If Washington Wants To Create Jobs, It Should Get Out Of The Way In Silicon Valley

from the lead,-follow-or-get-out-of-the-way dept

It's already quite clear that Sarbanes-Oxley has done very little to actually prevent fraud of any kind, but it has been a tremendous burden, especially on smaller, innovative companies that help grow the economy and create new jobs. It's basically become a huge tax on tapping into public financial markets for growth. Michael S. Malone is now making the argument that if the incoming presidential administration is serious about creating jobs, it's time to roll back SarbOx and other accounting rules that have acted more for theatrical purposes rather than any legitimate reason. Basically, all they've done is create new reporting requirements that do little to nothing to either prevent fraud or clarify a company's actual financial position (its intended purpose). Regulators love these sorts of bogus rules because it makes it look like they've done something, when really all they've done is put up huge hurdles for actually doing anything. I'm all for radical transparency in financial info, but that's not what has been done. Instead, we've made it burdensome to actually grow a company -- and that doesn't help create jobs. It helps kill them.
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Filed Under: economic growth, jobs, sarbanes oxley

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  1. identicon
    Anonymous Coward Deux, 24 Dec 2008 @ 7:01pm

    If Washington Wants To Create Jobs, It Should Get Out Of The Way In Silicon Valley ??

    Though the Grant Thornton paper “represents the problem from their particular viewpoint”, I ponder why an astute investor would invest in an IPO in a less regulated market.
    Recent events would indicate that the term ‘Regulated’ anything is a simple sop, as the regulators failed miserably, criminally in my view, in the performance of their responsibilities.
    Exhibit A: Bernard L. Madoff Investment Securities LLC. I believe that Institutional Investors are experiencing some difficulty since Barnie’s institution went belly up.
    Your statement, “The overall problem has been a complete lack of understanding of the underlying problem right at the grass roots of society where there is no access to capital at all.” is spot on!
    Here in ‘the Land of the Free”, despite hundreds of billions of taxpayer wealth being poured into the remaining banks, no credit has trickled, slid, echoed down to anyone but the whales, who I am certain will, after bonus disbursement (think AIG) gobble up their lessers with OPM.
    Americans are big on Credit Scores, but why bother having one when no one is lending? Perhaps that is why a growing number of responsible citizens are not paying their monthly minimums to the lenders.
    The time when Debt was treated as Income has come to a crushing conclusion and American Express has become a bank. Amazing.
    Of well, back the Austrian School. I hear the skiing is superb.

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