Facebook IPO: God Help Us All

NEW YORK (TheStreet) -- Welcome to the castle: The Facebook (FB) IPO has now embodied all the worst that Wall Street represents and the massive irony is that it has done it with the vanguard application of the "one percenters" and "Occupy Wall Street" crowd -- the social network app that supported the Arab Spring and Chinese dissidents.

But even more, we are now all tied to this public offering, and perhaps the confidence in our recovery and the health of our economy might actually stand in the balance of it's success. That's how much hype the Facebook deal has been endowed with, and how much our system of capital allotment has invested in this one company. If this deal fails, I predict we're in for a far greater fall this summer in our markets.

Call me a Luddite, but even 900-million strong get-togethers and "blogging about Bieber" doesn't inspire my instincts in the promise of capitalism. Today, the Facebook IPO was given a pre-market valuation of $104 billion -- only slightly more than Total ( TOT) and a bit less than BP ( BP).

What do I want in a rapidly growing world? A network of unpaid subscribers without a monetization plan, or a company that provides the energy for all human progress?

Still, the avalanche of media attention has made this morning's IPO the most important financial story of the year thus far. While most of the analysts and pundits have been relatively cautious about the opportunity for retail investors, it hasn't stopped the explosion of interest. Every greenshoe -- including from Imelda Marcos's closet -- has been tapped to increase the float from sellers and deliver the maximum cash to angel investors and 20-something founders.

Goldman Sachs ( GS) will reap a fortune and perhaps make their year on this one. Pricing came out at $38, well above range even with the increased float, allotments were larger than expected inside the syndicate and it seems unlikely that even those inside syndicate players will benefit much.

$105 billion of precious capital is going to go into the pockets of VC firms, investment banks and insiders who will not recycle that cash back into the capital markets -- they will more than likely buy a second, (or a third) house, a $100 million yacht and a majority stake in a sports team.

And God help us all if this deal fails. The market will recoil from a true tech stock disaster, the likes of which we haven't seen since 1999, especially since we're in such a vulnerable spot from the latest European debt issues and Greek, Spanish and Italian yield spikes.

So, pray that the market and the market makers haven't overreached themselves on this one. More than the net worth of Mark Zuckerberg is riding on it.

The author owns shares in FB IPO.

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