Regulators to scrutinize Facebook's bumpy debut

by Letters Editor

Facebook IPO was overhyped

Editor, The Times:

That Facebook’s IPO was overhyped and that its stock was overvalued was so palpably obvious to me that I could almost smell it. And if I felt that way, then you can’t tell me that those who are the real experts didn’t know what was up all along.

“There was no there, there,” to apply a famous quote. The number of people who will buy into this kind of hype is what is more appalling, given how many were ripped off in such similar ways by the real-estate bubble. It isn’t necessary for “one to be born every minute” when there seem to be enough reborn to take the bait.

— Thomas Munyon, Marysville

Facebook stocks more valuable than oil

The media can report what they want but the truth lies in the results of those who take the chance on Wall Street. Don’t make the Facebook IPO situation any more than it really is or you will look like fools. [“Facebook sees stock slip below IPO price,” Business, May 22.]

In the business of playing the stock market, there are the risks of loss as well as the hopes of gains. It’s a gamble. The scrutinizing by regulators on Facebook stock should have been done before the stock sales and not after the result of sales.

If I were to guess as to a long-term future for the new Facebook IPO, it would be good. In fact, I would buy Facebook and sell oil stocks. Oil stocks have vacillated so much it is worthless. The high gasoline price at the pump is hurting its stock value. In the U.S. and world industries, the efficiency of using less oil is starting to be realized.

Facebook, on the other hand, is a tech stock with social makeup and it is what the world market and the U.S. is about.

Advice: Invest only in stocks that provide dividends.

— Jim Morris, Renton

Shortage of investment opportunities

I watched the trading in stock as Facebook had its IPO. If one connects this event to the loss of $2 billion by Chase a week or so ago, Chase made $5 billion in the first quarter of 2012. It appears to me that there is enough money for investment.

I have not noticed any shortage of money to invest. Rather, I think there is a shortage of good opportunity to invest because there are shortages of enough customers.

The Republican Party refuses to even consider raising taxes on the rich, to help for example to balance the national budget, because it says that raising taxes on the wealthy takes money from investment. Well, where is the shortage of investment funds?

If there is no shortage of investment funds, why fear raising taxes? Or is this another case where belief is more important than evidence, than the facts?

— Dean Shoemaker, Kent

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