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"Retroactive Market Conditions": Nasdaq Says Would Have Called Off FaceBook IPO If It Knew Then What It Knows Now

Tyler Durden's picture





 

First of all, let's get one thing straight: if instead of about to breach a 20-handle, the Facebook stock price was in the $60, nobody would care about anything that happened in the past 3 days, everyone would be happy and delighted, and increasing the velocity of money with the comfort that some greater fool would be willing to pay even more for ridiculous overvalued ponzi, pardon, portfolio holdings. Alas, we are not there, and as a result, the fingerpointing phase has come and gone. Now come the lawsuits, because people, led to believe in huge short-term profits, are now faced to face with a grim sur-reality in which the tooth fairy was just exposed as the cookie monster. And the latest farcical development: Nasdaq finally pulling market conditions, but not just any market conditions - retroactive ones.

As the WSJ reports: "A senior Nasdaq Stock Market official told customers Tuesday afternoon that it would have pulled the plug on Facebook Inc.'s initial public offering had it known the full extent of the technical problems that plagued its systems. On a conference call with brokers after Tuesday's close, Eric Noll, head of transaction services, said the exchange "by no means would have gone forward" with the much-watched Facebook debut if it had known problems would disrupt a "normal trading day." "In retrospect, it was incorrect," Mr. Noll said of Nasdaq's interpretation of problems." At this point every plaintif's bar attorney eyes just lit up, because what Nasdaq just admitted was liability. And every single retail investor who has lost money, which would be everyone who has bought and held as the stock closed at a fresh all time (read 2.7 day) low, will now demand that had they known what the Nasdaq pretended not to know, but now knows, they would not have put that limit $43 buy order. In the meantime, the actual stock price of Facebook will flounder as the stock becomes a whipping boy if not for investors, then for attorneys everywhere.

More from the WSJ:

Nasdaq said it can't promise customers they will be compensated for losses due to its IPO system failures.

 

We don't ultimately know whether everyone will get a dollar on the dollar," Mr. Noll said, saying the ultimate payouts will depend on regulatory approval and sign-off from Nasdaq's own board.

 

The exchange operator has been in touch with Facebook since the IPO blunder last week, according to Mr. Noll, and those conversations were "ongoing," he told brokers on the conference call.

 

When asked why Nasdaq hadn't tested for the high levels of order cancellations that it said drove the technical problems with Facebook's IPO opening, Mr. Noll said on the conference call that exchange officials believed they had sought to address such potential issues.

We'll give the Nasdaq one thing though: unlike everyone else in this day and age, whose primary recourse is to scapegoat, and to deflect blame, Nasdaq refused to bash that one whipping boy for all things market structure (which Zero Hedge first warned about over 3 years ago): high frequency trading.

High-frequency trading firms, known for the heavy burden they place on exchange systems, played no role in Nasdaq's problems opening up Facebook's shares for trading Friday morning, Mr. Noll said on the conference call. Most such firms do their trading after stocks open on the broader U.S. markets, Mr. Noll told member firms, and there were no signs that any were active as Nasdaq struggled to match up buy and sell orders to form the opening trade in Facebook.

Sadly, something tells us that the final outcome of this debacle will be the end of the Nasdaq which will soon be BATS'ed out of existence, but not due to faulty algos originating on the NYSE or Sigma X, but because the firm will soon be sued to liquidation.

Which a world in which virtually no retail investors are left, is probably very much overdue.

* * *

Still why didn't Nasdaq, or Morgan Stanley, do pull a "market conditions" on Friday? Here is how we laid it out.

In retrospect, the current outcome will likely turn out even worse for investors' faith and sentiment in the farce known as the capital markets.

 


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Tue, 05/22/2012 - 18:08 | Link to Comment CaptFufflePants
CaptFufflePants's picture

How long before FB sues MS for irreparable harm to the company name after the failed IPO?

Tue, 05/22/2012 - 18:14 | Link to Comment jekyll island
jekyll island's picture

This is from the CNBS website:  

“My best guess—and it’s just a guess at this point—is that losses similar to those claimed by that investor may total between $50 and $100 million,” said Rich Repetto, the well-known expert on trading and exchanges at Sandler O’Neill.

 Repetto, along with many other traders with first-hand or second hand experience, are among those that believe this alert could have inadvertently caused Monday’s run on the stock. The share price is still below Monday’s low.

The irony is that “the likelihood of (the investor) getting full restitution is very unlikely,” Repetto says.

