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Euro Pacific Capital’s Peter Schiff sounds off on government regulation and how it impacted Facebook’s IPO.
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Newsroom thank.
Peter Schiff is -- to say blame the government for what you're saying and FaceBook shares he's -- CEO -- Europe Pacific capital explained mr.
-- Well first of all the government finally gave people permission to -- FaceBook when the valuation was a 104 billion.
-- the reason companies like FaceBook can't go public earlier on.
-- -- is too expensive thanks to the government now all the opportunities belonged to the venture capitalists who have private equity guys.
They get on the ground floor the government has made it impossible for small investors to buy they're now the exit strategy -- hello everybody else catches -- group.
-- was only three years old when it went public in that tank tape.
Well because well they also bring public companies that have massive valuations that don't even need capital.
You see small companies that actually need capital to grow they can't afford to go public is only these monster -- second half sky high valuations.
That the investment banks can afford to take public.
But now it's just a casino and by the time the the small investor gets a shot there's far more downside risk than upside there are no.
A little bigger casino then the dot com bubble when you had companies with no earnings.
Going public.
And you had these massive stock -- just like the globe dot com did -- so what you're asking for.
Is what we've already -- the room which would then nightmare.
No we -- learned our lesson member I was a real time critic of Wall Street screwed over their customers by bringing those dot com public.
But we overreacted.
All the legislation that we wrote after the fact we closed -- the door after the horses have left the barn and now good companies can't get capital at an early stage because of what the government did not actually went over this I got a new book the real crashed just coming out today.
I've got a chapter on over regulation into financial sector how would backfires how the government tries to protect the small investor.
And now because of all the regulation the small investor is the one -- hole in the bat and a 1% get richer thing because the government won't let landed 99%.
Make good investment.
FaceBook could have gone public a lot earlier than it decided to cater you admit that well that would but it's not all about FaceBook but the reason they didn't wanna do that is because what they knew that Wall Street could manufactured -- big pop.
But you know at the end of the day it this stock really tanks Zuckerberg didn't really sell a lot of stock.
He sold enough stock just depends taxes Brian may be if -- -- -- all the smaller percentage of the public.
Of this company to the public get a better deal than what he got from those BC's.
And may be at he would end up with a lot more money he could -- that it could all be on paper all this wealth can vanish from -- -- -- cast that was a few hundred million.
But may be had -- gone public silver.
With less fanfare and he sold less of his company -- real investors at a better deal instead of the DC's a lot of the -- -- the IPO.
I'm not be it would have been better -- I personally am not of the reality of the capital markets and for the cost.
I'm I'm personally not -- to go back to the days of pets dot com where you had these skyrocketing I photos and everybody thought they're gonna get rich and then they didn't either get.
I know we have to -- Because you -- you don't throw the baby out with the bath water gets people acted stupid during the dot -- but you don't act even -- border with the regulations that we put on the capital markets in the wake of that.
Peter -- There's great talk indicator you take care because of the Wellcome accent of -- Pacific capital.
