The facebook IPO is a classic pump and dump

New:

  • Facebook Inc’s underwhelming debut on Wall Street increases the pressure on the social networking giant to deliver stellar growth – a novel situation for Chief Executive Mark Zuckerberg, who has been clear he is more interested in building products than making money.

If this were twenty years ago, facebook would have gone public at notorious bucket shop D.H. Blair and Co. and investors who got burnt on the offering would join millions of others who get scammed with Wall St. ‘pump and dump’ scams every year. Thanks to SecondMarket and other private equity exchanges online, the insiders sold out of facebook long ago (just like the insiders at D.H. Blair used to). The only thing left was to milk a few suckers with an over hyped (it even had its own Hollywood movie adding to the scam) IPO to squeeze the final few billion that will be left to rot in retail and pension accounts. D.H. Blair finally got done in for racketeering. Morgan Stanley, lying to Congress about it’s systemic importance, will never face any sanctions. And so it goes . . .

33 comments on “The facebook IPO is a classic pump and dump
  1. James Brown says:

    Hmmm…just thinking, would I rather have one share in FacePalm or an ounce of silver…tough choices, we’ve all gotta’ make ‘em ;-)

  2. donk says:

    29th May is the date that options for facebook are available, it might be a fun day to see how many put options are grabbed up.

    http://seekingalpha.com/article/606391-facebook-looks-to-be-a-great-candidate-for-options-trading-not-as-an-investment

  3. Al Kyder says:

    DHAKA, Bangladesh – Bangladesh has discovered oil in two old gas fields in the country’s northeastern region with an extractable reserve worth $5.5 billion, the chairman of state-owned Petrobangla said Monday.

    Hussain Monsur said the two finds at Kailashtila and Sylhet contain proven reserves of 137 million barrels of low sulphur crude (Sweet)oil, of which 55 million barrels can be lifted commercially.

    Bapex made the accidental finding last week while analyzing 3D seismic surveys conducted last year in an effort to determine the size of remaining gas reserves in the two fields, which were discovered in 1962 and 1955.
    ======
    Iran Finds First Caspian Sea Oil For More Than A Century

    Iran has discovered oil in its Caspian Sea waters for the first time in more than a century, the state-run Fars news agency reported.

    The deposit was found at a depth of 2.5 kilometers (1.5 miles) during drilling on a natural-gas field and may contain 10 billion barrels of crude, Fars said, citing the National Iranian Oil Co. That’s equal to 7 percent of Iran’s known reserves.
    =========
    RIYADH – Oil production in Saudi Arabia, the world’s largest crude exporter, rose to 9.923 million barrels a day in March, from 9.853 million barrels a day in February, overtaking Russia as the world’s largest producer for the first time in six years, official data showed Sunday. Russia’s output in March dropped to 9.920 million barrels a day, from 9.943 million barrels a day in February, according to figures posted on the Joint Organization Data Initiative, or JODI, website. JODI is supervised by the Riyadh-based International Energy Forum and shows data supplied directly by governments dating back to 2002.
    ========
    PetroSA, China’s Sinopec Partner To Build New Refinery
    (Monday, May 21, 2012) PetroSA and Sinopec will build a refinery in South Africa that could process several hundred thousand barrels of oil a day and cost several billion dollars to construct.
    =========
    Engineer: Prelim Study for Uzbekistan GTL Project Ready in 2013
    (Thursday, May 17, 2012) Technip will complete the preliminary feasibility study for the construction of a synthetic liquid fuels plant GTL in Uzbekistan in January 2013, chief engineer at Technip’s office in Rome.

  4. alan says:

    I thought the only ones still playing in the stock market were those not risking their own money. ie bankers and super funds.
    Just say NO.
    All you folks still supporting the corporations because you think it will benefit your super plan had better think again

  5. Youri Carma says:

    Derivatives Bill To Skip Dodd-Frank Act for Ofshore Dealing U.S. Banks in London http://www.marketwatch.com/story/cftc-chief-criticizes-swaps-bill-post-jp-morgan-2012-05-21

  6. jischinger says:

    “…squeeze the final few billion that will be left to rot in retail and pension accounts.”

    I was just saying that the other day.