The reason: Nasdaq’s liability for technical issues is limited to a mere $3 million per month. The exchange itself is pushing regulators to allow it to pay out $10 million more in this particular high-profile case.

 

Tue, 05/22/2012 - 18:17 | Link to Comment jekyll island
Tue, 05/22/2012 - 18:27 | Link to Comment The Big Ching-aso
The Big Ching-aso's picture

 

 

WTF.  It's like the entire market's rationally unexuberant & now the Greenspans of the world want us 2 go irrationally exuberant again.

Tue, 05/22/2012 - 18:27 | Link to Comment Richard Chesler
Richard Chesler's picture

What's a market?

Tue, 05/22/2012 - 18:32 | Link to Comment The Big Ching-aso
The Big Ching-aso's picture

 

 

I think it's where people meet 2 buy & sell goods & services 2 one another without getting incessantly ripped off.  Oops.

Tue, 05/22/2012 - 18:41 | Link to Comment Caviar Emptor
Caviar Emptor's picture

See it's like this: this is the WS 'mea culpa' in exchange for the entire financial crisis, mortgage and securitization debacles, and generally running the country into the ground so that a bunch of guys could do hookers and blow for the next few years aboard their yachts floating on the Mediterranean. "Please blame us for this and make us look bad so that you all people can forget the big stuff we got away with. Let us have it for this one (which will amount to nothing)" It's like pleading guilty to a lesser charge and getting away with a suspended sentence. 

Tue, 05/22/2012 - 18:45 | Link to Comment The Big Ching-aso
The Big Ching-aso's picture

 

 

".......so that a bunch of guys could do hookers and blow for the next few years aboard their yachts floating on the Mediterranean." 

Ok, so what you're saying is that this is all going to a good criminal cause then.

Tue, 05/22/2012 - 18:52 | Link to Comment Caviar Emptor
Caviar Emptor's picture

Shit yeah. I want to make sure that I live in a country where winners get to do hookers and blow for life. Even if what they do hurts the country, it's worth it because it fulfills the pure free market wet dream: fooling all of the people all of time without even using any lube. 

Tue, 05/22/2012 - 18:56 | Link to Comment The Big Ching-aso
The Big Ching-aso's picture

 

 

It's a beautiful phucking thing man when your illegal wet dreams come true.   What a country.

Tue, 05/22/2012 - 19:03 | Link to Comment Caviar Emptor
Caviar Emptor's picture

Faace Boook 'ha been bery bery goood to me

Tue, 05/22/2012 - 19:34 | Link to Comment The Big Ching-aso
The Big Ching-aso's picture

 

 

Ya hit that one outta the turd world park.

Tue, 05/22/2012 - 19:11 | Link to Comment Global Hunter
Global Hunter's picture

+1

"Gona get me a shotgun and shoot all the (fill in the blanks) that I see"

Wed, 05/23/2012 - 20:01 | Link to Comment StychoKiller
StychoKiller's picture

My Gawd!  If  I'd only known that stawks could go down after I bought'em, I'd be hirin' me a herd o' liars.  Makes ya wonder just who

got the good prices while Morgan Stanley was proppin' up the FB tape...

Wed, 05/23/2012 - 20:03 | Link to Comment StychoKiller
StychoKiller's picture

This is just like the idjuts that buy Windoze OS the minute they go on sale, expecting trouble-free operation -- it don't work that way on my planet! :>D

Tue, 05/22/2012 - 18:42 | Link to Comment rocker
rocker's picture

What's a WSJ and who cares what they have to say.

Nothing to do or see about this FB circus.

Maybe the public will now see what we all already know.

The Hedge Funds, the HFTs and Trading Desk at your local bank made a fortune gumming up the system.

Tue, 05/22/2012 - 18:58 | Link to Comment OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

Nothing but a new way to take away people's cash.

You guys will love this one:

http://www.newschannel5.com/story/18241221/man-loses-22000-in-new-polici...

 

Tue, 05/22/2012 - 20:05 | Link to Comment Bobbyrib
Bobbyrib's picture

I'm not surprised.

Tue, 05/22/2012 - 19:00 | Link to Comment The Big Ching-aso
The Big Ching-aso's picture

 

 

Well on the bright side, things aren't as bad as Japan with their 'Radioactive Market Conditions'.

Tue, 05/22/2012 - 18:34 | Link to Comment Manthong
Manthong's picture

So how is it the COMEX in not in the same trick bag after the MF debacle?

