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California Dreaming Turns Into Nightmare As Sinking FaceBerg Stock Means Less State Revenue

Tyler Durden's picture




 

Remember just a few happy months back when California's legislators were cock-a-hoop over the exuberance in Silicon Valley and all the yummy IPO/Capital Gains taxes they would tithe away - instantly solving all funding issues? Yeah, not gonna happen. As reported by the Sacramento Bee this evening:

The state's Legislative Analyst's Office said Wednesday that 'hundreds of millions' of dollars in assumed tax revenues may never materialize due to the continued slide in Facebook's stock price.

 

Menlo Park-based Facebook closed Wednesday trading at $20.88 per share, a new low 45 percent below the initial price. The state Department of Finance assumed the social media giant would trade at $35 by November, while the Analyst's Office believed it would trade at $42 at that time. The November marker is significant because another wave of insiders becomes eligible to sell shares at that point.

 

The Analyst's Office said today that much of the Facebook income tax revenues will still come in. But the LAO added that "if the company's stock price remains depressed, hundreds of millions of income tax dollars assumed in the 2012-13 state budget plan are at risk."

 

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Wed, 08/01/2012 - 21:22 | 2670830 fonzannoon
fonzannoon's picture

Yeah but it's all good because Calpers is shorting facefart....right?

Wed, 08/01/2012 - 21:40 | 2670874 wang (not verified)
wang's picture

all is right with the world according to this ABC headline

60 House Bills to Name Post Offices, Zero(hedge) To Fix Mail Service

http://news.yahoo.com/60-house-bills-name-post-offices-zero-fix-14462409...

Wed, 08/01/2012 - 21:57 | 2670919 AlaricBalth
AlaricBalth's picture

From May 18 HuffPo:
California's Tax Coffers: The Legislative Analyst's Office (LAO), a nonpartisan adviser to the California government, recently estimated the state could take in nearly $2.9 billion in tax revenue as a result of the Facebook IPO between now and fiscal year 2014-15. The bulk of that will come in the 2012-13 fiscal year, according to the LAO. And Facebook alone will count for about a fifth of the growth in personal income in the entire state in calendar year 2012, the LAO estimates. This is money California desperately needs.

Perhaps Governor Brown can pledge future revenues from federal government disaster relief payments in the remote event the San Andreas Fault goes.

Wed, 08/01/2012 - 22:30 | 2670987 Precious
Precious's picture

"Benjamin Shalom Bernanke Federal Post Office, Yukon, Alaska"

Wed, 08/01/2012 - 22:37 | 2671007 The Monkey
The Monkey's picture

Let me get this straight. California is assuming Facebook trades at $35, while CALPERS assumes long-term returns of 7.0% annually. THEN, Janet Yellen comes guns blazing into the FOMC demanding more stimulus for her broke-ass crack smoking state???

What the fuck?

Wed, 08/01/2012 - 23:18 | 2671085 The Big Ching-aso
The Big Ching-aso's picture

 

 

California creaming on such a losers day.

Thu, 08/02/2012 - 00:01 | 2671135 AlaricBalth
AlaricBalth's picture

Here is the list of 13F filings for FB as reported by Nasdaq as of June 30, 2012. A virtual rogues gallery and proof that story stocks like FB are sold to fund managers, not bought. MS institutional brokers had a field day in the first 2 weeks of May. "I got another fish for 100,000 shares!!!!
http://www.nasdaq.com/symbol/fb/institutional-holdings

Thu, 08/02/2012 - 00:17 | 2671147 Manthong
Manthong's picture

How freaking pathetic that one of the worlds top ten economies would even notice a twenty something's Internet splash in the budget. 

Thu, 08/02/2012 - 00:32 | 2671164 AlaricBalth
AlaricBalth's picture

And if anyone is wondering whether the state of California or its entities own any shares of FB, here is an answer.
From Time magazine, Feb 7, 2012.

"CalSTRS own Facebook shares through its private equity managers and plans to purchase more once Facebook goes public, according to Janice Hester-Amey, a portfolio manager in CalSTRS Corporate Governance unit."

So not only does California lose projected revenues, their teachers pension is further away from their discount rate (projected returns).

California Dreaming' INDEED!!!!

Thu, 08/02/2012 - 01:58 | 2671230 Freddie
Freddie's picture

They just loot the pension plans and the libs think it is grand.

It is amazing that the state was actually thinking that a company that makes nothing except web pages, could help plug their state budget woes from capital gains tax revenues from this dogshit stock. 

The even bigger irony is they pushed out manufacturing and energy companies that actually create jobs, wealth and taxes.  The whole f***ing state needs to be nuked from orbit.  It is the only way to be sure.  

A little movie dialogue there from a movie not really made in Caliie but greenlighted by a studio there.

Thu, 08/02/2012 - 06:13 | 2671338 GCT
GCT's picture

LOL Freddie funny how you mention the movie industry.  CA is giving Hollywood incentives to film in CA.  The movie industry spokesperson stated filming in CA just cost too much so they film out of state now.  Maybe CA should look at being business friendly instead of running them out of the state.

Thu, 08/02/2012 - 08:40 | 2671595 Isotope
Isotope's picture

Whichi is amazing when you think about it.

Consider all the people involved, the stars and their luxury mobile homes, the massive amount of heavy equipment, the huge number of various large and small items they need to produce a movie. Then they have to transport them across the country, or sometimes to another continent, and back again. And it's still cheaper than dealing with the expense of doing it in California. How bad does the business environment have to be for this to be true?

