Surprise...the game is rigged

[SpasticGramps]

The FaceBook IPO had the most retail (read dumb money) investors ever. One of the truck drivers at work talked about how he really wanted to start trading stocks (himself mind you) so he could buy some facebook.

That coming from this guy strikes me a really big contrarian indicator. Guy probably reads at an 6th grade level.

Sheep to the slaughter.

Fadebook

Forget that S&P 500 e-mini futures plunged to four-month lows at 1290; or Treasury yields crashed back to their record lows; or Gold and Silver's surge today; or WTI's plummet to almost a $90 handle; or Citi joining Morgan Stanley in the red year-to-date; or credit markets continuing into the red for the year; or IG9 10Y soaring further to 160bps - widest in 6 months; or VIX closing above 25% for the first time in 5 months (and decompressing to Europe's pain). Today was all about one thing - the disaster that was/is/and will be Facebook - between late openings, overwhelmed systems, a dump to the syndicate bid and almost 600mm shares traded with the syndicate just soaking it all up at $38.00 early and into the close. Is it any wonder that every other social media stock plunged and how do they expect to ever get another internet IPO off again (at anything but a massive discount). No matter what correlation trick was tried to juice markets today - for the tenth day-in-a-row markets saw a BTFD turn into a STFR. Not a pretty end to the ugliest week in six month for the S&P 500 as it nears its 200DMA into the close.

Facebook...

 

[SpasticGramps]

Really FaceBook had no chance today. Europe is blowing up again. Someone's going to need to turn the printers on to try and calm things down.

 

[HUGE]

Go look up high frequency trading if you want to see rigged

 

[junior_grower]

I made an 11% profit on Facebook I shorted zynga and it fell like a pile of bricks. never bet on the market bet against it.

 

[Skinny Leaf]

Yeah how many people jumped ship from MySpace to Facebook. Facebook is just one program away from becoming obsolete.

 

[Hash Zeppelin]

I saw on the news that even if you wanted to buy shares in Facebook, you couldn't. All available shares had already been bought up by the mega-rich. Commonly stock broker houses were requiring at least $250,000 in available account funds to buy any shares and the cheapest one they found said $150,000 available, but the catch 22 is that all shares were immediately bought by huge stock brokerages so none were available. That $38 dollars per share everyone hears about was just the initial cost to them. By the time any shares are made available they may cost twice that, thus making huge profits for the already mega-rich. Does anyone else think that there something is very wrong there?

dude it's called plutocracy. a system where only the mega wealthy has full freedom and access.

 

[ronbo51]

Be thankful that you could not access Facebook shares to buy yesterday. It took almost everything TPTB had to prop up this saggy bitch from the get go. The initial bid of 45 was laughed at and finally started getting some hits at 42 before settling into the bottom at 38. So what would you do with shares of Facebook at 38 when the only direction the stock will ever go is down? The syndicate made their money, that's all that counts. the brokers will make their spread with some nice fees tacked on, and the retail investor will ride this down to Myspace territory. Like I said, be thankful. This will be the last tech IPO for a long time. All markets are looking to Europe, where the bankers are building their Maginot line, and reality will roll through like the German Panzers once did. Don't count on China to prop up the West either, they have big problems that don't get talked about much. Once the banks and Sovereigns in Europe begin to crash and burn all eyes turn to the U S, where all the worlds debt will be dumped, all that in an election year, with already weak and rudderless leadership, and no adults seemingly anywhere to be seen.

 

[headband 707]

FBI investigating missing money at MF Global
By Jennifer Liberto@CNNMoneyDecember 22, 2011: 9:49 AM ET


WASHINGTON (CNNMoney) -- The FBI and federal prosecutors are investigating how some $600 million of MF Global customers' money has gone missing, CNN learned Tuesday from sources close to the probe.

The investigation of MF Global (MF) is being conducted by the FBI and other federal regulators, including the U.S. Securities and Exchange Commission and the Commodities Futures Trading Commission. (MF Global: Sorting through the debacle.)

This past weekend, executives at MF Global had been scrambling to sell the firm to Interactive Brokers, but the missing money cost the firm the deal and forced it into bankruptcy, regulators said.