Tue, 05/22/2012 - 18:54 | Link to Comment Ident 7777 economy
Ident 7777 economy's picture

 

 

 

That's something we ALL want to know ...

 

 

Tue, 05/22/2012 - 18:46 | Link to Comment ITrustMyGut
ITrustMyGut's picture

I actually believe this is purposful...

.. they are pushing the market towards "Irrationally unexuberant"

creative destruction! Like Greece being purposfully being thrown under the bus, then Gov chaos, to politically assume Greece...

http://www.thecrimson.com/article/2012/5/1/ten-questions-kissinger/    Note HK's response in the 2nd to last paragraph...

Tue, 05/22/2012 - 18:22 | Link to Comment SHEEPFUKKER
SHEEPFUKKER's picture

Oh joy, here we go.  The land of the free and the home of the eternal lawsuits.  Can't wait, banksters litigating other banksters into oblivion. 

Tue, 05/22/2012 - 18:39 | Link to Comment vast-dom
vast-dom's picture

SHORT NASDAQ NOW! YOU MOTHERFUCKING BITCHES!

Tue, 05/22/2012 - 20:43 | Link to Comment PrinceDraxx
PrinceDraxx's picture

I haven't ever made a recommendation here. However, for my debut recommendation, I am going to suggest shorting FB until it is at least down in the mid-teens.

Disclosure:

I do not have any trades in place on FB and am not contemplating any trades.

Tue, 05/22/2012 - 19:54 | Link to Comment Buck Johnson
Buck Johnson's picture

Nasdaq is going to be sued into liquidation, big time.  Either they sue the HFT companies for screwing up their systems (if they can) or they bite the bullet and go out of business.  Also could someone tell me why did Facebook wait until 11:06 am to start trading for the stock.  I thought that many IPO's love to start at the start of business which is 9:30 am.  I think they wanted it late so that the people who bought  the stock wouldn't swamp the system with sell orders when the problems start and they start to realize the revenue and profit is two different things for the company.

Tue, 05/22/2012 - 18:21 | Link to Comment The trend is yo...
The trend is your friend's picture

I wonder what role the squid Goldman had in all this.  i find it hard to believe this was all Morgan Stanley's fault

Tue, 05/22/2012 - 18:44 | Link to Comment Unprepared
Unprepared's picture

While we are at finger pointing and eye poking, weren't the technical issues a result of an avenging raid from a known NASDAQ competitor?

Tue, 05/22/2012 - 18:49 | Link to Comment francis_sawyer
francis_sawyer's picture

Exclusive!

Here is some forensic video of what actually happened...

http://www.youtube.com/watch?v=41lTZaHMTCw&feature=related

Tue, 05/22/2012 - 18:09 | Link to Comment SilverTree
SilverTree's picture

20/20 Bitches!

Tue, 05/22/2012 - 18:16 | Link to Comment CvlDobd
CvlDobd's picture

fail

Tue, 05/22/2012 - 18:18 | Link to Comment SilverTree
SilverTree's picture

Well, I tryed.

Tue, 05/22/2012 - 18:20 | Link to Comment CvlDobd
CvlDobd's picture

lol

 

It's bitchez, with a Z, around these parts.

Tue, 05/22/2012 - 18:24 | Link to Comment The Big Ching-aso
The Big Ching-aso's picture

 

 

Where are they gonna find enough new suckers to get this stock erect again?

Tue, 05/22/2012 - 18:39 | Link to Comment CvlDobd
CvlDobd's picture

http://www.babycenter.com/0_surprising-facts-about-birth-in-the-united-s...

 

Think of all the future revenue sources, uh I mean users.

 

I will say FB is way overvalued here but... They need to leverage their penetration and compete with Visa, PayPal, and JP Morgan/Wells/Citi/BoA and work on payments and online banking. That is where the money could be made. Fuck click through ads. What a waste of potential revenue this company is right now.

Tue, 05/22/2012 - 18:48 | Link to Comment The Big Ching-aso
The Big Ching-aso's picture

 

 

WTF.   I thought FB was all about people connecting with other people and not connecting with their bank?

Tue, 05/22/2012 - 19:11 | Link to Comment CvlDobd
CvlDobd's picture

I'm just talking about making money.

GE used to be an industrial company.