Wed, 08/01/2012 - 23:41 | 2671106 Never One Roach
Never One Roach's picture

Broke Municipalities Look to Bankruptcy Option

 

Economist Allan Meltzer once quipped that “Capitalism without failure is like religion without sin. It doesn’t work.”

The problem in the public sector is that government never is allowed to fail. There never is a day of reckoning no matter how poorly a government agency may provide its so-called services. Because there are no real customers in the government world, there’s never any hell to pay when the public is mistreated, when resources are wasted and when incompetents enrich themselves in the name of serving the public. Often, the worst agencies are rewarded for their failure by being granted additional public dollars.

 

http://www.calwatchdog.com/2012/03/09/special-series-municipalities-look...

 

*******************************

 

CA chickens coming home to roost

July 23, 2012

Katy Grimes: A fourth California city is on the verge of bankruptcy.

The news that Compton is about to file for federal bankruptcy protection is not surprising. But news that Santa Monica may also file, is. 

 

http://www.calwatchdog.com/2012/07/24/ca-chickens-coming-home-to-roost/

 

 

Thu, 08/02/2012 - 09:10 | 2671753 sessinpo
sessinpo's picture

"What the f?"

I know you aren't really surprised.

As with any liberal/sociast state, they'll do any thing, and I do mean any thing to deny reality and facts  of a failed ideology. The worse staes off are the most liberal, CA, IL & NY. They have so many people entrenched into government  support, they are  not only fighting for their ideology, but their financial support. It is their way of life and what they know. That is why liberals are scared sh*tless by the tea party. The tea party would cut off their gravey train. So we'll just let them melt down on their own. At some point they will become beggars. They already are (being so depending on government), but most are to dumb to realize it.

Wed, 08/01/2012 - 22:33 | 2670996 ZeroAvatar
ZeroAvatar's picture

They went from 'The Whole Year Inn' to 'The Hole Your In' .     (HT Leaving Las Vegas)

Wed, 08/01/2012 - 22:42 | 2671020 carguym14
carguym14's picture

They should change the name to:

Legislative Mathematical Analyst's Office (LMAO)

;)

Wed, 08/01/2012 - 23:30 | 2671100 The Big Ching-aso
The Big Ching-aso's picture

 

 

The hi-speed bullet train from Bumphuck, CA to Bumphucked, CA will save their bacon.

Wed, 08/01/2012 - 21:45 | 2670885 Pool Shark
Pool Shark's picture

 

 

No problem; I hear MoonBeam's backup financing plan for the state is to use the entire UC budget to buy lottery tickets.

It can't lose!!!

 

Wed, 08/01/2012 - 22:52 | 2671046 tom a taxpayer
tom a taxpayer's picture

So, I'm on the first tee with Zuckerberg in the California Himalayas. I give him the driver. He hauls off and whacks one - big hitter, Zuckerberg - long, into a ten-thousand foot crevasse, right at the base of Mount Whitney glacier. Do you know what Zuckerberg says? Gunga galunga... gunga, gunga-lagunga. So we finish the eighteenth and he's gonna stiff me. And I say, "Hey, Zuckerberg, hey, how about a little something, you know, for the effort, you know." And he says, "Oh, uh, there won't be any money, but when you die, on your deathbed, you will receive total consciousness." So me and California got that goin' for us, which is nice. 

True story as told by Carl Spackler in Frontline documentary "Caddyshack".

Wed, 08/01/2012 - 21:56 | 2670915 mofreedom
mofreedom's picture

Calpers equals CAL People Epilectic Retard Socialists. I told you before Clinton refused to sell this mess to China.  Amen!

Wed, 08/01/2012 - 22:05 | 2670939 mofreedom
mofreedom's picture

Do ya'll know what NAACP means?  Not racial, but political.  Amen!

Wed, 08/01/2012 - 22:20 | 2670972 gookempucky
gookempucky's picture

NAACP------------- niggers arent always colored people.

Thu, 08/02/2012 - 01:35 | 2671215 monad
monad's picture

No Affirmative Action for Caucasian People

Thu, 08/02/2012 - 03:13 | 2671280 AnAnonymous
AnAnonymous's picture

That would be un-'american' as the US has been a story of affirmative actions from the start.

Clearly, Indo Europeans living in the US resent the loss of the monopoly as the affirmative action recipients but it remains: the story has started on 1776, July, 4th.

Thu, 08/02/2012 - 09:30 | 2671813 sessinpo
sessinpo's picture

To the winner goes the spoils. It is interesting how you equate war with a lobbying group.

 

And clearly every former colonization from Europe would also be as you described - resentment of the loss of the monopoly as the affirmative action recipients.

And I'll take it a step further. How about the inhabitants before Europeans. When any "invading nation" takes over, they are taking affirmative action for themselves over the earlier inhabitants. So how far to you want to go back and shall we talk about BS liberal reparations?

Thu, 08/02/2012 - 00:34 | 2671168 ACP
ACP's picture

In other news, San Bernardino, CA declares bankruptcy and insider selling is the highest in recorded history.

Thu, 08/02/2012 - 01:22 | 2671203 Freddie
Freddie's picture

Union Dem scum turning the entire state into Tiajuana were counting on that Faceshit tax money.

Wed, 08/01/2012 - 21:22 | 2670831 q99x2
q99x2's picture

FaceBook: the tax shelter of 2012.

