Things are getting interesting. Last week, for instance, markets offered up both a rich comedy and tragedy above any story a Hollywood screenwriter could imagine. The comedy, of course, was the Facebook IPO flop. The tragedy, fittingly, was courtesy of the Greeks.
Yet the plot for both episodes was the same…it centered on market exploration. The comedy garnered plenty of laughs as markets’ explored the true value of Facebook shares. The tragedy received an abundance of tears while markets’ explored a Greek exit from the Eurozone.
Here at the Economic Prism we watched the shows with the hypnotized gaze of a child at the circus. We knew the juggling clown on the unicycle was headed for a crackup…yet we couldn’t stop watching.
Obviously, Facebook shares are not worth the $38 price tag they were initially offered to the public at. In fact, Mark Hulbert, at MarketWatch, crunched some numbers, and determined Facebook’s stock should trade for $13.80. That’s 63 percent less than the IPO price. Continue reading







