so morgan stanley pumps & dumps FB, then CEO calls his victims naive
 

major balls.

CEO James Gorman engineers a ripoff of his clients, getting them into facebook at 38 - 45 bucks per share. Blows up the size of the offering to basically flood the market & guarantee the stock would sink like a pig. Meanwhile morgan stanley is short the stock by overselling the issue, & takes profits as their clients bail out of the stock at discount prices.

I once thought capitalism worked by providing value to clients, not robbing them blind.

http://marketday.msnbc.msn.com/_news...ere-naive?lite

:321GFY

I loved that. He's right - they were naive, but not for the reasons he said. He was honest...in that extremely dishonest sort of way.

interesting the talk about 'confusion', and how this was what facebooks proposed price was

I tried to read your post but the flashing, bouncing, animated boobs in your avatar were too distracting - and I didn't want to suffer through yet aother seizure.

So I typed this instead.

Isnt that kind of shit illegal?

Not in the modern world. Hell, had they fucked it up and lost we the tax payer likely would have bailed them out again.

No one was forced to buy the shares. They thought they could get rich quick and went blind to every analyst who was writing what we now know was right.

Anyone with a smidgen of investment savvy would have known that the stock was overinflated at the IPO.

FB is a stock that you're supposed to hold over the long term and was a quick fix only for those who wanted to short it.

those small guys got what they deserved (aka blindly believing in wallstreet con artists even after 2008 fiasco). now it would be good, if those guys behind IPO got what they deserved....prison time (unfortunately not possible with current laws).

After all that happened in the last decade and all the shady shit that has come out about wall street firms, anyone that trusts them to look after investors money in front of their own is an idiot in the lowest regard. As the song says "you get what you put in, and people get what they deserve".

Any idiot that thought that buying a stock valued at 100 TIMES it's earnings, for a company that has NO WAY to increase it's revenues, and is losing major advertisers due to lack of ROI, deserves to get hosed. At this rate, I will sell all of those same people shares in a lemonade stand set up in Antarctica. How do we protect people from their own stupidity? Seriously....




.

when Facebook is on the paper more worth than companies like Mercedes Benz, Deutsche Bank and Siemens together then you know something is wrong

how can a company be worth 104 billion who has only 1 billion of profit?

anyways - whoever lost money on the IPO doesnt deserve any better

"Victims" as greedy people who were looking to make a quick buck?

We call them lawsuits

In other words, perfect timing on Facebooks part.

I'm surprised these people haven't been shot yet...

Common sense is not so common.

:2 cents:

They preyed upon the average Joe's naivety. FB is a well known brand that most people think they understand, so they somewhat relied on the mom and pops to help fuel demand for the stock. Love how James Gorman skirted the "did Morgan Stanley make money by shorting the stock" question.

Is it any surprise? The people in the financial industry are inherently sociopaths who want to make the most money with the least amount of work, and don't care who they hurt.

Quoted for truth.

I also think social network sites can be the "Rage" for a while and then crash and burn in an instant.

Perfectly stated.

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