Tue, 05/22/2012 - 19:14 | Link to Comment The Big Ching-aso
The Big Ching-aso's picture

 

 

Oh.   So like FB could evolve into another giant faceless conglomerate disconnecting people from one another to make a buck.   Makes sense.

Tue, 05/22/2012 - 19:20 | Link to Comment CvlDobd
CvlDobd's picture

Exactly.

I'm not saying it's right. I am saying that most financial firms would KILL for facebook type penetration and data to maximize the cross sell. If they are serious about maximizing shareholder value they would at least attempt to compete with Visa or PayPal.

People talk about not trusting Facebook. Is it any worse to trust Facebook with financial info than say JP Morgan? I would argue it isn't.

http://www.youtube.com/watch?v=YUhb0XII93I

The market penetration could be incredibly valuable.

Tue, 05/22/2012 - 20:12 | Link to Comment CClarity
CClarity's picture

Here's how they'll do it . . . and it's genius.  Through their authentication program.  That how you can sign into many other sites via FB now, without having to have lots of user IDs and passwords, just gotta remember FBs. Can do with Twitter and Linkin and others too.   Users doing it all the time already, so they "trust" the FB authentication process of knowing who is on board and driving actions.  Afterall, FB knows more about its user (for fraud purposes and user authentication or verification) than VISA or Mastercard or Safeway or any of those others that are merely a 16 digit number.  

If they start to use a further improved authentication process for payments . . . and they have nearly 1 Billion users/customers . . . they could be a gigantic financial machine, payment service, supermarket - many things.  This model, more than the advertising monetization, is what the believers in FB whisper about.  And, people talk of FB as a product, a service, a communication vehicle, and a community center.  Can't recall people speaking of BAC or JPM or VISA or NETFLIX or COMCAST or TARGET in similar terms.  

Yes, privacy concerns and issues remain, but FB is further ahead on this than most.

Tue, 05/22/2012 - 20:23 | Link to Comment CvlDobd
CvlDobd's picture

CClarity,  you hit the nail on the head.

Tue, 05/22/2012 - 22:06 | Link to Comment ITrustMyGut
ITrustMyGut's picture

wow.. Great insight! I concur with this idea as its real motive! +1

Tue, 05/22/2012 - 19:21 | Link to Comment hack3434
hack3434's picture

Half the users are under 25. Those that are over 25 only got there to a) Stalk old gfs/bfs b) Find an affair c) Family (least popular). Monetize that!

Tue, 05/22/2012 - 20:34 | Link to Comment PrinceDraxx
PrinceDraxx's picture

Actually, I'd be surprised if Facebook has half of the users they claim they do. I know a crapload of users who play games with multiple accounts. After all, you don't have to produce ID to sign up, just a user name and an email account.

Tue, 05/22/2012 - 18:56 | Link to Comment NumberNone
NumberNone's picture

Who knew the market was run by Captain Hindsight?  My hero...jump to 1 minute in the video.

http://www.southparkstudios.com/clips/360430/captain-hindsight 

 

Tue, 05/22/2012 - 18:10 | Link to Comment EscapeKey
EscapeKey's picture

"We're incompetent, but really sorry".

Gee I'm sure that makes Zuckerberg's suckers feel better about the situation.

Tue, 05/22/2012 - 18:30 | Link to Comment Bollixed
Bollixed's picture

Looks like Madoff is still running the joint...

Tue, 05/22/2012 - 20:08 | Link to Comment Bobbyrib
Bobbyrib's picture

They're not sorry.

Wed, 05/23/2012 - 00:33 | Link to Comment Kiwi Pete
Kiwi Pete's picture

Maybe Mr Zuckerberg will give some of the money back to his new shareholders. He seems like a nice guy.

 

 

Tue, 05/22/2012 - 18:13 | Link to Comment francis_sawyer
francis_sawyer's picture

If I knew then what I know now, I would have never let (H.R. 7837, 1913) go through either... 

Tue, 05/22/2012 - 18:12 | Link to Comment holdbuysell
holdbuysell's picture

We really are at Peak Idiocy.

Tue, 05/22/2012 - 18:17 | Link to Comment Diet Coke and F...
Diet Coke and Floozies's picture

Not possible as long as the human population grows

Tue, 05/22/2012 - 18:17 | Link to Comment Overfed
Overfed's picture

Let's hope.

Tue, 05/22/2012 - 18:20 | Link to Comment 12ToothAssassin
12ToothAssassin's picture

Unfortunately I think you are wrong on that peak call.