Earlier on Tuesday, Craig Donohue, CEO of CME Group (CME), the operator of the nation's largest commodity exchanges, told analysts that his firm has determined MF Global had broken government and CME rules requiring it to keep its customers' funds separate from the firm's assets.

Donohue said the CME is still investigating the extent of the violation. He also announced that floor brokers and traders guaranteed by MF Global or its division have been barred from CME's trading floors.

FBI spokesman Tim Flannelly said he couldn't confirm or deny an FBI investigation.

MF Global, (MF) a Wall Street brokerage firm led by former New Jersey governor and Goldman Sachs CEO Jon Corzine, filed for Chapter 11 protection on Monday.

MF Global did not return requests for comment.

MF Global's downfall has been attributed to, among other things, making bad bets on some $6.3 billion of European government debt.

When those bets went sour and its financial troubles worsened, MF Global may have tapped its clients money, according to the Wall Street Journal. It's unclear how the money may have been used.

Using clients money to help its own bottom line through risky bets would violate Commodities Futures Trading Commission rules on such trades, according to regulators and financial experts.


Financial experts say that they expect the investigation to turn up more questions in coming days. Expect congressional inquiries to follow, said Brian Gardner with investment firm Keefe, Bruyette & Woods.

"The question with MF Global is going to be: Was this fraudulent or was it sloppy paperwork and sloppy oversight?" Gardner said. "I think there are going to be lots of questions for CME and CFTC and a lot of good congressional hearings."

- CNNMoney Senior Writer Chris Isidore and CNN's Susan Candiotti and Lisa Sylvester contributed to this report.


First Published: November 1, 2011: 6:55 PM ET

Share

 

[ronbo51]

The MF Global robbery is now 6 months gone by and NO ONE is even talking about it. A lot of farmers used MF Global to park their yearly income after the crops come in. They were supposed to buy futures to protect growers from wild price swings. It's a well known strategy and is not risky. Then along came Corzine. Goldman CEO, former NJ Governor and major inside player,obviously dumber than a box of rocks, made bets on Euro Bond Garbage that could not be supported by risk capital. Everyone, everywhere knows and knew that Europe was facing undoing and the stupid dumbshit still thought he was the smart guy. I guess he was in the end, because the farmers got wiped out when they lost access to their capital, as did all the other investors, but not before Corzine looted the company and fled to NJ, where apparently we have a no extradition treaty with or some shit, because you'd think he might get served or arrested, or pulled out of his house and given to a mob of former MF Global investors. Maybe Attorney General Holder will take time out of his busy schedule locking up marijuana growers and look into this 600 million dollar theft.

 

[ChumLeeJr]

The MF Global robbery is now 6 months gone by and NO ONE is even talking about it. A lot of farmers used MF Global to park their yearly income after the crops come in. They were supposed to buy futures to protect growers from wild price swings. It's a well known strategy and is not risky. Then along came Corzine. Goldman CEO, former NJ Governor and major inside player,obviously dumber than a box of rocks, made bets on Euro Bond Garbage that could not be supported by risk capital. Everyone, everywhere knows and knew that Europe was facing undoing and the stupid dumbshit still thought he was the smart guy. I guess he was in the end, because the farmers got wiped out when they lost access to their capital, as did all the other investors, but not before Corzine looted the company and fled to NJ, where apparently we have a no extradition treaty with or some shit, because you'd think he might get served or arrested, or pulled out of his house and given to a mob of former MF Global investors. Maybe Attorney General Holder will take time out of his busy schedule locking up marijuana growers and look into this 600 million dollar theft.

Not gonna happen - Corzine is probably one of the cats that "Fast and Furious" gave guns to. Holder is therefore prevented from investigating, or at least finding any form of culpability.

Corzines junior assistant will be tried and sentenced to 1076 yrs for carrying a bag of money across state lines, and the FBI will seize all of that poor bastards family's assets, in perpetuity.

AND, Corzine raised a bucket load of cash for Barry O - so gets immunity. Not a slag on Prez, just a political factoid.

