The IPO mishaps have sparked numerous lawsuits against Morgan Stanley, the Nasdaq stock exchange and Facebook itself by shareholders who claimed they hid the social networking company's weakened growth forecasts just before it went public. The allegations raised questions about whether top investors profited at the expense of smaller buyers.

Meanwhile, Facebook is in talks with the New York Stock Exchange to move its stock from the Nasdaq Stock Market after the botched IPO on Friday, according to a person familiar with the matter. The person spoke on the condition of anonymity because they were not authorized to speak publicly. Facebook's much-anticipated IPO was delayed by a half-hour on Friday because of technical glitches on the Nasdaq. After pricing at $38, Facebook's stock closed up 23 cents on Friday and has been down since. On Wednesday, it closed up $1, at $32, still down nearly 16 per cent from the IPO price.

NYSE declined to comment. A Nasdaq spokesman did not immediately return a call for comment. The news comes as even Facebook CEO Mark Zuckerberg dumped his own shares in the company, making $1.13 billion as the stock nosedived, according to company filings. The House Financial Services Committee said that it was also gathering information for their own review. Facebook stock rose 3.3 percent in trading on Wednesday, rising to $32 a share.

However, a new analysis said the stock could fall to as low as $9.59. That's a far cry from the $37.58 that Zuckerberg fetched for 30.2 million shares he unloaded on Friday. By the end of trading on Tuesday however the price had dropped to $31 meaning Zuckerberg saved himself a cool $174 million by getting out early.

Europe was facing the prospect of a devastating financial crisis last night, as Greece teetered on the brink of a chaotic exit from the single currency. Stock markets across Europe plunged after the mighty Bundesbank warned that it would be better to let Greece leave the euro than give its crippled economy any more cash. At an emergency summit in Brussels last night, David Cameron pleaded with dithering European leaders to end the ‘fudge’ over the euro crisis.

The Prime Minister told an emergency summit of EU leaders in Brussels there was no point discussing plans to kickstart economic growth unless they acted ‘decisively’ to shore up the ailing single currency. In a separate blow it emerged that all eurozone countries have been ordered to draw up contingency plans for a Greek exit. The Bundesbank warnings sparked panic on stock markets, with £35 billion wiped off the FTSE 100. Italy’s stock market fell 3.7 per cent, while Spain’s dropped 3.2 per cent.

The euro also fell to a two-year low against the dollar. Behind closed doors in Brussels, Mr Cameron warned fellow EU leaders that ‘contagion’ from a Greek exit could destabilise the European economy for years. ‘We need a plan to deal with contagion,’ he said. But Mr Cameron’s words appeared to have gone unheeded last night as German Chancellor Angela Merkel hinted that Germany was preparing to cut Greece loose unless it agrees to stick to the tough terms of last year’s bailout deal.

Earlier in the evening Mrs Merkel rejected calls for the introduction of so-called Eurobonds to ease the debt crisis. The German Chancellor said the idea, which would effectively see Germany underwrite the eurozone’s vast debts, was illegal under EU law and was ‘not a contribution to stimulating growth’. Her stance is a major blow to France’s new socialist President Francois Hollande who had insisted that Eurobonds were on the agenda of last night’s summit.

Mr Rajoy joined French President Francois Hollande in stressing their commitment to keeping Greece in the euro despite its political uncertainty. Speaking in Paris alongside Mr Hollande, Mr Rajoy said: ‘Europe has to come up with an answer. It is a must, because we cannot go on like this for a long time, with large differences when it comes to financing ourselves. It is because of these differences that the policies that we Europeans believe in, such as controlling government spending and reforms to encourage growth, ultimately have no effect.’

‘So I am going to talk about liquidity, financing and debt sustainability. For me it is the most important thing today,’ he said.

Mr Rajoy suggested the European Central Bank resume some of its emergency measures, such as buying the bonds of weak countries, which has the impact of lowering countries’ borrowing rates. Spain, which is in recession and has an unemployment rate of nearly 25 per cent, is seeking to shore up its banking sector against market fears about the country’s financial health.

Its economy minister Luis de Guindos said the government will pump at least £7.2 billion of public money into nationalised lender Bankia. Many Spanish lenders are heavily exposed to Spain’s burst real estate bubble. Bankia is the worst off of all, with £26 billion in toxic assets.

The air was stuffy in the French press room of the European Council building, which was crowded with journalists. Everyone wanted to see the new French president during his first press conference after a European Union summit. Shortly after 1 o'clock on Thursday morning, François Hollande held court just as his predecessor, Nicolas Sarkozy, once had, explaining his "vision for growth" for nearly an hour.

