IPO's:
Insiders Public Offering
Insiders Phooling Outsiders
Wall Street is the poster child for semantic dishonesty. Among the verbal
lies are the following:
-
Capitalistic--No, it is decapitalistic.
-
Capital formation--No, it is capital deformation.
-
Free market--No, it an economic slave market.
-
Investors--No, crooks rigging the odds to always steal more money.
Even worse are the political action committees that are named after all kinds
of patriotic and moral soundbytes ... but that is another sad story.
An offspring of the poster child for semantic dishonesty is something called
"IPO's." To hear Wall Streeters liars and their mediac lapdogs explain it,
IPO means Initial Public Offering. However, if one follows the money,
one realizes that IPO really means Insiders Phooling Outsiders.
The misnamed investment bankers arrange to sell IPO stock to individuals
or pension
mismanagers
. Unlike China where
the money goes into production and jobs to employ the masses, Wall Street
IPO's put the money into pockets of the corporate insiders. None goes into
production. The buying outsiders are phooled into believing they are
participating in capitalism; however, no capitalizing of production results.
As a rule, the IPO cash goes into Wall Street M&M's, mansions and mistresses.
A sibling of this poster child offspring is the
bastard stock option where a corporate
insider gets lots and lots of stock which are sold to the stupid, naive or
igknowant public. Bastard stock options are form of
counterfeiting
, that is, offereing
something for circulation as a form of currency that has not value to it.
This writer's favorite infamous IPO darling is
Seagate
Drive which has been churned through the IPO wringer several times.
Many old line Main Street companies have been taken "private" bought and
saddled with debt to pay off the buyers before taking the privitized corporations
are re-publicized with Initial Public Offerings, aka, Insiders Phooling
Outsiders. In real estate, the buying-reselling without adding value is called
flipping.
Consider what was
said by
"Jerome Kohlberg, the first K of the famous leveraged-buyout firm KKR, concedes
that, 'Of course, what we were really doing, in my view, and I've thought
about this a lot, was taking earnings or value that should've gone to the
shareholders and bringing it unto ourselves.'" KKR is
the longest top-gun in using the privitizatizing and re-publicizing corporations.
What's good for the goose is good for the gander: In
2008,
KKR took itself public with an IPO. This is like a bank robber selling his
future jobs while keeping all of his past thefts.
Caveat Emptor: One can see forthcoming Insiders Phooling Outsiders
by watching ads on TV. When there is a sudden spate of ads for an unknown
company offering something to good to be true or an old-line company suddenly
being very visible, the advertising is to prime wage-earners and
pension mismanagers
to buy a media darling.
The money for the corporate insiders is not in the profits of the company
but in the selling stock to the public, stock that will be worth less in
the future.
-
An old line company (2010) being PR-prepped for flipping is Dunkin Donuts.
-
New concepts on the block for phooling are
-
Delta Dental (dental service promising better care at lower prices): On
061002@1650, the following TV ad was "Call your broker for information on
investing in Delta Dental." How is it that a non-profit can be selling stocks?
(note: Delta Dental has not had an official IPO as best this writer can
determine. However, TV ads like the above stimulate higher stock prices for
insiders who bleed their stock options into the market over months.)
-
Auto Repair and Legal Protection Insurance:
How can one add layers of bureaucracy and come up with a lower cost despite
the service-providers not lowering their prices?
For the phoolers, the money is in the options not the business. The
MBA business
model is to fake and rape the public. This is the general racketeering modus
operandi of Wall Street liars, e.g., rating funny paper high while selling
off their own funny paper as Goldman Sachs did repeatedly with all kinds
of funny paper. Anyone who buys stock in a decapitalistic rigged system not
only deserves to lose their money but deserves to be fined and punished for
being igknowant co-enablers of legal thieves. This is especially true of
pension mismanagers
.
Jack and Jills deserve desperation,
destituted and demise.
What do you call habitual flippers? Hedge funds. Where do you find them besides
on Wall Street? Taking vacations as presidential advisors or appointees in
the White House where they build up their rolodex contacts of "who you know
counts" before returning to the rape and murder of the American Middle-Class
on Wall Street.
Examples of Insiders Phooling Outsiders (also see examples in
Bastard Stock Options)
-
VISA,
credit card company [As you read the following, note that VISA is not in
financial trouble nor does it need the money since it is already profitable.
The public was suckered into giving savings/pension money to bankers in another
way besides high credit card interest rates! No money went into capitalizing
jobs in America.]
-
"Visa Inc burned its name into the record books for U.S. initial public offerings
on Tuesday, raising $17.9 billion as investors seized on its growth potential
and lack of direct exposure to the global credit crisis."
-
"Visa is using about $10.2 billion of proceeds to redeem shares held by its
largest shareholders"
-
I
P Os Dark Side*
-
"No longer did an IPO mean a company had cleared certain financial hurdles
and proved its mettle. Hundreds of new, untested companies with no indication
of profits for years to come were raising billions of dollars selling stock
to the public."
-
"Instead of letting individuals share in the wealth of IPOs, the process
may have just let them absorb most of the risk."
There is a
simple
solution--but first we must have the better democracy and capitalism
of the whole
plan.
Afterthoughts:
-
111007 There are laws against false advertisement, that is, claiming there
is value inside a product when the value is less or nothing than the claim.
Wall Street is guilty of false advertisement when it sells IPOs.
-
120521 IPOs do not raise money. They transfer money from wage-earners to
wage-takers.
Created by Linkstat.bas\Program
CMD:G: BBS
05-22-2015 @ 07:32:32
(Len=12k)
. Unlike China where
the money goes into production and jobs to employ the masses, Wall Street
IPO's put the money into pockets of the corporate insiders. None goes into
production. The buying outsiders are phooled into believing they are
participating in capitalism; however, no capitalizing of production results.
As a rule, the IPO cash goes into Wall Street M&M's, mansions and mistresses.
A sibling of this poster child offspring is the
bastard stock option where a corporate
insider gets lots and lots of stock which are sold to the stupid, naive or
igknowant public. Bastard stock options are form of
counterfeiting