RUSH  –  Facebook Falls Facedown, Regime Targets Morgan Stanley – The Facebook IPO. Ho-ho-ho-ho! Oh-ho-ho-ho-ho! Somebody’s gonna have to pay for this. These are Obama’s buddies at Facebook.  Well, because the bottom’s falling out. They can’t maintain the initial price, the 38 bucks.  Right.

Well, okay. So somebody’s gonna have to pay the price for this. Somebody’s gonna get the blame for this. You can’t have these people losing Obama money like this. That can’t happen. You can’t blame Goldman Sachs. They’re underwriters. They were in for $500 million at the outset, before the IPO.

You can’t blame Goldman Sachs because they’re Obama buddies. And you can’t blame JPMorgan Chase. They’re Obama buddies. But Morgan Stanley? A-ha! We have our target.
Morgan Stanley is soon, if not already, going to be under investigation by the SEC for not being truly forthcoming about changes Facebook made in its prospectus. See, Facebook made a profound admission. It’s another thing I told you last week. In fact, it might have been Monday. When you ask about Facebook, I said, “Of all the stuff that’s been said about Facebook…”
I’ll tell you, the poor Facebook people. I think they need to change the name of the company from Facebook to Facedown. It’s not pretty, folks. It really isn’t pretty. And I tell you, only 25% of the shares were made available to the public. The majority of shares were being bought by the institutions: The hedge funds and mutual funds, the repositories for pension funds and all this kind of thing. Oh! I’ll tell you the way the regime is looking at this.
They’re looking at this and they’re saying, “We gotta find a Wall Street bank to blame! It’s right there. It’s made-to-order for the campaign! We’ve gotta blame a Wall Street bank for this.” It’s gonna be Morgan Stanley. Even though JPMorgan and Goldman did the exact same thing that Morgan Stanley did (they revised their views on Facebook’s IPO the day before), it’s Morgan Stanley, which is not a Democrat-oriented firm, that’s gonna take the hit.
Is Facebook too big to fail?

Is it too big to succeed?
Who knows?
So what happened? Thursday of last week… I think it was Thursday of last week (it might have been Wednesday), Facebook changed their prospectus, and when they make a change to the prospectus, the public is supposed to be informed of it. And all the underwriters were told of the change to the prospectus. And the change to the prospectus was a very important change because the Facebook guys admitted that many of their users are now mobile users.
They’re accessing Facebook not from the Web (or not from their desktop computers or their laptops), but from their mobile devices such as their iPads or telephones. And then they said mobile advertising, Facebook mobile advertising, has not shown strong results. This should have resulted in a lower share price, and at least a warning to people that there was a problem here; that this was not golden IPO that everybody built it up to be. And not just this mobile advertising business.
I feel like a lone wolf on this ’cause everybody’s trying to, you know, blame a Wall Street bank and Morgan Stanley here for a number of things. But Facebook had a bigger problem than all that: When General Motors pulled their advertising saying it didn’t work. Folks, that’s all Facebook has. They’ve got 900 million users, but how do they generate revenue? They sell advertising! If General Motors pulls back and then publicly says, “Our advertising didn’t work, and that’s why we’re pulling our ads,” that’s the biggest red flag in the world, and it was out there for everybody to hear.  (read more, it gets better…. )