Fedsury’s Dead Money Policy = CrawlStreet

Dear Contra_Folk,

As we await the seemingly never to see the light of day issue of FaceCrook (this May apparently, we say July… if ever this year), so we now have plenty of time to discuss how a non-listed organization can fuel the rise in the 1%’s global stock markets – and how the doubling of a hologram for a private company’s capitalization to the tune of an overnight $500,000,000.00 in real monetary profit, is now just the thing for you and your closely connected stakeholder friends in the 1%.

Just by being issuing more paper overnight – but with no inflation – sound familiar, and seemingly raising P/E’s effortlessly all over the globe along with a loaf of bread, including now both private and public companies, and all at the same time.  Somebody Stop Us.  But Naa… at Contra_Man Fund, we say.. If its never been done before.., then it’s probably about to be undone:

“The winners:

The biggest winners of the FaceCrook deal are, of course, the people directly involved with Instascam.  Founder and chief executive Kevin Systrom has reportedly netted $400m; his co-founder Mike Krieger is about $100m richer – all for just under two years’ worth of work.

Reports suggest that $100m will be shared out among the other 11 members of staff, some of whom joined the company just a few weeks ago. And then there are the investors, a roll call of Silicon Valley greats (including Facecrook’s first chief technical officer). Kudos, by the way, to the three venture capital firms that reportedly invested $50m in Instascam, valuing the company at just $500m. In less than a week they’ve doubled their money.” BBC

Hurry Up and Wait (for a New Listing … or a Correction?)

Is the FaceCrook forever IPO the longest road show in modern financial history and should it really be that hard, and take that long, to sell a hot minority issue out the door? From the original six Banksters to now something north of 40 member Banksters/pumping syndicating issuers for this best efforts basis deal. Ongoing roadshow now at five months plus a few from last years’ hype … just like the present bull market QE run nes pas?  How much are they beating and raising, you don’t say?  A sextillion dollars offered for 5% of Company’s outstanding float… making the other 95% worth triple that! 🙂

Funny, they used to sell 80% of an IPO float for the same hundreds of millions, it was called “going public”, but now the trick is to only sell 5%..not 80%.   Better yet even, is to be lucky to control 2/3 of the Board with a third super class share capital structure.  This is to allow modern financial terrorists to then perform operation Bankster Extrapolation, not to improve quality earnings or mercantile profits,  but simply use mathematical models to compound ones “still private” super share net worth from the remaining “unlisted” authorized Class-B (no hear, no see, no say) public float, and best yet, all at the expense of the public markets majority & moronic institutional shareholders who allow this style of corporate governance (greed) to proceed with OPM (other people’s money) by funding the stinky bids for these public entities.  Say BYE BYE Pension Surplus… and say hello to the Public/Private Hybrid super class structure.

Budgie Goes Mysteriously Silent : “Peep, Peep, Pe..”

Just when the Boomers start withdrawing capital (not just interest income or dividends) from the Public Markets, but encroaching upon their capital formation asset base to make up for the deficient and lack of absolute real return yields given by, and therefore allowed, by the Fedsury Banksters, and definitely not as per their personal financial plan’s long invalid return assumptions.

How this has morphed into a hybrid – for a hybrid is a soon favourite “confuse & abuse theme” for the decade ahead in Finance – is easy to see with this new “private/public paper” issued as co-mingled, fungible, and somehow ‘approved for trading’ and allowed for specified and authorized market participants market making is really not much of a mystery.   Through relaxed and changed rules of law, SRO (self regulatory organizations) have gamed regulators (offshore and onshore like Bart & Co. in Chicago) having made real progress towards the absolute benefit the Banksters (avoiding Frank’s Dog’s Breakfast) and also encouraging other Banksters (European) and the Fedsury of the Day to promote ever more non-registered private-public paper to float around the globe.

This, at a time when Class B non-voting and restricted non-voting share issues are basically banned from existence for their poor governance association with irreplaceable Managers who placed themselves permanently upon their own pedestals.   Things seem cleaned and sterilized on CrawlStreet but if you google dual class structure…

The way you Talk; and Walk, Really makes Me Nervous

Wasn’t not way back Jan 2nd and the flashing tag crossed that a Lottery deal was finally announced for the Mother of All IPO’s –  with guest after guest reading the morning teleprompter with lead underwriters all glowing with much fan fair?  A new, much needed fresh start for Whawlstreet?   What about the billion dollar private company shares purchased with “just about to be public” sharepaper all during those so-called “hush” periods for listing corporations?  What material change clause? Whispers about the private capital funding bill introduced into Legislation and passed with a signature early this week should tell us something about the future.

WallStreet was so then what CrawlStreet is Today

Underground boiler room operations with 2,000 shareholder operations or less (but not widely held) no, no, just held by mom and pops looking to seek revenge on Wallstreet by chosing to go around and use CrawlStreet under-regulated and papered-up insiders instead.  Private members entrance only into Hotel California.

Crawlstreet – Underground Non-Bank Financier of the 1%

^ That’s what they cannot hide even with fudged birth/death models and other gaming of statistics.

 

Take a look at the long term employment participation rate (1950-2010):

Or by Age Demographic:

Consumerism (& 67% of GDP) Just Rolled Over,

Contra_Man

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About ContraManFund

Fictional (maybe not if you are an accredited investor) trading of a long/short contrarian-driven investment model portfolio based upon current economic environments and counter-intuitive trends. Legal Disclaimer The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions. NO MATERIAL HERE CONSTITUTES "INVESTMENT ADVICE" NOR IS IT A RECOMMENDATION TO BUY OR SELL ANY FINANCIAL INSTRUMENT, INCLUDING BUT NOT LIMITED TO STOCKS, OPTIONS, BONDS OR FUTURES. The author may have a position in any company or security mentioned herein. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility. Please consult your own investment advisor before making any investments anywhere, and always do your own due diligence before undertaking any individual investment.
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