Wed, 08/01/2012 - 21:25 | 2670836 TruthInSunshine
TruthInSunshine's picture

The textbook definition of a Banana Republic:  The largest state in the union and purported 8th largest economy in the world, either temporarily having the means to pay its bills or not, depending on what a dot.com bubble v2.0 stock does since its IPO.

Wed, 08/01/2012 - 21:33 | 2670859 SHEEPFUKKER
SHEEPFUKKER's picture

Where is the Governator?

Wed, 08/01/2012 - 21:39 | 2670871 nmewn
nmewn's picture

Dancing on Moonbeams?

Wed, 08/01/2012 - 22:03 | 2670933 Marley
Marley's picture

Doing Amyl with his Enron creators.

Wed, 08/01/2012 - 22:10 | 2670950 Bastiat
Bastiat's picture

Governator is gone. Gov. Moonbeam, last I heard, was in Vegas sucking up to his owners, the CA teachers union.  Suck it, Gerry, suck it good.

Wed, 08/01/2012 - 21:58 | 2670923 Fecklesslackey
Fecklesslackey's picture

You do know that as the 8th largest economy in the world, they should be at least allowed to print their own money

Wed, 08/01/2012 - 22:18 | 2670971 Hedgetard55
Hedgetard55's picture

They use IOUs instead.

Wed, 08/01/2012 - 23:59 | 2671132 goldfish1
goldfish1's picture

California has been the number one food and agricultural producer in the United States for more than 50 consecutive years.

 

More than half the nation's fruit, nuts, and vegetables come from here.

California is the nation's number one dairy state.

California's leading commodity is milk and cream. Grapes are second.

Thu, 08/02/2012 - 01:07 | 2671192 horseman
horseman's picture

And the Dems have been waging war on the farmers and ranchers for years.  The Dems even managed to distribute water to Dem congressional districts and let Rep districts go dry.

Thu, 08/02/2012 - 01:14 | 2671197 Edmon Plume
Edmon Plume's picture

Your fruits and nuts - they're everywhere.  Oregon used to be partially sane, as did WA, but those fruits and nuts had to migrate north and ruin everything.  Then they had to migrate east to NV, CO, AZ and beyond to escape the cesspool they created, so they could recreate it.  Bad views travel fast.

BTW, you didn't build that.

Thu, 08/02/2012 - 08:18 | 2671495 goldfish1
goldfish1's picture

Yeah. Great places out west.

 

Thu, 08/02/2012 - 12:48 | 2672739 Lednbrass
Lednbrass's picture

No different in the East, problem here is all of the plague rats leave places like New England and Ohio then move to the South to destroy new areas by turning them into replicas of the places they left.

Thu, 08/02/2012 - 01:19 | 2671201 mkhs
mkhs's picture

Do you mean nut as in looney tune?

And vegetables as in done a lot of crack?

Thu, 08/02/2012 - 01:29 | 2671209 Freddie
Freddie's picture

I would not eat CA's shit food you moron because it has all been Fukashima'ed.  Get a clue.  Also the little retard invaders from the south who work in the fields sh*t out there and human feces in the food chain is very bad. 

F****ng libtards.

Thu, 08/02/2012 - 08:11 | 2671470 goldfish1
goldfish1's picture

Don't eat it then. Nobody's forcing you. You speak as if you know. California is a big place with lots of growing areas. Have you even been to California? Many migrant workers aren't painted with your smear brush either.

Phliadelphia area had one of the highest readings of contamination in the weeks after the tsunami. You'll probably need to avoid Pennsylvania and all the states in between.

Do you eat seasonal and buy local? Do you know your grower and the agriculture practices on their farm?

I didn't think so.

That picture is so you.

Thu, 08/02/2012 - 10:06 | 2672042 3ringmike
3ringmike's picture

cannabis is california's leading cash crop. just saying.

Wed, 08/01/2012 - 22:09 | 2670949 mendigo
mendigo's picture

Not to worry, there's still Apple.
Commmmonnnn sevens!

Wed, 08/01/2012 - 22:36 | 2671006 ZeroAvatar
ZeroAvatar's picture

Gimme $50 on Snakeyes.   . .

Wed, 08/01/2012 - 21:23 | 2670833 lizzy36
lizzy36's picture

Hard to believe that the state is flat ass insolvent with brilliant "hope and prayer" state budget planning.

Guess they never got that 3 year old saying:don't count your chickens.........

Wed, 08/01/2012 - 22:17 | 2670970 max2205
max2205's picture

Shows that californication education isn't that great. Stanford grads must be Stupid

Wed, 08/01/2012 - 23:10 | 2671071 Melin
Melin's picture

Won't Ben provide e-fiat?  The first gets the most, no?

Wed, 08/01/2012 - 21:24 | 2670838 JLee2027
JLee2027's picture

Market green. Nothing to see here. Nothing to see here. Move along.

Wed, 08/01/2012 - 22:39 | 2671013 ZeroAvatar
ZeroAvatar's picture

Nightmare on Mulholland St.  This is not the disappointment you are looking for.

Wed, 08/01/2012 - 21:25 | 2670839 bulbous_walrus
bulbous_walrus's picture

What is the difference between Facebook and Twitter?

One is an irretrievable cesspit of failure and the other is Twitter.

Wed, 08/01/2012 - 22:13 | 2670962 GMadScientist
GMadScientist's picture

How many characters are left available when Sarah Palin's wit runs dry?

Thu, 08/02/2012 - 09:36 | 2671879 sessinpo
sessinpo's picture

I don't think you can count that high. But you can try.

