Tuesday, May 22, 2012

Facebook IPO + 3 and the lawsuits are flying

Before the third day of Facebook trading had ended at least two law-suits had been filed over the initial launch.

There's a guy in Maryland wanting to take NASDAQ to the cleaners because of the tech malfunctions in their order processing system.

Then there's a guy in California who has a quibble with the underwriters for flogging him abject crap as the next greatest thing.

Not that Facebook is abject crap.

At ten bucks a share it's a speculative buy.

Closed at $31 today so sell short if you can and sit tight if you can't.

But both those guys want class action status for their suits, and when they get it armies of suits will be milking these class actions for everything they're worth for years to come.

That thriving economic sector "the legal business" is one symptom of how America went off the rails back in the '70's and '80's.

America was educating ten lawyers for every engineer.

Japan and China and India were graduating ten engineers for every lawyer.

So a generation later we have a situation where Japan and China and India can design stuff and build it and have thriving export markets, and America can dazzle the world with how quickly a class action law-suit can get off the ground.

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