Tue, 05/22/2012 - 18:28 | Link to Comment francis_sawyer
francis_sawyer's picture

Let's examine the facts...

- Government appears to still be growing

Conclusion: We have yet to reach peak idiocy

Tue, 05/22/2012 - 18:31 | Link to Comment The Big Ching-aso
The Big Ching-aso's picture

 

 

This market makes garage sales look like Bloomingdale's.

Tue, 05/22/2012 - 18:14 | Link to Comment cossack55
cossack55's picture

Paper always reverts to its intrinsic value. Say what?????? Desperation breeds buffoons.

Tue, 05/22/2012 - 18:14 | Link to Comment bnbdnb
bnbdnb's picture

Me thinks someone doesn't want retail in the stock market anymore.

Tue, 05/22/2012 - 18:14 | Link to Comment Rainman
Rainman's picture

By law the brokers need to pay up to their clients. Then the brokerage needs to squeeze the exchange to get paid. This'll get interesting. Booyah...the lawyers get rich er .

Tue, 05/22/2012 - 18:15 | Link to Comment BobPaulson
BobPaulson's picture

Here the MSM is just noticing Faceplant stocks are at 31 bucks, like 2 days after the rout. So we know the KoolAid lasts 2 days, more or less.

Tue, 05/22/2012 - 18:20 | Link to Comment EscapeKey
EscapeKey's picture

that's still better than expected, though.

Tue, 05/22/2012 - 18:16 | Link to Comment Diet Coke and F...
Diet Coke and Floozies's picture

Sued to liquidation, bitchez!

Tue, 05/22/2012 - 18:17 | Link to Comment francis_sawyer
francis_sawyer's picture

