That’s obviously bad news for investors and Facebook insiders. But state legislators and Gov. Jerry Brown may be singing the blues, too. Nothing drives state revenue quite like capital gains, and budget analysts at one point predicted a $2.1 billion bump from sales of Facebook shares. That was based on a price of $45. With the price headed in the other direction, the legislative analyst says capital gains revenue for 2012-13 could be hundreds of millions of dollars less than anticipated. Easy come, easy go.
– Jim Sweeney