In the room next door was German Chancellor Angela Merkel. In front of her were just a few rows of chairs and some cameras, and the room was half empty. She had decided not to hold a full press conference. Instead, she gave a brief statement, answered two questions and left after five minutes. She apparently knew that she didn't have much of a chance against the appeal of her new French counterpart. It almost seemed as if she was happy to concede the stage to Hollande without a fight.

The parallel appearances in Brussels in the early hours of Thursday had symbolic value. It was the first EU summit in years which was not dominated by Merkel. Instead, Hollande set the tone at the informal dinner attended by the leaders of the 27 EU member states, even if he only spoke briefly himself and showed surprise at the lengthy comments of some of his colleagues.

But with his demand for euro bonds, he set the main topic of discussion at the dinner. Hollande has deliberately put the controversial proposal for jointly issued bonds at the center of his growth agenda. His aim is to challenge the German chancellor. His unspoken message at the summit was that Merkozy, and the symbiotic relationship between Merkel and Sarkozy, was history. In the future, France will assert itself again.

In a blunt warning to Athens, the Bundesbank said a Greek withdrawal from the eurozone would be disruptive but "manageable", undermining claims by Greece's radical anti-austerity leader, Alexis Tsipras, that Europe would not dare pull the plug. "When the Eurosystem provided Greece with large amounts of liquidity, it trusted that the programmes would be implemented and thereby ultimately assumed considerable risks," said the bank. "In the light of the current situation, it should not significantly increase these risks."

The German financial daily Handelsblatt said the Bundesbank was "holding a gun to Greece's head", hammering home the message that Germany will not submit to blackmail from populist politicians in Athens. Berlin also leaked news that their member on the European Central Bank board, Jürg Asmussen, is to head an ECB taskforce to handle the Greek crisis. There was confusion in Brussels over leaks that EMU finance ministry officials had agreed in a meeting on Monday – allegedly in the name of Eurogroup executives – that each state should draw up a national plan to cope with a Greek exit.

The summit was a polite showdown between Germany and an emerging "Latin Bloc" led by France, Italy and Spain, determined to force a change in the Europe's strategic direction. The Latin coalition wants eurobonds to kickstart growth and mutualise debts, anathema to Germany, as well as EMU-wide deposit guarantees and an activist ECB. Chancellor Angela Merkel has ruled out eurobonds, although there could still be room for project bonds or short-term "euro-bills".

Spanish leader Mariano Rajoy warned that spiralling borrowing costs were pushing his country towards the brink. "Europe has to come up with an answer because we can't go on like this for long," he said. David Riley, Fitch's managing-director, said it would downgrade all eurozone states if Greece left. Europe's policymakers would have to conjure a new regime for Euroland, and a quantum leap to fiscal union to restore credibility. "They couldn't simply shrug it off," he said.

US financial regulators have already said Morgan Stanley may have questions to answer over the disclosure of information ahead of Friday's float. The lead underwriter to Facebook said it had fully complied with the rules. The lawsuit claims that defendants concealed from investors during the flotation marketing process "a severe and pronounced reduction" in revenue growth forecasts.

Meanwhile, the Reuters and AP news agencies reported that the Senate banking committee may look into the matter, but was still considering its options. These latest developments continue to cast a cloud over one of the most anticipated stock market listings of recent times. The flotation was disrupted on Friday by technical glitches on the Nasdaq stock exchange. The share price has since slumped amid worries that the company was over-valued by advisers marketing the float.

On Tuesday, the leading financial regulator in Massachusetts issued a subpoena to Morgan Stanley as part of an investigation into whether its analysts selectively disclosed revised revenue forecasts for Facebook. Meanwhile, there was some good news for the Facebook share price, which closed up 3.2% at $32-a-share. The shares listed at $38-a-share, and fell as low as $31 on Tuesday.

That decision was put in stark terms Tuesday by the Congressional Budget Office, which in a new analysis said the economy will plunge into a recession early next year if Congress lets taxes rise and spending be cut, as called for under the law. But if Congress changes the law to keep taxes low and spending high, it could add more than half a trillion dollars to the deficit in 2013, marking a fifth straight year of trillion-dollar deficits and risking the patience of the country’s creditors.

The CBO numbers come just as the debate is heating up on Capitol Hill over how to handle the looming “fiscal cliff,” which Congress created by continually pushing off tough decisions on both taxes and spending. Senate Majority Leader Harry Reid, Nevada Democrat, signaled Tuesday that he will allow the automatic spending cuts called for in last year’s debt deal to go into effect — culling billions of dollars from defense and domestic spending — unless Republicans agree to allow taxes to increase for at least some taxpayers.

The German austerity dictate, pushing Greece into destitution, is provoking growing popular resistance, which, apparently, can no longer be suppressed with democratic means. Berlin has failed in its efforts to force Athens into subordination by threatening to withdraw the Euro, as much as with its demand that Greece combines its parliamentary elections with a referendum on the question of remaining in the Euro zone.