"Sadly, something tells us that the final outcome of this debacle will be the end of the Nasdaq which will soon be BATS'ed out of existence"

~~~

Oh good... So does that mean that they'll just move the "Fast Money" show over to the nearest Scores Club?

Tue, 05/22/2012 - 18:18 | Link to Comment KandiRaverHipster
KandiRaverHipster's picture

rar.  the IPO syndicate got ripped off so they go to the exchange and demand a refund!

Tue, 05/22/2012 - 18:19 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

Can one even say the phrase, "a sure thing that went south," in yiddish without using the word advokat?

Tue, 05/22/2012 - 18:19 | Link to Comment Hobbleknee
Hobbleknee's picture

This is pure comedy.

Tue, 05/22/2012 - 18:45 | Link to Comment Fox-Scully
Fox-Scully's picture

Shakespeare would have enjoyed this and put it to a play and Mozart would have done the music!

Tue, 05/22/2012 - 18:19 | Link to Comment i love cholas
i love cholas's picture

So because the stock went down instead of up people will demand their money back. Isn't that the risk of investing? The assumption that the exchange is running according to plan is a risk.

Tue, 05/22/2012 - 18:39 | Link to Comment francis_sawyer
francis_sawyer's picture

If that's the case, then Bernanke ought to be listed as a co-defendant...

Tue, 05/22/2012 - 18:20 | Link to Comment JLee2027
JLee2027's picture

Too many sellers = Technical Issues.

Tue, 05/22/2012 - 18:46 | Link to Comment Matt
Matt's picture

Actually, it seems the problem here was too many canceled buy orders. 

Tue, 05/22/2012 - 18:20 | Link to Comment Politeyx
Politeyx's picture

Just goes to show; you can't tell a faceBOOK by it's cover.

Tue, 05/22/2012 - 18:20 | Link to Comment jus_lite_reading
jus_lite_reading's picture

So valuations mean nothing?

Happy ponzi ponzi, Wall Street scoundrels!!

Tue, 05/22/2012 - 18:20 | Link to Comment nanex
nanex's picture

Oh, so now there were other problems? How about the 17 full seconds of no quotes or trades for ANY U.S. stock from Nasdaq right before Facebook opens? Did someone at Nasdaq decide to reboot.. entire.. systems? Data doesn't lie:

 

http://www.nanex.net/aqck/3122.html

 

Tue, 05/22/2012 - 18:28 | Link to Comment ebworthen
ebworthen's picture

Skynet took over there; determined the square root of pie, the meaning of infinity, and that the insiders could sell FB at $41.50.

Tue, 05/22/2012 - 18:41 | Link to Comment francis_sawyer
francis_sawyer's picture

& then they divided by zero...

Tue, 05/22/2012 - 18:20 | Link to Comment e-man
e-man's picture

Now that all this is behind us, I wonder if the retail investor will finally come back to...oh wait.

Tue, 05/22/2012 - 18:21 | Link to Comment ebworthen
ebworthen's picture

CORZINED!

No doubt there is some sliver spoon trust fund baby out there who put down a $1 million dollar bet on Farcebook; but who also has another $10 million to spend on lawyers.

Tue, 05/22/2012 - 18:21 | Link to Comment chet
chet's picture

Don't you need an legitimate market to have a market failure?

Tue, 05/22/2012 - 18:21 | Link to Comment devo
devo's picture

This FB IPO is fascinating. Clearly they tried to sell the hype and failed. Clearly they tried to sell the hype and failed because retail is now the smart money. Bizarro world.

Tue, 05/22/2012 - 20:09 | Link to Comment Bobbyrib
Bobbyrib's picture

They didn't fail, the retail investor fell for it hook, line, and sinker.

Tue, 05/22/2012 - 18:22 | Link to Comment Bay of Pigs
Bay of Pigs's picture

This is your Captain speaking, abandon ship.

Tue, 05/22/2012 - 18:36 | Link to Comment The Big Ching-aso
The Big Ching-aso's picture

 

 

What ship?

Tue, 05/22/2012 - 21:39 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

"Technicians of spaceship earth, this is your captain speaking: your captain is dead."

 

Tue, 05/22/2012 - 18:22 | Link to Comment i love cholas
i love cholas's picture

When a slot machine wrongly pays a jackpot the casino tells the gambler to fuck off. Nasdaq should do the same.

Tue, 05/22/2012 - 18:22 | Link to Comment bahaar
bahaar's picture

I thought Nasdaq limited it's liability.

Tue, 05/22/2012 - 18:31 | Link to Comment TideFighter
TideFighter's picture

Apparently, it liabled its limit.

Tue, 05/22/2012 - 18:29 | Link to Comment blunderdog
blunderdog's picture

They should just cancel those trades and have a do-over.  It was only a few hundred million transactions, right?  I'm sure everyone kept their receipts.

Tue, 05/22/2012 - 18:30 | Link to Comment Divine Wind
Divine Wind's picture

Our firm had previously been in talks with FB about advertising.

Just trying to get someone on the phone was a pain in the ass and took weeks.

Decided we would pass on FB and spend the dollars elsewhere.

This was months ago.

Earlier today they called my cell. I let it ring. They left no message.

I wonder what they possible could have wanted?????

 

Tue, 05/22/2012 - 18:31 | Link to Comment razorthin
razorthin's picture

