So Matt Taibbi wrote over at the Rolling Stone how awful this new jobs bill is because it removes regulations that cost small businesses thousands of dollars to get an Initial Public Offering (IPO) and the bill – gasp! – helps them out. He cries about it letting companies do whatever they want with their financial books to lie to investors, and investors are just going to be so dumb that they’ll just invest their money with any IPO because, well it’s a small, start-up IPO and the books look good.
Seriously, this post is just good for a laugh. It sounds like Matt isn’t smart enough to understand that investing is RISKING business. Any and all investments in the stock market are risks. Matt is whining that the government isn’t forcing companies to spend thousands so they can then raise money they lost so that the government can approve the IPO or the books? Seriously?
Dear Matt, here’s a wake-up call: Solyndra. Ring a bell? The government looked at their books and did everything you are complaining that the government no longer does, and that company lost $500 billion of our tax money. Where is your outrage at the government losing $500 billion?
Matt makes it sound as if investors are children who don’t know how to take risk at all. As a small investor, I am plenty smart enough to know where I want to take risks and where I don’t. I can assure you, Matt, I don’t trust the government with my risk, and frankly, Social Security is risking a retirement fund out of which, if I had the choice, I would pull my money and put it somewhere else.
Honestly Matt, wake up. Do you really think an investor with thousands or even millions of dollars is so dumb that he doesn’t know how to ask for bank statements, match them up, and then ask questions because he forks over that much capital? Do you really think a guy like Mitt Romney, who made a living investing in business, relied on the government accountability standards?! Capital investors know what they are doing and are smart with their money. Let’s go back to Solyndra. Those capital investors got the government to guarantee their money in case the company went bankrupt. Now the company’s gone, tax payers are out the money, and capital investors walk away without a loss. These guys are smart with money. They don’t need the government to show them a good deal or bad deal; they have brains and know how to use them.
But Matt, if you’re so worried about a small IPO, here’s an idea: Don’t invest in that company. Don’t trust the numbers and if they look funny, don’t give them your money. It’s your money and you get to decide what to do with it. Doh!
Taibbi should’ve stopped at “Boy, do I feel like an idiot.” Caveat emptor!
“Even worse, the JOBS Act, incredibly, will allow executives to give “pre-prospectus” presentations to investors using PowerPoint and other beguilements used to fool the easily fooled fools.”
So small companies can get IPOs and find themselves with investors who will help build the companies? You’d think the only people against this are those nasty nasty “corporations” who would end up with competition instead of small companies slowly gaining capital on sales giving the slow moving but powerful “corporations” time to find and destroy them.
Otherwise you want to start a business? Sure. Have a good product, some start up capital and then start selling. If it’s a great idea it will sell, sure. But only to your local region until you open up more stores/markets. Then more stores. A great idea ends up taking DECADES to penetrate the market.
Now once you have a foothold you can put together an IPO and, upon approval of your idea to investors, get massive funding to spread your idea.
SIDE NOTE: I always liked the term “Progressive” because the truth of the matter is that it’s nothing but.
Solyndra was indeed a sickening failure by government, but do keep in mind it was $500 million lost not $500 billion.
True, Solyndra exclusively was $500 million, but there are several other companies that are also declaring bankruptcy, costing the taxpayer billions. The total amount is still unknown as every other month a new company makes a dread announcement. It’s like some obscene auctioneer barker, “howmucharewegoingtocostya, doIhearabillion, a billion, therewegohowabouttwobilliondoIheartwogimmietwo, two in the back, let’shearthreegivemethree, sold! At three billion!”
I wonder how well these Leftists would stand by Social Security if it had to send each person who’s contributing it by force the same type of prospectus that private sector investors receive. If they’re convinced it’s the best thing, than make it optional with complete disclosure. If it’s the best deal around people will flock to it. If not then it deserves to be treated the same as Bernie Maddof.