Berlin categorically rejects the option of retracting the austerity dictate and replacing it with stimulus programs, as is being demanded by leading economists world wide, even though the exclusion of Greece from the Euro zone threatens to push the currency, itself, into an abyss. The sectors of the German elite, which refuse to consider this change of course proposed by Krugman and numerous other experts outside Germany, are now PUBLICLY DEBATING SCENARIOS INVOLVING THE USE OF FORCE. In a newspaper interview early this month, the director of the prominent Hamburg Institute of International Economics, Thomas Straubhaar, called for establishing a protectorate in Greece - "regardless of the outcome of the elections."

The country is a "failed state," he says, which is unable to raise itself "to a new start" under "its own steam." Athens needs "help in establishing viable state structures." IT, THEREFORE, MUST BE TRANSFORMED INTO "A EUROPEAN PROTECTORATE." "The EU must do it," affirms Straubhaar. The EU "would have to help Greece modernize its institutions at every level, particularly with administrative staff, tax experts, and tax inspectors." However, refounding Greece would demand "intuition" to "overcome national pride, conceit, and the resistance of interest groups." This is referring to a sovereign democracy, a German ally in the EU and NATO.

In the meantime, there is even discussion of a putsch in Athens. Greece threatens to sink into complete chaos, warned a long time companion of Germany's former Foreign Minister, Joseph Fischer, Daniel Cohn-Bendit, a European parliamentarian for the French Green Party. Cohn-Bendit explained that it is impossible to avoid extensive foreign interference. "If you leave the Greeks to muddle through alone, you are risking a military putsch."

The meeting comes after the Organization for Economic Cooperation and Development today warned that the 17 countries that use the euro risk falling into a "severe recession." It called on governments and Europe's central bank to act quickly to keep the slowdown from dragging down the global economy. The electoral turmoil in Greece threatens to pull apart the eurozone and Prime Minister David Cameron has warned Europe's nation states to prepare for any possible Greek exit.

Borrowing costs are up for the most indebted governments and there is an increasing number of reports of worried savers and investors pulling funds out of banks that are seen as weak. Just last week, Spanish bank Bankia had to reassure its customers after £1 billion was taken out of its vaults by savers. Meanwhile, unemployment is soaring as recession grips nearly half the eurozone countries.

Switching the conversation from slashing budgets to promoting growth won't be easy as Angela Merkel has continuously pushed to restrain governments. Head of the IMF Christine Lagarde warned today that the only way to protect against a failing debt crisis was to promote fiscal easing. She said: "If the economy turns out to be significantly weaker than forecast, fiscal easing should be considered. Measures should be focused on supporting growth and employment."

Thilo Sarrazin, the former board member of Germany's central bank who caused outrage two years ago with a bestseller criticizing the impact of Muslim immigrants on German society, presented a new book on Tuesday that could strike a similar chord with Germans: "Europe Doesn't Need the Euro."

In his latest work, the combative politician, a maverick member of the opposition center-left Social Democratic Party, controversially argues that Germany is being pressured to bail out the euro zone because it perpetrated the Holocaust. Sarrazin writes that supporters of euro bonds in Germany "are driven by that very German reflex, that we can only finally atone for the Holocaust and World War II when we have put all our interests and money into European hands," according to excerpts published in German media ahead of the book launch.

Carsten Schneider, a budget policy spokesman for the SPD, said: "Sarrazin is once again trying out the usual provocation. His criticism of the euro is nationalist and reactionary." Volker Kauder, the parliamentary group leader of Chancellor Angela Merkel's Christian Democrats, said: "Sarrazin is wrong again. THE EURO IS A SUCCESS STORY AND WILL REMAIN SO."

Nevertheless, many of Sarrazin's arguments are widely accepted. He says it was a mistake to launch the currency before Europe had a common fiscal policy, and that it was wrong to let countries like Greece join because their economies weren't ready. He concludes that Europe can only get out of its mess if it rapidly moves towards political union, which he opposes, or that the union should be transformed into a looser formation that allows troubled member states to quit so that they can regain competitiveness through currency devaluation.

Setting aside the hype and the cultural phenomenon that is the online networking site, Facebook Inc would be fairly priced at $9.59, according to the smattering of Wall Street estimates analyzed and modeled by Thomson Reuters StarMine.

Data from six brokerages modeled by StarMine forecast the company's estimated annualized earnings growth over the next 10 years at 10.8 percent. That's almost exactly the mean for the technology sector and far below the 24 percent growth rate implied by the current stock price.