Entitlement mentality crybabies, pacified by a Fed-inspired perception of no risk.  Go fukk yourselves.

Tue, 05/22/2012 - 18:31 | Link to Comment I am a Man I am...
I am a Man I am Forty's picture

The large financial institutions are total fuck ups.  They get every advantage in the book, a shit ton of leverage, free money, absurd compensation, a captured government, the best lobbyists money can buy, and these dip shits are still going down the shit shoot, look at their fucking stock prices for christ sake.  Fucking hilarious.

Tue, 05/22/2012 - 18:33 | Link to Comment dark pools of soros
dark pools of soros's picture

there is no shame or grace in these current thieves.  I said the market will be propped up until Facebook gets its bagholders and they did and don't give a damn how they shit the bed doing it

 

Tue, 05/22/2012 - 18:46 | Link to Comment walküre
walküre's picture

+1 for using "shame" and "grace" in the context of Wall Street

not in a trillion years

Tue, 05/22/2012 - 18:37 | Link to Comment I should be working
I should be working's picture

I'm gonna laugh when FB becomes a penny stock. Might happen by Friday at this rate...

Tue, 05/22/2012 - 20:21 | Link to Comment lotsoffun
lotsoffun's picture

why not?  'bastions' such as jpm and bac trade up and down 2,3,4,5% everyday like penny stocks.  why?  because they are?  nobody has any real idea what they earn. or lose. or anything.  and if they lose, then fine, bailout, everybody else sold off, so i'll grab the btfd.  so manipulated.  these are huge corporations.  where is capitalism?

 

 

Tue, 05/22/2012 - 18:41 | Link to Comment Plumplechook
Plumplechook's picture

The fact is Faceplant was a ridiculous investment,  regardless of any initial trading problems on NASDAQ.   The stock was always going to plunge once people wised-up to the preposterous over-valuation of a faddish 'social network' that produces nothing and has no viable long-term business model.

All these early investors who are now whining should just shut-the-fuck up and eat their loses - a just reward for rampant stupidity.

 

 

Tue, 05/22/2012 - 18:44 | Link to Comment tawse57
tawse57's picture

This guy is miffed that he bought FB

http://farm8.staticflickr.com/7235/7248085914_5d84d71105_z.jpg

 

Tue, 05/22/2012 - 20:29 | Link to Comment PrinceDraxx
PrinceDraxx's picture

He'll be okay. Nasdaq will return his money as a show of good faith the overseas investors.

Tue, 05/22/2012 - 18:44 | Link to Comment Red Heeler
Red Heeler's picture

Bullish gold.

Tue, 05/22/2012 - 18:45 | Link to Comment billsykes
billsykes's picture

I don't know about penny- look at AOL's P/E, I thought everyone was off dialup, yet 85x

(all useless tech stocks)

 

 

Tue, 05/22/2012 - 18:53 | Link to Comment ZeroAvatar
ZeroAvatar's picture

Zuckers:  There's (226) born every minute! (Hat Tip PT Barnum, back when we weren't living in a rat maze).

Tue, 05/22/2012 - 19:00 | Link to Comment Dr. Engali
Dr. Engali's picture

Hmmmm maybe it wasn't such a good idea for the NASDAQ to fuck with the Bats IPO. Karma can be a bitch.

Tue, 05/22/2012 - 19:00 | Link to Comment Salt
Salt's picture

Pure popcorn. It's the added butter and salt thats dragging FB down.

Tue, 05/22/2012 - 19:02 | Link to Comment Downtoolong
Downtoolong's picture

OK you caught me in a lie so I'm recalling that lie. Trust me on this, I know what I'm doing.

 

Tue, 05/22/2012 - 19:03 | Link to Comment Pairadimes
Pairadimes's picture

Fleecebook.

Tue, 05/22/2012 - 20:26 | Link to Comment samwell
samwell's picture

FACEPLANT!!!

zUCKERFUCK is having his bad Karma come back into the room now.  I guess he is a "dumb fuck" along with his clueless users.  Fuckbook will be an also ran, had been within a year as the ravages of the Greatest depression take their toll on real companies advertising budgets.  

Tue, 05/22/2012 - 20:26 | Link to Comment samwell
samwell's picture

FACEPLANT!!!

zUCKERFUCK is having his bad Karma come back into the room now.  I guess he is a "dumb fuck" along with his clueless users.  Fuckbook will be an also ran, had been within a year as the ravages of the Greatest depression take their toll on real companies advertising budgets.  

Tue, 05/22/2012 - 19:21 | Link to Comment Sutton
Sutton's picture

FB should have used BATS.

Tue, 05/22/2012 - 21:07 | Link to Comment jus_lite_reading
jus_lite_reading's picture

Hehe that is funny!! +1

Tue, 05/22/2012 - 19:51 | Link to Comment SILVERGEDDON
SILVERGEDDON's picture

If an IPO falls on it's Facebook on Wall Street, does any body hear it ? Anybody ? Is anybody out there ?                   Full blown Mexican retail SARC !

Now all your money belongs to us, buitchez !  Thank you very much, Goldman Sachs, and Friends. 

Tue, 05/22/2012 - 19:53 | Link to Comment Dr. No
Dr. No's picture

What do technical problems have to do with no one wanting the buy the stock?  They are trying to blame exhanges for crappy stock price.  God forbid some one actually acknowledge the stock is a pooch.

Tue, 05/22/2012 - 19:54 | Link to Comment Chippewa Partners
