leaders who we make fun of, own our government. Quite literally. They are also buying Japan’s debts for the same reasons.
The GOP pretends to not understand how capital, labor and debt operates and for that matter, neither does the DNC. Nor the Federal Reserve. Indeed, there is huge efforts to avoid understanding all of this. I can see why! It is so much easier to destroy the US capitalist system via deliberate ignorance. Bribes from foreign powers (Israel, Saudi Arabia, China, Japan, et. al.) are too lucrative to ignore and so the need to lie about capital, labor and debt is very important if one wishes to get richer, destroying the US.
Too bad the voters don’t know any of this. Thank our media. That pushed Facebook on us as hard as possible. And congratulations to the Little Investors on Wall Street who saw through the fog of hype and torpedoed the Facebook con game! Yes! Good going!
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