 

[DiscoBiscuit]

I bet Dimon can't find the billions Morgan Stanley lost.

 

[headband 707]

The MF Global robbery is now 6 months gone by and NO ONE is even talking about it. A lot of farmers used MF Global to park their yearly income after the crops come in. They were supposed to buy futures to protect growers from wild price swings. It's a well known strategy and is not risky. Then along came Corzine. Goldman CEO, former NJ Governor and major inside player,obviously dumber than a box of rocks, made bets on Euro Bond Garbage that could not be supported by risk capital. Everyone, everywhere knows and knew that Europe was facing undoing and the stupid dumbshit still thought he was the smart guy. I guess he was in the end, because the farmers got wiped out when they lost access to their capital, as did all the other investors, but not before Corzine looted the company and fled to NJ, where apparently we have a no extradition treaty with or some shit, because you'd think he might get served or arrested, or pulled out of his house and given to a mob of former MF Global investors. Maybe Attorney General Holder will take time out of his busy schedule locking up marijuana growers and look into this 600 million dollar theft.

Yeah God know no one ever play with the stock money like you say that shits old news right lol.. Yeah invest in the stock markets they are so stable ,,, lol.. They all think they are smart guys untill they lose everyones cash like they just did but thats old news right LOL.. okay then,,, headband 707

 

[magiccannabus]

I've been thinking about it. If you step aside and really look at the concept of shareholding, but change the context to a more personal scale, it looks like total insanity.

Example:

The Miller family wants to build an expansion to their home and add another child. Problem is, they don't have enough money. So along comes Mr. Moneybags and he makes them a deal: Take the family public, and he'll throw obscene money at them. The catch is, now Mr. Moneybags is part of your family financially, and he gets a cut from now on. Worse yet, if the Millers can't produce his share, they could lose everything they own to pay him. Mr. Moneybags never has to lift another finger or contribute another penny. At this point lets say Mr. Moneybags has all the available shares, or about 25% of the company. The Millers have to pay for upkeep and renovations, as well as providing for their family, so they must produce at least enough to meet those demands plus enough to pay Mr. Moneybags his dividends. The Millers don't necessarily like the dependence on Mr. Moneybags, so they decide to release some more stock, introduce some more investors. So they opt for a stock split, turning each share into two. Then they can sell smaller increments out to more investors. They sell another 35% of the household to an array of investors, and keep a solid 40% to themselves for controlling interest. This gets them enough money that they are able to keep ahead of their bills and pay their investors. Still, the shareholders want the Millers to make more money, and now the Millers have sold out more than they've kept. The Miller adults make good money, but the investors need more, so now the teens have to start getting jobs. If the family doesn't keep making more and more money, the investors may get fed up with it and vote the household dissolved, and then seizing it's assets to sell. Or perhaps the little investors will get frustrated with the lack of return, and put their shares up for sale, leaving Mr. Moneybags the new head of household should he so choose. Either way the family no longer owns themselves.

I know there's a lot of different trading systems and this is a gross simplification, but the above example does start to explain why stock market-based capitalism is such a disaster. How have we been swindled into believing that stock trade is a natural part of capitalism? It's about as genuinely capitalistic as "too big to fail"! hah!

 

[headband 707]

I've been thinking about it. If you step aside and really look at the concept of shareholding, but change the context to a more personal scale, it looks like total insanity.

Example:

The Miller family wants to build an expansion to their home and add another child. Problem is, they don't have enough money. So along comes Mr. Moneybags and he makes them a deal: Take the family public, and he'll throw obscene money at them. The catch is, now Mr. Moneybags is part of your family financially, and he gets a cut from now on. Worse yet, if the Millers can't produce his share, they could lose everything they own to pay him. Mr. Moneybags never has to lift another finger or contribute another penny. At this point lets say Mr. Moneybags has all the available shares, or about 25% of the company. The Millers have to pay for upkeep and renovations, as well as providing for their family, so they must produce at least enough to meet those demands plus enough to pay Mr. Moneybags his dividends. The Millers don't necessarily like the dependence on Mr. Moneybags, so they decide to release some more stock, introduce some more investors. So they opt for a stock split, turning each share into two. Then they can sell smaller increments out to more investors. They sell another 35% of the household to an array of investors, and keep a solid 40% to themselves for controlling interest. This gets them enough money that they are able to keep ahead of their bills and pay their investors. Still, the shareholders want the Millers to make more money, and now the Millers have sold out more than they've kept. The Miller adults make good money, but the investors need more, so now the teens have to start getting jobs. If the family doesn't keep making more and more money, the investors may get fed up with it and vote the household dissolved, and then seizing it's assets to sell. Or perhaps the little investors will get frustrated with the lack of return, and put their shares up for sale, leaving Mr. Moneybags the new head of household should he so choose. Either way the family no longer owns themselves.