Chippewa Partners's picture

So did you buy Facebook at $39.0004 or $39.00055?  

Go ahead, ask your algo.  And get a time and tape on that.

Tue, 05/22/2012 - 20:07 | Link to Comment Westcoastliberal
Westcoastliberal's picture

All you need to know about Facebook is how do they actually make money.  Answer: Ads and game upgrades (which may only be commissions), I haven't read their SEC stuff.  But just knowing that was enough to keep me away.  Is FB really worth more than McDonalds (a cash machine if there ever was one).  C'mon!

Tue, 05/22/2012 - 20:16 | Link to Comment lotsoffun
lotsoffun's picture

hopefully -nasdaq will keep outsourcing their technology resources to india because it is CHEAP.  and they will keep testing their 'systems' to be fully capable of handling any order flow.  nice job india.  worth every penny we saved.

 

Tue, 05/22/2012 - 20:18 | Link to Comment lotsoffun
lotsoffun's picture

oh..  i forgot.  and thanks nasdaq for the h1b visas also - because if americans can't outsource, might as well bring an indian here and do it cheaper.

 

Tue, 05/22/2012 - 20:13 | Link to Comment John Law Lives
John Law Lives's picture

"First of all, let's get one thing straight: if instead of about to breach a 20-handle, the Facebook stock price was in the $60, nobody would care about anything that happened in the past 3 days, everyone would be happy and delighted, and increasing the velocity of money with the comfort that some greater fool would be willing to pay even more for ridiculous overvalued ponzi, pardon, portfolio holdings."  -  ZH

This one sentence should qualify this article for a Pulitzer Prize... and this sentence is goddam right on the money.  Nobody would give a damn about any such "shenanigans" if the stock price of FB had soared.

Tue, 05/22/2012 - 20:18 | Link to Comment blindman
blindman's picture

Ronnie Lane - Ooh la la (live @ BBC 1974)
http://www.youtube.com/watch?v=24jcIQiP01A
.
but, can you deal with this?
a moment of truth , in and out, of time
and the face iz " book " ////
.
Ooh La La - The Faces
http://www.youtube.com/watch?v=769Oueux4nI&feature=related

Tue, 05/22/2012 - 20:28 | Link to Comment FinalCollapse
FinalCollapse's picture

Have they (Nasdaq) heard about the testing???

Tue, 05/22/2012 - 21:24 | Link to Comment blindman
blindman's picture

http://www.youtube.com/watch?v=LhjHBV20ZV4&feature=related
Ooh La La - The Faces (Without A Paddle Soundtrack)

Lyrics: r. lane

Poor old Granddad, I laughed at all his words
I thought he was a bitter man
he spoke of women's ways
he said they'll trap you then they use you
before you even know
for love is blind and you're far to kind
don't ever let it show

oh I wish that I knew what I know now
when I was younger
I wish that I knew what I know now
when I was stronger

the can-can such a pretty show
will steal your heart away
but backstage back on earth again
the dressing rooms are gray
they come on strong and it ain't too long
for they make you feel a man
but love is blind and you soon will find
you're just a boy again

chorus

when you want her lips, you get her cheek
makes you wonder where you are
if you want some more then she's fast asleep
leaves you twinkling with the stars
poor young grandson there's nothing I can say
you'll have to learn, just like me
and that's the hardest way

ooh la la
ooh la la, la la, yeah

I wish that I knew what I know now
when I was younger
I wish that I knew what I know now
when I was stronger
.
Ron Wood - Ooh La La - 2004
http://www.youtube.com/watch?v=k70d1Y-KaGA&feature=related

Tue, 05/22/2012 - 21:17 | Link to Comment geewhiz190
geewhiz190's picture

the IPO should be busted and all trades cancelled.  the money should be returned to the buyers.

Tue, 05/22/2012 - 22:42 | Link to Comment epwpixieq-1
epwpixieq-1's picture

"You do not understand American jokes." is what Edison told Tesla, when Tesla asked for the $50,000, Edison promised him for improving efficiency of the hopelessly inefficient DC generators.

I guess, the retail investors do not understand American jokes: "Take the money and RUN".

 

Tue, 05/22/2012 - 21:40 | Link to Comment blindman
blindman's picture

Confessions of a Tooth Fairy
http://www.youtube.com/watch?v=uOas5EKQ3IA

Tue, 05/22/2012 - 22:09 | Link to Comment robertocarlos
robertocarlos's picture

Never say you're sorry, unless you are in Canada.

Tue, 05/22/2012 - 22:38 | Link to Comment bugs_
bugs_'s picture

Why call Captain Hindsight when superior retrospect can be had from Princess Hindsight!

Wed, 05/23/2012 - 00:35 | Link to Comment JGambolputty
JGambolputty's picture

Face(book) it, anyone who gives their money over to a 28 year old kid so he can exercise complete control over a $100 bn enterprise deserves to lose it.   

Wed, 05/23/2012 - 05:36 | Link to Comment TrainWreck1
TrainWreck1's picture

Zuckerbag will work tirelessly to make this up to all who placed their trust in his company*

 

 

 

*comments in this post subject to retraction

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