Facebook’s stock prices have dropped a huge percentage from the initial offering price. Some believed prices would quickly rise and exceed $ 50 per share. Currently, prices sit at $ 31 per share — an 18 percent decrease from the initial offering price. Several news outlets are reporting that an SEC investigation could emerge surrounding Morgan Stanley’s handling of the May 17 IPO. Morgan Stanley cut revenue forecasts for Facebook in the days before the offering, “information that was not disclosed to the market before the stock was listed,” according to Reuters. I do not know much about how the stock market works, but apparently this is frowned upon, to say the least. If you would like to read more about the situation check out the links below. Newsweek/ The Daily Beast New York Times Reuters Bloomberg Businessweek
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Facebook’s stock prices have dropped a huge percentage from the initial offering price.

Some believed prices would quickly rise and exceed $ 50 per share. Currently, prices sit at $ 31 per share — an 18 percent decrease from the initial offering price. Several news outlets are reporting that an SEC investigation could emerge surrounding Morgan Stanley’s handling of the May 17 IPO.

Morgan Stanley cut revenue forecasts for Facebook in the days before the offering, “information that was not disclosed to the market before the stock was listed,” according to Reuters. I do not know much about how the stock market works, but apparently this is frowned upon, to say the least.

If you would like to read more about the situation check out the links below.

Newsweek/ The Daily Beast

New York Times

Reuters

Bloomberg Businessweek

We Can Always Print Money to Do That

“The United States can pay any debt it has because we can always print money to do that. So there is zero probability of default.” — Alan Greenspan, August 7, 2011

Is Mr Greenspan the greatest troll alive?  Following this quote, we can only hope that’s the case.

It’s certainly true that we could just print more and more and MORE money to pay offthe government’s $14 trillion+ debt.  Actually, we wouldn’t even need to physically print anything — we’d just add a few zeros to some balance sheets here and there and then set up a some wire transfers to our various lenders.  Voila!  Problem solved.  Remind me again why we had that whole debate last week?

The difficulty here — and presumably the reason why we haven’t taken advantage of this ostensibly simple solution already — is that this would cause massiveovernight inflation, probably collapse the dollar, and generally wreak havoc on the world’s economy.

See, whenever you just print huge quantities of money based on nothing, this results in devaluation, or inflation, of the unit of currency. The effect of the very policy Mr. Greenspan recommends may be clearly seen in the history of our money’s value over the course of the last 100 years of the Federal Reserve’s print-happy ways.  The dollar’s worth has declined to less than five cents of what it was at the beginning of the 20th Century.

Basically:  making more money out of thin air = less value per piece of money.

Read this post in it’s entirety on Bonnie Kristian’s website