Wed, 08/01/2012 - 21:26 | 2670840 OldE_Ant
OldE_Ant's picture

lol.  There is a reason they are call Anal-ists - cause they don't take it up the ass, you do!  

Hundreds of millions of dollars of tax revenue - from where?

I guess they are 'hopin for a change'.

Wed, 08/01/2012 - 21:25 | 2670841 nmewn
nmewn's picture

Still born...but but but we bought all these baby clothes!!!

Wed, 08/01/2012 - 21:25 | 2670843 FieldingMellish
FieldingMellish's picture

Talk about counting your chickens or in this case spending your winnings before you have placed your bet at the most rigged table in the casino.

Wed, 08/01/2012 - 21:27 | 2670845 Bob
Bob's picture

I thought that was what states are for.  Looting.  Wasn't it Jamie who handled this IPO?

Joe Public is everybody's favorite sucker.  Perhaps we should just follow the fucking money before it's gone

Wed, 08/01/2012 - 21:27 | 2670846 fourchan
fourchan's picture

its maxine waters fault

Thu, 08/02/2012 - 00:56 | 2671184 2discern
2discern's picture

Wets her pants-maximum absorbtion...it all DEPENDS.

Wed, 08/01/2012 - 21:26 | 2670847 Gringo Viejo
Gringo Viejo's picture

I live here, With or without Facebook, we're royally fucked. With all due respect to Rodney....TAKE MY GOVERNOR AND SENATORS>>>PLEASE!

Wed, 08/01/2012 - 21:32 | 2670854 takinthehighway
takinthehighway's picture

So relocate, bro.

The "American Redoubt" is looking better every day...or, for a warmer climate, you might want to consider the South. Have a look at what we've got planned for the future...http://dixienet.org/rights/corebeliefs.shtml . Pay especial attention to Section III, the financial plans.

Wed, 08/01/2012 - 22:12 | 2670958 Gringo Viejo
Gringo Viejo's picture

I hear ya' takin'! But as I posted yesterday, my wife won't leave, we're in our 60s, and I won't desert the old girl. So I've accepted I'll go down swingin' against the barbarian horde, remington 30.06 in one hand, mossberg 12 in the other. Old ex-marines don't die, they just try & take as many pieces of shit as they can with them when they go. Keep the dream of America alive youngsters!

Wed, 08/01/2012 - 22:37 | 2671008 bigwavedave
bigwavedave's picture

If your in your sixties. Why does is sound like your at least 90 ?

Wed, 08/01/2012 - 22:46 | 2671027 Gringo Viejo
Gringo Viejo's picture

witty.... not, small fish.

Thu, 08/02/2012 - 07:02 | 2671355 JoBob
JoBob's picture

Bigwavedave: It is not "your"' you idiot, it's "you're.

Wed, 08/01/2012 - 23:36 | 2671103 ClassicalLib17
ClassicalLib17's picture

@ Gringo Viejo,  I'll be counting on our Marines to lead the military junta that will restore our constitutional republic.  God bless you,  sir

Wed, 08/01/2012 - 23:46 | 2671113 Gringo Viejo
Gringo Viejo's picture
  1. Classical: were that so, I would die a most contented man. God Bless you my friend.
Thu, 08/02/2012 - 01:33 | 2671214 Edmon Plume
Edmon Plume's picture

Today's military is infected with foreign mercenaries with loyalties to their own countries, and fatherless punks, infused with moral relativism, who will dutifully follow all the wrong orders.  In light of this, your hope is extraordinary.

Thu, 08/02/2012 - 01:46 | 2671223 Renewable Life
Renewable Life's picture

Ya that's just what we need in America, a fucking military coup!!! Over a trillion a year in spending goes to the military, CIA, NSA, Homeland Security, and "special ops", I'm sure their Generals and CO's top priority will be the fucking republic and it's Constitution!!!!!

Get real, this isn't a Jerry Bruckhymen movie your living in, it's Syria, Iraq, Afganistan, and Libya............that is what war looks like!!!

Thu, 08/02/2012 - 02:55 | 2671262 cynicalskeptic
cynicalskeptic's picture

Better hope enough of the military are 'Oath Keepers' and stand by their oaths to preserve and protect the Constitution from all threats, because at some point - and it won't matter WHICH party was 'elected' last - those in DC are going top piss their pants at the sight of a populace coming for their hides.  

The Republic is dead, the Empire that replaced it is collapsing and the Senate has more than one horse in it.  Doesn't matter who the emperor is - the few that are rich are getting richer and the rest won;t be amused by circuses much longer... When the free bread runs out, watch out.

Those in government know things are FUBAR and they're terrified.  The passed Paulson's two page TARP BS - with NO real oversight or give-backs from banks and Wall Street for TRILLIONS because the Congress was told there would be riotong in the streets.....   the rioting in the streets will be BECAUSE  government has been looted and sold to the highest bidder - and now the US is broke.  Sam Walton's 6 heirs are worth more than 30% of the rest of the WHOLE US POPULATION thanks to inheritance tax slashing and cuts in income tax.  You've got a record number of people on Food Stamps - people who USED TO HAVE JOBS - jobs that were shipped overseas under St. Ronnie, Bush Sr., Clinton, Bush Jr. and, yes, Obama too......  And a good number of those working only 30 hours aweek for Walmart (any more and you are due benefits) are ALSO collecting foodstamps because they can't live onminimum wage....... long term unemployment is running out and REAL unemploymen is over 20%.   It's 1932 again and there's no FDR in sight, no CCC, no WPA, NOTHING.  And even WWIII against the great evil Muslim horde - starting/continuing with Iran this fall - will not help because the US HAS NO INDUSTRIAL BASE LEFT.  You can't fight WWIII if you have to buy everything from overseas - our credit is shot.   Yeah, tjhe military industrial complex still has remnants left but big deal if you can't finish a cruise missle because you can't get some 79 cent part made only in China?   Our high tech ass is getting kicked with IED's made from fertilizer and explosives laying around since the Soviets left Afghanistan.... The Middle East has weapons and explosives for sale in your local bazzaar in the Pakistani boonies....  and CHina and Russia are none too thrilled with the US trying to take by force what it can't apy for any more (cheap oil).

