Facebook founder and CEO Mark Zuckerberg speaks during a news conference at Facebook headquarters on October 6, 2010 in Palo Alto, California.
What exactly is the "Facebook Effect" and why could be both a boon and bane for California's budget crisis? According to the Legislative Analyst's Office, it's the massive amount of money that will be infused into California's sagging revenues when Facebook launches its anticipated IPO later this year.
Facebook isn't even going to sell that many shares to the public — it will probably continue a trend of "low float" IPOs in tech offerings, designed to elevate valuations (fewer shares equals higher demands equals higher prices). But it's still expected to raise $10 billion and achieve, overnight, a market valuation of $100 billion.
The capital gains from the creation of all those new Facebook millionaires will bring...well, billions to the state's coffers. As Bloomberg (via the San Francisco Chronicle) reports, Gov. Jerry Brown is estimating that 2012 will see $96 billion in total capital gains earned as income. The LAO figures rather less: $64 billion.
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I went on "The Patt Morrison Show" today, joining Heidi Shierholz of the Economic Policy Institute to discuss the good December 2011 jobs report from the Bureau of Labor Statistics. We spent some time talking about how to go about looking for a job, in industry where there's hiring happening — such as sales and technology.
Networking is essential. But you have a lot of networking options these days. You probably don't want to neglect any of them. Good old-fashioned "pressing the flesh," making sure you talk to friends and professional contacts, still makes sense. But taking advantage of social networking can also connect job-seekers with employers.
LinkedIn — the business-oriented social network that staged an IPO in 2011 — has become an extremely useful in this respect. It's optimized to present candidates to HR folks who like to see references, resumes, and take a gander at the kinds of connections that prospective employees have developed.