by Teresa Kuhn, JD, RFC, CSA
Bank on Yourself (TM) Advisor
www.livingwealthyradio.com
"Screaming girl syndrome"...
Get enough young girls together shrieking their lungs out in one room and it doesn't matter how bad a band plays, how heinous their hair and clothing , or how boring and banal their lyrics.
In the 60's and on in to the 70's, "shrieking girl syndrome" virtually cemented the success of talentless spandex and hair bands that should have never left mom and dad's garage in the first place. Carefully induced mass hysteria, after all, trumps taste each and every time.
So what does this have to do with the price of Facebook?
Well, it seems the screaming girl phenomenon is alive and well and living on Wall Street. Want to sell an IFFY IPO at hugely inflated prices not warranted by reality?
Then you need to get yourself some "shrieking girls." In the case of Facebook's IPO the girls were hype-spewing financial journalists, television reporters, and so-called investment gurus..
You also need to:
1.Be adept in the art of persuasion As the Guardian's (UK) Dean Baker writes:
... insiders benefited from the ability of Mark Zuckerberg and his colleagues to convince investors that Facebook had much more profit potential than, in fact, was true. This ability to hype a product (in this case, company stock) can be an incredibly valuable skill, but it provides nothing of value to society."
2. Understand the deal is rigged... Distribute your shares at a discount relative to the initial float price to INSIDERS (investment bankers, employees, special friends of the banks, etc.) These folks only care about one thing: A sudden, immediate spike in the share values so they can dump their putrid shares off on small investors and make a huge profit before the con is exposed. Was there a wee bit of "insider trading" going on at Facebook? Perish the thought!
3. Let your investment banking buddies teach you the art of the NAKED short sell. Wait! That's illegal, isn't it? (wink, wink) Realfreemarket.org explains this process:
"Facebook is way overpriced, due to hype and the investment bankers propping up the IPO. The bankster naked short sells Facebook. In 3-6 months, pre-IPO share lockup agreements expire, and insiders may start selling, pushing down the price further. The naked short seller waits 3-6 months to cover his short, profiting from the hype.
The naked short seller counterfeits shares of Facebook. He sells them to gullible people who buy the IPO hype. The naked short seller waits a few months and then covers.
The average person cannot naked short sell. Your broker won’t let you. Only banksters and insiders may naked short sell. The stock clearing and settlement system covers up naked short selling, treating fails as equivalent to legitimate trades."
For years I have been telling people: the Wall Street game is hopelessly rigged against ordinary people and that the only folks who truly profit are banks and Wall Street Insiders.
The Facebook debacle only serves to reinforce my long-held belief that the corporate bankers and Wall Street brokerages are parasitic in nature and thus, require hosts in order to survive and prosper.
Those hosts, unfortunately, are thousands of ordinary,starry-eyed small investors looking for the magical "ground floor opportunity" , pension fund managers desperately seeking ways to get out from under the specter of unfunded liabilities, and non-profits looking for any way to generate more revenue.
Bloomberg's observes:
"Investors have to understand that "investing in IPOs is a fool's game" rigged for three groups: Wall Street banks, institutional investors, and the company going public. Small investors are not a part of the equation, and by participating in the frenzy, they actually helped fuel the "Facebook IPO hype machine."
If the blatant Facebook IPO con isn't enough to convince you to keep your money off Wall Street and under your own control... then what is?
Find out more about a way to protect all that you've worked for and gain peace of mind, predictability, and gains without risk.
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