    I think Zuc open it up and does what he does cause he can and if all went bust tomorrow he wouldn’t care.

    it’s kinda weird, and perhaps I am off, but he reminds me of the character Joffrey Baratheon/Lanister/Zuckerberg

    but it’s just a perception

  7. Youri Carma says:

    Gerald Celente on KWN, May 20, 2012 – Audiohttp://kingworldnews.com/kingworldnews/Broadcast/Entries/2012/5/20_Gerald_Celente.html

  8. Youri Carma says:

    The End Of The Inflation Deflation Debate http://www.youtube.com/watch?v=AJwgtcaXFDY

  9. Youri Carma says:

    JMP’s Trone on Downgrade of Big U.S. Bank Shares http://www.youtube.com/watch?v=W18qsPUmQA4

    21 May 2012 by Bloomberg – David Trone, an analyst at JMP Securities LLC, talks about his decision to cut his rating on the shares of JPMorgan Chase & Co., Citigroup Inc., Bank of America Corp., Goldman Sachs Group Inc. and Morgan Stanley to market underperform.

  10. Youri Carma says:

    JP Morgan’s Regulatory Arbitrage of turning Financial Loss into Political Profit http://www.youtube.com/watch?v=WYw0Ibz-hi8

  11. Youri Carma says:

    If JPM’s “CIO’s “non-vanilla” portfolio is now over $150 billion in size,” and they are alowed to lose $31.5 billion, according to Zero Hedge, that would be exactly 21% of that portfolio.

    Did The Fed Just Give Us A Very Big Clue Just How Big JPM’s CIO Loss May Be?
    21 May 2012, (|ero Hedge) http://www.zerohedge.com/news/did-fed-just-give-us-very-big-clue-just-how-big-jpms-cio-loss-may-be#comment-2449858

    JPMorgan unit has $100 billion in securitized assets, structured debt: FT
    17 May 2012, (Reuters)
    http://www.reuters.com/article/2012/05/18/us-jpmorgan-idUSBRE84H02J20120518

    JPMorgan unit has $100bn of risky? bonds
    18 May 2012, by By Sam Jones in London and Tracy Alloway and Tom Braithwaite in New York (Financial Times)
    http://www.ft.com/intl/cms/s/0/8ef035de-a043-11e1-88e6-00144feabdc0.html

  12. Youri Carma says:

    Forget The “Bazookas”: Here Come The “Tomahawks” And “Howitzers” – An R-Rated Walk Thru The Greek Endgame http://www.zerohedge.com/news/forget-bazookas-here-come-tomahawks-and-howitzers-r-rated-walk-thru-greek-endgame

    Good look somtin like this: ‘Howitzers Wood Scene‘ – Sherlock Holmes: A Game of Shadows http://www.youtube.com/watch?v=u_HGOrX2WFE

  13. flicks says:

    Didn’t Blythe buy herself a university commodities department ?

    http://www.guardian.co.uk/education/2012/may/21/heist-century-university-corruption

  14. MirrorMirror says:

    Your Wages Will Be Cut In Half!

    http://www.youtube.com/watch?feature=player_profilepage&v=cJg99tGolNI

    Says …. expect 40% USD devaluation

  15. Tamir says:

    They don’t MAKE anything. It is just a nonsensical endeavour that will disappear in time. You cannot compare them to Google, Microsoft etc. What a waste.

  16. flicks says:

    http://www.youtube.com/watch?v=WYw0Ibz-hi8
    This is Tyler Durden ? Has he been on TR or any other telly before?

  17. flicks says:

    http://www.guardian.co.uk/business/2012/may/22/eurozone-crisis-greece-eu-summit-tsipras

    highlights

    “Breaking news — the IMF has called on the Bank of England to launch more quantitative easing or cut interest rates to stimulate economic growth.

    The IMf also warned that there are large dangers to the UK economy, mainly form the escalation of the euro crisis.”

    ‘cut interest rates’ – wtf

    “Quick bit of UK economic data — the Consumer Prices Index came in at 3% for April, lower than expected (and sharply down on March’s 3.5%).

    That’s the lowest CPI since February 2010, which means that Sir Mervyn King will not have to write another letter to the chancellor explaining why the cost of living is racing well ahead of target.

    The Retail Price Index, though, only fell back a little, to 3.5% year-on-year”

  18. gold bullet says:

    ‘Serbs had enough of Tadic oligarchy that kept them in poverty’

    https://www.youtube.com/watch?v=7IH2nCKRu74&list=UUpwvZwUam-URkxB7g4USKpg&index=6&feature=plcp

    Political expert Marko Gasic on RT about the election results in Serbia.

    5:41…

  19. Harry says:

    Great videos linked here. Thanks.

Access The Max Keiser Podcast
Weekly Downloads, live Q & A Session and exclusive video posts from Max and Stacy

Subscribe Learn More
Buy Gold Online
Buy Gold Online
Watch the latest Keiser Reports:

Watch our Google Hangouts: