Insiders Public Offering
Insiders Phooling Outsiders

Wall Street is the poster child for semantic dishonesty. Among the verbal lies are the following:

  1. Capitalistic--No, it is decapitalistic.
  2. Capital formation--No, it is capital deformation.
  3. Free market--No, it an economic slave market.
  4. 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.

  1. An old line company (2010) being PR-prepped for flipping is Dunkin Donuts.
  2. New concepts on the block for phooling are
    1. 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.)
    2. 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)

  1. 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.]
    1. "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."
    2. "Visa is using about $10.2 billion of proceeds to redeem shares held by its largest shareholders"
  2. I P Os Dark Side*
    1. "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."
    2. "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.


  1. 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.
  2. 120521 IPOs do not raise money. They transfer money from wage-earners to wage-takers.

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