There’s a lot of hype surrounding the upcoming Facebook IPO.
I noticed an amusing fnord while listening to the radio news/propaganda. The announcer was saying “Buy shares in Facebook!” with the same tone of voice as “The Lotto jackpot is big! Buy a ticket!”
One of my coworkers at my first job was ripped off, via the PALM IPO. He bought shares the day of the IPO, after trading started. The price was $100/share. He placed a MARKET order and not a limit order. He bought for $150/share. In two days, he made a $20k donation to the bankster bonus pool.
I saw an amusing conspiracy theory regarding Facebook. Someone said “All of a sudden, the mainstream media started heavily hyping Facebook. That’s obviously a government psy-op.” What probably happened is “Facebook hired a PR firm.”
However, PR firm propaganda and State propaganda are the same. A corporation uses a PR firm and focus groups to market a new brand a cereal. A politician uses a PR firm and focus groups to try out his slogans. It is scientifically created propaganda. PR firms are a key component of State evil.
A lot of people make money promoting “hot IPOs” and the stock market. There isn’t much money to be made giving honest advice. Therefore, almost nobody in the mainstream media points out “Over the past 10-15 years, gold and silver were a better investment than almost every stock.” A lot of people will make money off the Facebook IPO. They’re all promoting it. The others “journalists” are lazy and following the hype, or obeying orders and saying what they’re supposed to say.
It is almost certain that Facebook shares will underperform gold over the next 5-10 years. I thought that people were idiots for buying Facebook shares at a valuation of $25B-$50B. If they cash out with an IPO valuation of $100B, then maybe they weren’t so stupid. They found a greater fool.
There are rules regarding “qualified investors” for pre-IPO corporations. That shuts out the average slave. By the time everyone is allowed to invest via an IPO, it’s usually too late.
With an IPO, that’s usually the end of the Ponzi chain. As an individual, you will probably get ripped off.
In a corruption-based economy, good hype is more important than a good product. With a large user base, Facebook automatically has great hype. Every Facebook user is a potential victim, ready to be fleeced via the IPO. Most people aren’t fooled. If only a tiny % are fooled, that’s a huge bankster booty.
If Facebook shares do spike after the IPO, there will be heavy naked short selling. That further rips off individuals.
Google’s share price was $585 yesterday. According to Yahoo Finance, Google closed at $100 on the first day of trading on August 19, 2004. That’s a gain of 485%. According to usagold, gold was at $406 on August 19, 2004, and was $1751 yesterday, a gain of 331%. However, that’s only an annualized difference of 4%. Even a ridiculously successful corporation like Google only outperformed gold by a little. (APPL did even better in the same period, but Apple has a longer track record. If you go back to 2000 or earlier, it’s less dramatic of a difference.) If you look at almost any other corporation with a 10 year history, gold was a better investment by a wide margin. (Also, there’s survivorship bias. There’s no comparison for Enron or Bear Stearns or Lehman or MF Global. With physical gold, you won’t suffer a 100% loss unless you are robbed literally, rather than robbed by financial tricks and fraud.) Gold has a lower volatility and higher return than the stock market. For example, for almost every recent 2-3 year period, the FRN-denominated value of a gold investment would have at least broken even.
Don’t buy the FaceBook IPO. Don’t invest in the stock market. Buy gold or silver or platinum and take physical delivery. Hide it someplace safe.
I found the radio “news” hilarious. The reporter was talking about the Facebook IPO in the same tone of voice as the Lottery. I’m noticing lots of evil fnords now that I didn’t see before.