We see that the Facebook (FB) initial public offering (IPO) raised $16 billion. At its debut price of $38, something like 420 million shares must've been placed in the investing public’s hands. Down at 31, a recent market quote, the public’s loss on those shares totalled $2.9 billion.
Underwriters routinely issue an additional 15% of IPO shares for themselves. With FB, this is close to 63 million shares. When the IPO stock drops, underwriters, who, of course, sold their FB allotment to us at $38 as well, simply wait and buy their position out at lower prices.
If this smells familiar to our loyal readers, it should. The underwriters are SHORT, ergo raking in a bundle from our misfortune. Again. Their 63 million share FB short position would’ve generated a sweet trading profit of something near $450 billion at that recent quote, a financial killing for racketeering short-sellers, a.k.a. ”investment bankers” - if the mob held on and rode the entire position down.
And that’s near $450 billion and counting should the Crime Families still be riding.
Part of how the 1% get so rich throwing the rest of the country into ruin, an observation which should also come as no surprise to regular readers of these cyberspacial pages.