I think your last sentence is correct. Not the rest. A lot of the cash spent was by the underwriters themselves, in fact most of it. FB did suck the wind out of social media stocks (i.e., the trading halts on ZNGA), the rest of the market was more a function of Europe, but yes some disappointment the FB offering did not go better as well. It went really well for Mark and the other FB employees. Everybody else is nervously awaiting Monday. How much more cash will the underwrites have to put up? How much more cash will they be willing to put up? If the market is up, they will be okay and can gradually feed FB stock into the market. If G-8 disappoints this weekend, or something develops in Greece or Spain that is unexpected, all bets are off. I mean all bets are off.
It was just crazy to do the offering on a Friday before the weekend w/everything going on in Europe, a G-8 meeting, the market having been down 11 out of the last 12 sessions, and money being withdrawn from banks in Greece and Spain. All of that was known. It was not a mystery. They also knew there would be flippers as there always are, they were counting on the Oversubscription stats. They found out that can change in a minute, faster than a flash crash. Silly to take the chance and do it on a Friday.