I know there's a lot of different trading systems and this is a gross simplification, but the above example does start to explain why stock market-based capitalism is such a disaster. How have we been swindled into believing that stock trade is a natural part of capitalism? It's about as genuinely capitalistic as "too big to fail"! hah!

Well lol.. if you really want to put two and three together here then your going to have to look at all your politicitions and how they are making their cash aswell as I hear they have had their greedy fingers in the pie aswell with insider trading. Then your going to have to take a really close look at how your commodities market has been pushed with no insight into the effects on the global markets of the world because of the greed. The deeper you go into this one the slimmier the whole thing gets headband 707
Yeah Austerity my ASS!!!!!!

 

[redneck shogun]

You can save your money for when godaddy.com has their IPO!

 

[OreoGrows]

I saw on the news that even if you wanted to buy shares in Facebook, you couldn't. All available shares had already been bought up by the mega-rich. Commonly stock broker houses were requiring at least $250,000 in available account funds to buy any shares and the cheapest one they found said $150,000 available, but the catch 22 is that all shares were immediately bought by huge stock brokerages so none were available. That $38 dollars per share everyone hears about was just the initial cost to them. By the time any shares are made available they may cost twice that, thus making huge profits for the already mega-rich. Does anyone else think that there something is very wrong there?

sounds like the same way ipos have worked for decades to me... why dont you try trading currencies for like....half an hour, then maybe youll understand the difference between the initial offer price, the bid and the ask. read the rule book before you call a foul homie

 

[pearlemae]

All IPO's that are going to be huge are pre rigged. The average guy not only doesn't have a chance to buy any shares, he won't even smell an offer. The whole system is rigged for the big guys.
Corzine and his cronies said that they didn't have any idea where the money went because it was chaos for the last few days the company was operating. Great excuse... we were all running around with our hair on fire,we don't have any idea where the billions went. GIMME A BREAK. They all need to go to prison. Dimond, Corzine and everyone else on wall street, the whole street needs to go to prison.

 

[Crusader Rabbit]

I read that organized crime moved into the financial industry in a big way in the mid 90's. Can't say I've seen anything to contradict that notion.

 

[magiccannabus]

Well lol.. if you really want to put two and three together here then your going to have to look at all your politicitions and how they are making their cash aswell as I hear they have had their greedy fingers in the pie aswell with insider trading. Then your going to have to take a really close look at how your commodities market has been pushed with no insight into the effects on the global markets of the world because of the greed. The deeper you go into this one the slimmier the whole thing gets headband 707
Yeah Austerity my ASS!!!!!!

Well your first mistake was to call them my politicians.... lol They hardly represent people like me. I'm so poor I am totally off their radar if they are not pandering for sympathy votes. This country is obsessed with money and it's destroyed everything we were trying to stand for with this whole "great experiment" thing. It amuses me sometimes that we won the cold war mostly by creating a system that just wasn't quite as dysfunctional and dishonest as the Soviets had..... The problem is no matter what system we end up with, we have the same underlying psychological malfunctions that have plagued humanity since time immemorial. Until our focus can shift from competitive reproduction and trade to more of a cooperative and mentally healthy global society, I don't see these problems being reduced much. It's absurd how much energy we waste as a species just restraining the behavior of one another.

 

[HempKat]

It's absurd how much energy we waste as a species just restraining the behavior of one another.

Not just one another but ourselves too.