Short post. One of my primary arguments on this blog is that the Initial Public Offering (IPO) process is corrupt, flawed, or rigged to award the insiders with the opportunity to accumulate outrageous wealth at the expense of the company, the employees, the customers, and the public (outsiders) investors. If anything, our government should be legislating laws and creating regulations that clamp down on this legalized fraud. But, exactly the opposite is now taking place. Our trustworthy government is pushing through a bill under the banner of job creation that makes IPO’s for companies with revenue under $1 billion LESS REGULATED and LESS TRANSPARENT! That is correct, I am yelling. Most of the social networking and media companies (or the DOT COM entities in the 2000 bubble pop) that have gone public in 2011 and 2012 had revenues under $1 billion, and the insiders have become instant billionaires or multi-millionaires. This bill stinks!
I am now more certain than ever that our government is corrupt and bought by the venture capitalist, investment banks, Wall Street, and people with an immense amount of wealth. Although this bill endured counter arguments from the SEC and others that have concerns that the bill will open the public investor up to more fraud, the bill is zooming through with support from President Obama and the democrats. The people behind the bill development were venture capital lobbyists Corrupt Bill. The lobbyists and government claim this bill will create more jobs, but the real impetus behind the bill is to enable more IPO’s and open the door for insiders to make themselves millionaires and billionaires. I have already illustrated how the IPO process has been corrupted in that it is more concerned about making the insiders rich as opposed to raising capital for the firm. But the fact that President Obama, a democrat and man who campaigned on change, grants full support of the bill, illustrates how corrupt our government has become. Cheers my fellow-man — here is to the über rich taking away greater chunks of the pie. Below are links to additional articles for your reading pleasure.