If the US goes after Iran it's last inning.... the game ends when the US can't win and sends troops home to subdue a broke, hungry, unemployed, fed up populace.  Pray those troops DON'T follow orders like too many 'good' Germans did in the 30's and 40's.

Thu, 08/02/2012 - 11:11 | 2672322 marathonman
marathonman's picture

Sorry chief, but this is the inevitable result of the Ponzi-nomic debt based monetary system.  FDR played that game as well as anybody.  What do you think the military is these days?  It's the CCC.  They build airplanes, tanks, armored personnel carriers, etc., etc.  They build facilities for our 'protection' all over the world including right here in the good old USofA. 

The US could wriggle out of this mess if it so chose.  It could go 'greenback' and issue US dollars for all those FRN's and cancel all the debt at the same time it outlawed fractional reserve banking.  It could end the FRN legal tender laws and negate taxes on trading gold and silver and go back to a gold/silver standard.  All the states could start their own publically owned state banks and effectively tell Goldman Sachs and JPMorgan to suck off.  There are lots of options to play the money game. 

I don't hold out much hope that any of the above options will be tried because TPTB have this system just the way they want it.  Mises had it right years ago when he wrote that their was no way to avoid the crash of credit expansion, just whether it came as depression or as currency collapse.  When all the world's money is credit, there is no way to avoid the inevitable crash.  And TPTB will be there to pick up the pieces for a real song.

Wed, 08/01/2012 - 22:52 | 2671044 robertocarlos
robertocarlos's picture

Not taxing the land means one person will one day own all of it. Do non Xtians and Muslims get to live there in peace?

Wed, 08/01/2012 - 22:57 | 2671054 Lednbrass
Lednbrass's picture

Not taxing the land means one person will own all of it? How do you figure that? The land in the South wasn't taxed for centuries and large numbers of people owned land.

Wed, 08/01/2012 - 23:48 | 2671117 JohnKozac
JohnKozac's picture

Simple solution is to tax all those Aliens the NAR talks about coming into California buying up all those $1,000,000 vacant  2,500 sf houses. 

After all, "there's never been a better time...".....and so on.

Thu, 08/02/2012 - 03:01 | 2671271 cynicalskeptic
cynicalskeptic's picture

'The land in the South wasn't taxed for centuries and large numbers of people owned land.'

ALL those plantations... with slaves and then poor sharecroppers working the land for what?...... the rest of the land wasn't worth crap.... all the mountain and swamp land with oh so wealthy 'independent' people living on it...... bwahaaaaaaaa......

 

Under our current system of taxation, the VERY rich have been getting VERY MUCH RICHER - while everyone else is getting poorer. The greatest wealth transfer in history has happened - with the money going to the wealthiest 1/10 of 1%.......       If you believe otherwise you're one of thebrainwashed fools that let it happen.       All those tea party types that forgot they were pissed at banks and Wall Street and now want to keep tax cuts for millionaires... (owned lock stock andpaid for by the Koch Brothers... co-opted or astroturf, doesn't matter... the result is the same).

Thu, 08/02/2012 - 09:46 | 2671931 sessinpo
sessinpo's picture

"Under our current system of taxation, the VERY rich have been getting VERY MUCH RICHER - while everyone else is getting poorer."

 

The disparity between the rich and poor was greater prior to the last great depression.

And you never know what value land may have. Not many people thought much about the Dakotas until recently. It use to be CA gold, now Ca is shit. I love liberal post of jealousy, it becomes and consumes you.

Thu, 08/02/2012 - 12:52 | 2672770 Lednbrass
Lednbrass's picture

What an idiot, you watch too much TV. A small single digit percentage of the population even owned slaves- the overwhelming majority of the land was owned by small farmers.

The rest of your post is strawman silliness not meriting a response.

Thu, 08/02/2012 - 09:40 | 2671906 sessinpo
sessinpo's picture

"Not taxing the land means one person will own all of it? How do you figure that?"

Obviously he means that if his argument is true, only one person is smart enough to buy the land. I'm guessing its not him.

Wed, 08/01/2012 - 21:49 | 2670895 Seasmoke
Seasmoke's picture

That was Henny

Wed, 08/01/2012 - 22:36 | 2671002 Bartanist
Bartanist's picture

Maybe if Kaleeforneea stopped sending politicians to Washington they could save a few bucks. Don't the taxpayers pay for weekly flights back and forth in private jets for Pelosi and Panetta?

Wed, 08/01/2012 - 21:29 | 2670850 Ineverslice
Ineverslice's picture

This has been an ugly bloodletting for so many entities.....insiders, banks and whole states.

Wed, 08/01/2012 - 21:33 | 2670855 e-man
e-man's picture

Soon there will be a tax for people who don't own FB stock.  They're destroying the economy. /sarc

Thu, 08/02/2012 - 09:33 | 2671861 Jethro
Jethro's picture

Why not?  The predecence has been set with Obamacare...

