Anyone spending anytime on the internet these last couple of weeks would have come across some article exclaiming Facebook was going to shatter all IPO records known to man. Buying shares would make you an instant millionaire or billionaire in the case of the FB management team. The steady drumbeat message was buy, Buy, BUY!!!

Well, if you were foolish enough to buy into the sales pitch, you awoke Monday morning to a lot less change in your pocket. You see, Wall Street in its totality is a voracious predator with an even more voracious appetite.  It’s insatiable appetite feeds off of your hard earned money, which is precisely what it showed the world with its  farcical FaceBook IPO offering Friday afternoon.

Sadly, too many young people, especially FB users likely gave the Wall Street vultures exactly what they wanted…new blood aka hard earned cash.

Michael Rivero argues:

There is no way that major Wall Street players ever saw the Facebook IPO as a long term investment. We are in all probability looking at a get-rich-quick “pump and dump”, but there may well have been an additional agenda at work.

We know the main players manipulkate the markets. The almost $12 billion poured into the Faceook IPO late Friday to prevent the price from going into the red represents one form of obvious manipulation. And there are many others, including the use of high-speed computer trading systems

However, because of the many years that the PPT has manipulated the stock market with their high-speed computer trading systems, savvy small investors have left trading, which means the actual flow of cash into the market has dried up. The PPT games shuffle what money exists around and around in circles trying to run up some impressive looking numbers, but the volume and the value is simply no longer there.

So, part of the reason for the major push for Facebook may have been to lure young investors into the market with the Facebook “brand”, rubes too dumb and inexperienced to know they were lambs to the financial slaughter, to form the new lowest level of the Wall Street pyramid scheme.

The value of such a re-invigoration easily explains why the major Wall Street firms turned a blind eye to Facebook’s inability to pay dividends on the IPO, and why Morgan Stanley, JPMorgan Chase and Goldman Sachs gambled nearly $12 billion late Friday to prop the price up.

If I am correct, and the Facebook IPO was intended to bait new investors into the stock market as a whole, then any major drop in Facebook value Monday will trigger a general market panic. [emphasis added]

Read more about this farce at http://www.washingtonsblog.com/2012/05/farcebook.html