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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 | Link to Comment fonzannoon
fonzannoon's picture

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

Wed, 08/01/2012 - 21:40 | Link to Comment wang (not verified)
Wed, 08/01/2012 - 21:57 | Link to Comment 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 | Link to Comment Precious
Precious's picture

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

Wed, 08/01/2012 - 22:37 | Link to Comment 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 | Link to Comment The Big Ching-aso
The Big Ching-aso's picture



California creaming on such a losers day.

Thu, 08/02/2012 - 00:01 | Link to Comment 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!!!!

Thu, 08/02/2012 - 00:17 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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.




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.



Thu, 08/02/2012 - 09:10 | Link to Comment 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 | Link to Comment 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 | Link to Comment carguym14
carguym14's picture

They should change the name to:

Legislative Mathematical Analyst's Office (LMAO)


Wed, 08/01/2012 - 23:30 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment mofreedom
mofreedom's picture

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

Wed, 08/01/2012 - 22:20 | Link to Comment gookempucky
gookempucky's picture

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

Thu, 08/02/2012 - 01:35 | Link to Comment monad
monad's picture

No Affirmative Action for Caucasian People

Thu, 08/02/2012 - 03:13 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment q99x2
q99x2's picture

FaceBook: the tax shelter of 2012.

Wed, 08/01/2012 - 21:25 | Link to Comment 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 bubble v2.0 stock does since its IPO.

Wed, 08/01/2012 - 21:33 | Link to Comment SHEEPFUKKER

Where is the Governator?

Wed, 08/01/2012 - 21:39 | Link to Comment nmewn
nmewn's picture

Dancing on Moonbeams?

Wed, 08/01/2012 - 22:03 | Link to Comment Marley
Marley's picture

Doing Amyl with his Enron creators.

Wed, 08/01/2012 - 22:10 | Link to Comment 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 | Link to Comment 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 | Link to Comment Hedgetard55
Hedgetard55's picture

They use IOUs instead.

Wed, 08/01/2012 - 23:59 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment goldfish1
goldfish1's picture

Yeah. Great places out west.


Thu, 08/02/2012 - 12:48 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 3ringmike
3ringmike's picture

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

Wed, 08/01/2012 - 22:09 | Link to Comment mendigo
mendigo's picture

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

Wed, 08/01/2012 - 22:36 | Link to Comment ZeroAvatar
ZeroAvatar's picture

Gimme $50 on Snakeyes.   . .

Wed, 08/01/2012 - 21:23 | Link to Comment 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 | Link to Comment max2205
max2205's picture

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

Wed, 08/01/2012 - 23:10 | Link to Comment Melin
Melin's picture

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

Wed, 08/01/2012 - 21:24 | Link to Comment JLee2027
JLee2027's picture

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

Wed, 08/01/2012 - 22:39 | Link to Comment ZeroAvatar
ZeroAvatar's picture

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

Wed, 08/01/2012 - 21:25 | Link to Comment 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 | Link to Comment GMadScientist
GMadScientist's picture

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

Thu, 08/02/2012 - 09:36 | Link to Comment sessinpo
sessinpo's picture

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

Wed, 08/01/2012 - 21:26 | Link to Comment 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 | Link to Comment nmewn
nmewn's picture

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

Wed, 08/01/2012 - 21:25 | Link to Comment 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 | Link to Comment 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 | Link to Comment fourchan
fourchan's picture

its maxine waters fault

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

Wets her pants-maximum all DEPENDS.

Wed, 08/01/2012 - 21:26 | Link to Comment 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 | Link to Comment 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... . Pay especial attention to Section III, the financial plans.

Wed, 08/01/2012 - 22:12 | Link to Comment 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 | Link to Comment bigwavedave
bigwavedave's picture

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

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

witty.... not, small fish.

Thu, 08/02/2012 - 07:02 | Link to Comment JoBob
JoBob's picture

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

Wed, 08/01/2012 - 23:36 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment Seasmoke
Seasmoke's picture

That was Henny

Wed, 08/01/2012 - 22:36 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment Jethro
Jethro's picture

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

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

FB down 50%? Haha...

Wed, 08/01/2012 - 21:35 | Link to Comment 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 | Link to Comment 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).


Wed, 08/01/2012 - 21:36 | Link to Comment Catullus
Catullus's picture

California: you should have bought puts.

Sun, 08/12/2012 - 03:04 | Link to Comment MSimon
MSimon's picture

Instead they bought putz.

Wed, 08/01/2012 - 21:38 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment Disenchanted
Disenchanted's picture



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

Wed, 08/01/2012 - 21:42 | Link to Comment 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 | Link to Comment Missiondweller
Missiondweller's picture

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

Thu, 08/02/2012 - 01:41 | Link to Comment 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 | Link to Comment 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 | Link to Comment AlaricBalth
AlaricBalth's picture

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

Wed, 08/01/2012 - 21:46 | Link to Comment 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...


Thu, 08/02/2012 - 01:25 | Link to Comment 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 | Link to Comment 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 | Link to Comment ilovefreedom
ilovefreedom's picture

Don't count your chickens

Wed, 08/01/2012 - 21:53 | Link to Comment GMadScientist
GMadScientist's picture

Take it out of Saverin's Brazilian ass!

Thu, 08/02/2012 - 01:53 | Link to Comment 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 | Link to Comment 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 | Link to Comment LawsofPhysics
LawsofPhysics's picture

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

Wed, 08/01/2012 - 21:55 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment buzzsaw99
buzzsaw99's picture

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

Wed, 08/01/2012 - 22:45 | Link to Comment JLee2027
JLee2027's picture

They probably already own a boatload.

Wed, 08/01/2012 - 22:12 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment moonstears
moonstears's picture

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

Thu, 08/02/2012 - 10:09 | Link to Comment 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.



Wed, 08/01/2012 - 22:41 | Link to Comment 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

Thu, 08/02/2012 - 00:45 | Link to Comment RmcAZ
RmcAZ's picture

Good thing housing has bottomed.

Wed, 08/01/2012 - 22:48 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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.




Thu, 08/02/2012 - 09:42 | Link to Comment lakecity55
lakecity55's picture

Zionist Jews are our misfortune.

Thu, 08/02/2012 - 05:42 | Link to Comment Disenchanted
Disenchanted's picture




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


Zuckerberg's mistake was marrying outside the'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 | Link to Comment ejhickey
ejhickey's picture


Wed, 08/01/2012 - 22:58 | Link to Comment 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 | Link to Comment Never One Roach
Never One Roach's picture
State deficit estimate hits $16 billion Surge from $9.2 billion in January

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 | Link to Comment Bunga Bunga
Bunga Bunga's picture

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

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

They will be if they spend themselves into prosperity.

Wed, 08/01/2012 - 23:07 | Link to Comment booboo
booboo's picture

someone was extra bullish facetook

Wed, 08/01/2012 - 23:07 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment MedTechEntrepreneur
MedTechEntrepreneur's picture

Karma baby...


Wed, 08/01/2012 - 23:54 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment Sylvia Plath
Sylvia Plath's picture


Thu, 08/02/2012 - 01:16 | Link to Comment 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 | Link to Comment 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 | Link to Comment Element
Element's picture

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


Thu, 08/02/2012 - 02:43 | Link to Comment 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 | Link to Comment CalBear
CalBear's picture

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

Thu, 08/02/2012 - 03:19 | Link to Comment 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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