Wed, 08/01/2012 - 21:33 | 2670861 Trimmed Hedge
Trimmed Hedge's picture

FB down 50%? Haha...

Wed, 08/01/2012 - 21:35 | 2670864 AU5K
AU5K's picture

100 Millions at risk?  How could something be at risk that never was to begin with?  This is everything that is wrong with the government.  Next they will spin it that "those most in need are being denied the education, food, fill in the blank, because of wall street".

Thu, 08/02/2012 - 00:25 | 2671155 The Monkey
The Monkey's picture

This is the kind of crap that completely exposes what Janet Yellen is really working toward - another bubble. Because somehow, pushing less astute investors all over the world into a stock that is "assumed" (by the STATE of CA) to be worth $35 or more is sensible policy?

Why do we put up with this? The state of California has been living high on the hog for years. It's true that it's a shoe-in for Obama, but that doesn't mean we shouldn't call a spade a spade:

Janet Yellen wants to use Fed policy to inflate stock values on behalf of CALPERS (who is using very aggressive foward growth assumptions) and the state of CA (who are including aggressive Facebook revenues in their tax assumptions).

LET'S CREATE ANOTHER BUBBLE SO WE CAN PUT OFF THE DIFFICULT WORK FOR ANOTHER DAY.

Wed, 08/01/2012 - 21:36 | 2670866 Catullus
Catullus's picture

California: you should have bought puts.

Sun, 08/12/2012 - 03:04 | 2698404 MSimon
MSimon's picture

Instead they bought putz.

Wed, 08/01/2012 - 21:38 | 2670870 RacerX
RacerX's picture

Couldn't happen to a nicer gov't. Hope nasty Pelosi, gov Moonbeam, and the rest of the ilk get theirs.

Wed, 08/01/2012 - 21:41 | 2670877 Seasmoke
Seasmoke's picture

when this final chapter is written, Zuckerberg is going to wish he never stole Facebook from the Winklevoss'

Wed, 08/01/2012 - 21:47 | 2670891 Bob
Bob's picture

he's gonna choke to death on the money?  Looks to me like bandits rule.

Thu, 08/02/2012 - 01:51 | 2671225 Renewable Life
Renewable Life's picture

Please, those Ivy League daddy's boys, could spell their own names and chew gum at the same time, when it came to coding!!!!

Those spoiled elitist clowns, thought because they came up with a thought, they owned Facebook, sorry idiot, you still have to actually build something in this country before you can own it!!!!

Thu, 08/02/2012 - 05:19 | 2671317 Disenchanted
Disenchanted's picture

 

 

So...the kosher elitist clown was the better choice all along?

Wed, 08/01/2012 - 21:42 | 2670879 LawsofPhysics
LawsofPhysics's picture

California, the poster child for living beyond your means, can I interest anyone in a jumbo arm?

Thu, 08/02/2012 - 01:12 | 2671195 Missiondweller
Missiondweller's picture

Man, you know it. Few people here are as rich as they pretend.

Thu, 08/02/2012 - 01:41 | 2671219 Edmon Plume
Edmon Plume's picture

As a tax slave I've already lost my hearing from the thunderclap of the jumbo glove at the end of that jumbo arm, and there's nothing left for you but some burnt entrails. 

But thanks anyway for the lovely offer.

Wed, 08/01/2012 - 21:43 | 2670880 FuzzyDunlop21
FuzzyDunlop21's picture

When does the lockout end? Doesnt one end in August? Im buying a shitload of puts whenever it is.

Wed, 08/01/2012 - 23:44 | 2671110 AlaricBalth
AlaricBalth's picture

Mid-August. Puts have started to reflect lock-up expiration.

Wed, 08/01/2012 - 21:46 | 2670886 tradewithdave
tradewithdave's picture

Wonder what they are saying on Facebook about Rand Paul's faceplant into an attempt to bully the independent media for asking tough questions?  Video here...

http://tradewithdave.com/?p=11310

 

Thu, 08/02/2012 - 01:25 | 2671210 Bringin It
Bringin It's picture

Dave - Great video. 

To the two down arrows, why don't you state what your beef with the video with is?  Very strange behavior.

Wed, 08/01/2012 - 21:45 | 2670887 Duke of Con Dao
Duke of Con Dao's picture

at the end of Shelley's book they left Victor's monster on an iceberg... how's that for continuity?

 "You Didn't Build That Frankenstein!' sez President Obama

- YouTube

Wed, 08/01/2012 - 21:48 | 2670892 ilovefreedom
ilovefreedom's picture

Don't count your chickens

Wed, 08/01/2012 - 21:53 | 2670904 GMadScientist
GMadScientist's picture

Take it out of Saverin's Brazilian ass!

Thu, 08/02/2012 - 01:53 | 2671226 Renewable Life
Renewable Life's picture

Who's looking like the smartest guy in the room right about now!!!!!!

Wed, 08/01/2012 - 21:54 | 2670906 capitallosses
capitallosses's picture

Just FYI, these thieves in Kalifornia tax long term capital gains the same as ordinary income.

Wed, 08/01/2012 - 21:57 | 2670920 LawsofPhysics
LawsofPhysics's picture

And they over price everything. Can I interest you in a jumbo arm?