Investor confidence in the shares has been damaged after Reuters reported lead underwriter Morgan Stanley cut its revenue forecasts for Facebook in the days before the offering, in part because of comments from Facebook on mobile usage. After pricing at $38, far more than the first estimate of $28 the company gave investors, shares have been sliding - at one point as much as 31 percent from the $45 peak hit shortly after it started trading Friday.

The number of IPOs has dropped from 311 annually before 2000 to 99 the past decade. Meanwhile, the smart CEOs and the Super Rich are “going private,” to avoid government red tape restricting capitalism. Over at BusinessWeek they’re warning investors that the growing number of “cutesy mascots” is a dangerous reminder “of the dot-com boom’s irrational exuberance.” They’re also red flagging new reports that “more Chinese investors are betting on US start-ups.” And feeding the flames.

What’s going on? Facebook’s in trouble, that’s what. Now in the crosshairs of public scrutiny, everybody’s taking potshots. And the warnings are just beginning:

Everything from Facebook being “too big to fail or succeed” to a Chicago attorney warning that the stock could “crater” if Facebook can’t grow revenues 41% annually for five years to “sustain its value” to a warning that FACEBOOK’S ONE OF THE “BLACK SWANS” THAT COULD EVENTUALLY BRING DOWN THE GLOBAL ECONOMY.

More than 70% of an estimated one million suspect parts were traced back to China, the report said. It blamed weaknesses in the US supply chain, and China's failure to curb the counterfeit market. The failure of a key part could pose safety and national security risks and lead to higher costs for the Pentagon, the committee said.

US servicemen rely on a variety of "small, incredibly sophisticated electronic components" found in night vision systems, radios and GPS devices and the failure of a single part could put a soldier at risk, the report said. It highlighted suspect counterfeit parts in SH-60B helicopters used by the Navy, in C-130J and C-27J cargo planes and in the Navy's P-8A Poseidon plane. After China, the UK and Canada were found to be the next-largest source countries for fake parts.

Whether the federal government spends money wisely or foolishly, the truth is that the vast majority of it still ends up in the pockets of the American people who then use it to buy the things they need for their daily lives. If the US government had not borrowed and spent an extra five trillion dollars that we did not have over the past several years, we would be in the middle of a rip-roaring economic depression right now.

So any talk that [Mr] Barack Obama is “improving the economy” is a total farce. It is a five trillion dollar lie. The reality is that [Mr] Barack Obama and the US Congress have been stealing trillions of dollars from future generations in order to make things tolerable in the present. If the federal government adopted a balanced budget next year, the debt-fueled prosperity that we are currently enjoying would start disappearing very rapidly and all hell would break loose in America.

At this point, the US national debt is over 15.7 trillion dollars. When [Mr] Ronald Reagan took office it was less than a trillion dollars. It took from the founding of America until 1995 for the federal government to accumulate 5 trillion dollars of debt. Under [Mr] Obama, we have accumulated more than 5 trillion dollars of new debt in just over 3 years.

[Mr] Barack Obama is prancing about the countryside touting his great “economic plan”, but the truth is that the only reason the economy has not totally collapsed is because he is stealing 150 million dollars an hour from our children and our grandchildren. Sadly, most Americans don’t understand that the current level of prosperity that we are enjoying is a grand illusion. Most Americans still expect things to return to the way that they used to be, and they are increasingly becoming angry that it is taking so long to get back there.

In Afghanistan, the "SMART" North Atlantic Treaty Organization (NATO) is in fact bound for a humiliating escape. "SMART DEFENSE" IS CODE FOR "THERE'S NO MONEY". Only five among 28 NATO member states spend 2% of their gross domestic product on the military - as NATO would have it. One of them was - surprise! - Greece. Here's yet another crash course on weaponized neo-liberalism. First Greece was more or less forced to buy expensive submarines from the French and the Germans; then it was forced to make budget cuts. Call it the "food for subs" NATO relief plan.

The US pays for no less than 75% of NATO's bills - yet another graphic demonstration of NATO as the European arm of the Pentagon. Still, in 2011 European Union (EU) members spent no less than $180 billion on defense. Not anymore. There's no money. So it will be up to the Pentagon to keep it going. And keep it going it will - with relish. As expected, this Sunday in occupied Chicago NATO approved - better yet, US President Barack Obama and his allies "just decided" - to go with the first phase out of four of the US missile shield for Europe.

Those who believe NATO's spin - this shield is not aimed at Russia, but as a defense against "evil" Iranian missiles - may join Alice in Wonderland. For all practical purposes, Russian military chief General Nikolai Makarov has already said Russia is bound to respond by stationing short-range Iskander missiles in Kaliningrad, near the Polish border. You can take NATO out of the Cold War but you can't take the Cold War out of NATO.