Wed, 08/01/2012 - 21:55 | 2670911 Fecklesslackey
Fecklesslackey's picture

Like the FED the STATE should buy FB ... it rises to 42 ... STATE cashes out and gets tax revenue besides

Wed, 08/01/2012 - 21:58 | 2670922 americanspirit
americanspirit's picture

I wonder when some group in La La land is going to get it together and use the power of the Proposition to get a prop on the ballot to reduce the state budget to $1 and convene a constitutional assembly to re-write the state constitution, abolishing the legislature and the executive branch and returning governance to local communities. California should not exist as a state - it should be a republic, as it once was.

BTW I live in Texas and if there was any way that we could put such a measure to a vote you can bet that we would abolish the state and become a republic again too.

Wed, 08/01/2012 - 22:44 | 2671023 Totentänzerlied
Totentänzerlied's picture

Given a vote, Californians would make California a Democratic People's Republic in a heartbeat.

Wed, 08/01/2012 - 22:02 | 2670926 Azwethinkweiz
Azwethinkweiz's picture

San Bernardino, Calif. files emergency petition for bankruptcy in response to $45.8M budget shortfall - @NBCLA

Meredith Whitney must "LIKE" this :-)

Thu, 08/02/2012 - 07:41 | 2671038 ZeroAvatar
ZeroAvatar's picture

Maybe they can tax the dogfights.  I hear they're all the rage these days.  Or charge property taxes on the new shantytowns that are popping up.

Wed, 08/01/2012 - 22:04 | 2670934 buzzsaw99
buzzsaw99's picture

have calpers buy FB stock back up to $40 problem solved. [/sarc]

Wed, 08/01/2012 - 22:45 | 2671026 JLee2027
JLee2027's picture

They probably already own a boatload.

Wed, 08/01/2012 - 22:12 | 2670957 Bastiat
Bastiat's picture

They are sniffing big trouble in the mini sector: SEC is moving to upgrade muni disclosure.  Of course they won't be going after the Wall St. sleeze that loaded the munis with derivatives time bombs.

Wed, 08/01/2012 - 22:30 | 2670988 palmereldritch
palmereldritch's picture

The last time I saw anything suck so much off a face it had acid for blood.

Wed, 08/01/2012 - 22:31 | 2670990 czarangelus
czarangelus's picture

I live in Santa Cruz... and thank God I don't rely on the California state government for ANYTHING in the way of handouts.

Wed, 08/01/2012 - 22:33 | 2670995 moonstears
moonstears's picture

never heard 'cock a hoop' but it's damn funny!

Thu, 08/02/2012 - 10:09 | 2671069 Rattling Bones
Rattling Bones's picture

Last night I just happened to be reading "Eats, Shoots & Leaves" by Lynne Truss and she used the phrase "cock a hoop". That was the first time I had ever seen or heard the phrase; and here is the second.

So in 47 years I have come across the phrase twice...both times within the last 24 hours.

Strange.

 

Wed, 08/01/2012 - 22:41 | 2671015 Never One Roach
Never One Roach's picture
UK is dreaming too: Nationwide: House prices fall at fastest pace in three years UK house prices fell at their fastest annual pace in nearly three years in July

 

http://www.telegraph.co.uk/finance/economics/houseprices/9443141/Nationw...

Thu, 08/02/2012 - 00:45 | 2671177 RmcAZ
RmcAZ's picture

Good thing housing has bottomed.

Wed, 08/01/2012 - 22:48 | 2671035 PatientZero
PatientZero's picture

Yes, goyim! Now is the time to buy FB stock since it's so cheap! I promise it'll go up! Forget gold! (hehehe stupid Goyim)

Wed, 08/01/2012 - 22:50 | 2671037 sadpanda
sadpanda's picture

Well even if there was capital gains. I'm confident they would've just pissed money away. No big whoop. Just ponzi up some muni bonds; using government pension funds. We can fiat paper dat bitch over no problem comrades.

Wed, 08/01/2012 - 22:51 | 2671042 XtraBullish
XtraBullish's picture

If Mark's last name was McTavish, would we be hearing all of this garbage?

Thu, 08/02/2012 - 01:42 | 2671221 Morrotzo
Morrotzo's picture

Not really. Guys named McTavish tend to not get bankrolled by the CIA, NSA/NRA and Mossad while at Harvard. Mark McTavish sounds like a pretty honest name. The first result for the last name McTavish is for a surfboard company. I don't even think California and CALPERS would expect hundreds of millions of "revenue" from McTavish surfboards.

Long post short? JEW JEW JEW! THE FUCKING JEWS ARE OUR FUCKING MISFORTUNE!

 

 

Thu, 08/02/2012 - 09:42 | 2671920 lakecity55
lakecity55's picture

Zionist Jews are our misfortune.

Thu, 08/02/2012 - 05:42 | 2671328 Disenchanted
Disenchanted's picture

 

 

 

Why do you think MySpace died on the vine and FaceBerg bloomed?

 

Zuckerberg's mistake was marrying outside the tribe...you're seeing 'the elders' displeasure now(FB $20.xx/share)

 

I'd bet if Zuckerberg divorced his Asian shiksa, FB would head north of $40/share.

 

This is the same reason that Madoff is the only bigtime kosher crook doing serious time...he made the mistake of fucking over members of his own tribe, many of them elderly.

Wed, 08/01/2012 - 22:53 | 2671047 ejhickey
ejhickey's picture

WHOOPS!

Wed, 08/01/2012 - 22:58 | 2671050 ZeroAvatar
ZeroAvatar's picture

$20.88?  Short it down to $2.88.

 

'hundreds of millions' of dollars in assumed tax revenues may never materialize due to the continued slide in Facebook's stock price.

 

 

Awwww, pooor baby,  can't get the sheeple to play along anymore?   People are slowly catching on.  There IS hope!

Wed, 08/01/2012 - 23:33 | 2671101 Never One Roach
Never One Roach's picture
State deficit estimate hits $16 billion Surge from $9.2 billion in January

 

http://articles.latimes.com/2012/may/13/local/la-me-0513-state-deficit-2...

1% property taxes on 1990 house prices, decreasing corporate revenues and a relatively poor immigrant tax base = Massive Deficits.....common sense stuff.

Wed, 08/01/2012 - 22:56 | 2671051 Bunga Bunga
Bunga Bunga's picture

But but but their are still millionaires, aren't they?

Thu, 08/02/2012 - 01:48 | 2671224 Edmon Plume
Edmon Plume's picture

They will be if they spend themselves into prosperity.

Wed, 08/01/2012 - 23:07 | 2671066 booboo
booboo's picture

someone was extra bullish facetook

Wed, 08/01/2012 - 23:07 | 2671068 Downtoolong
Downtoolong's picture

Worse yet, CALPERS probably bought shares at $38 as an investment for the state employee pension fund.  

Wed, 08/01/2012 - 23:09 | 2671070 yogibear
yogibear's picture

What else would you expect from Hollywood or fantasyland ? The state can increase taxes on anyone left in CA in business and still making money.  Jerry Brown  keeps giving away free college education to non-citizens.

Collapse from within. 

 

Wed, 08/01/2012 - 23:13 | 2671076 ejmoosa
ejmoosa's picture

Even better, when these losses are realized, they can offset other gains.  It's gonna cost them more than they imagine.

Wed, 08/01/2012 - 23:29 | 2671099 Vidar
Vidar's picture

Too funny! The hollow shell of stateism is crumbling right in front of our eyes.

Wed, 08/01/2012 - 23:50 | 2671119 Atomizer
Atomizer's picture

Suckerberg was just laying the groundwork for the Chinese throwing their badminton game. When you hit the court and lose the game, you still get paid more than winning the match.

Wed, 08/01/2012 - 23:54 | 2671126 MedTechEntrepreneur
MedTechEntrepreneur's picture

Karma baby...

 

Wed, 08/01/2012 - 23:54 | 2671128 Doublescythe
Doublescythe's picture

Let's bottom line this shit.

California is fucked. Plain and simple.

The state has been run by financial microminds and economic imbeciles who lack the intellectual capacity to work a hp calculator.

And I know, I live here, but just bought a place in Singapore to make the jump when everything starts to unravel.

That said, socal bitches are the finest, so might as well partake while the partaking's good!

Thu, 08/02/2012 - 00:02 | 2671136 Dingleberry
Dingleberry's picture

Fuckers continually re-elect the Boxers, Pelosi's and Feinstein's of the world......encourage illegals to flood their prisons and schools and ERs......and wonder why they are broke despite having obscene tax rates? Fuck you, Cali. You deserve all this and more.

Thu, 08/02/2012 - 01:02 | 2671188 you enjoy myself
you enjoy myself's picture

coming soon to a theater in NYC, which depends on Wall St for maybe 25% of its revenue.  they won't even need the banks to collapse, just continue to move employees and offices to satellite states with half the tax burden and cost of living.  no one could have seen it coming...

Thu, 08/02/2012 - 01:08 | 2671194 Sylvia Plath
Sylvia Plath's picture

SEE MARK, YOUR ACTIONS AND EGO DO COST REAL PEOPLE REAL MONEY... THNX FOR NOTHING!

Thu, 08/02/2012 - 01:16 | 2671199 Yohimbo
Yohimbo's picture

why do I laugh like the sixties batman joker when I look at this chart.  

oh what glee, "lets put a smile on that face!"

 

P.S. - Fuck you Zuckerburg

Thu, 08/02/2012 - 01:37 | 2671218 Morrotzo
Morrotzo's picture

Wasn't that only the most OBVIOUS FUCKING THING IN THE WORLD?

If I could short the state of Commieforeigna I would short it to death. My Lord. FACEBOOK-GENERATED REVENUE! What the fuck could they be possibly thinking?

 

 

Thu, 08/02/2012 - 02:39 | 2671247 Element
Element's picture

You mean ... the fete of the State's finances is based on returns from the stock market casino?

</chortle>

Thu, 08/02/2012 - 02:43 | 2671251 Me_Myself_and_I
Me_Myself_and_I's picture

Well,  because the State of California is obviously run by mathematical geniuses.. I am just shocked, sir Tyler, Shocked!  That their forecasts of a 6-month future stock price could be wrong.

 

Thu, 08/02/2012 - 03:14 | 2671281 CalBear
CalBear's picture

Most entertaining thread I've read in a long time - thanks ZHers!

Thu, 08/02/2012 - 03:19 | 2671284 AnAnonymous
AnAnonymous's picture

IP is US citizen fabrication to hide their lack of goods to trade for.

Marketing depends on consumption. Marketing, that wonderful US citizen invention, intends to create demand where there is none.

Amazingly effective to boost consumption rate and therefore provide an effective tool in a race for depleting resources.

But what happens when consumption has to slow down because consumption level can no longer be sustained?

How works marketing when creating demand for goods that can not be provided because they are no longer there?

Marketing will be a large indicator of depletion of resources.

A firm basing its revenues on marketing payments like FB is going to be directly involved in answering a number of questions on the US citizen creature that is marketing.

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