The JOBS (or FRAUDS) Act signed by Obama: A Disaster in the Making, page

President Obama signed the fictitiously named JOBS Act into law on Thursday. The law's intent is to limit or completely eliminate regulatory and filing requirements with the SEC for startup companies engaging in IPOs (Initial public offerings) where they're seeking venture capital and equity investment money. However, the laws definition of "startup company" encompasses 98% of all IPOs historically!

At the same hearing, Lynn Turner, formerSEC chief accountant and accounting consultant at LitiNomics, stated that by this standard, 98 percent of IPOs since 1970 would have been considered “emerging growth companies.”

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The bill purportedly aims to create jobs by deregulating and essentially making the Sarbanes-Oxley Act null and void. Sarbanes-Oxley was passed in 2002 after the Enron fraudulent collapse to tighten accounting standards and to try and eliminate fraud in securities markets.

The Sarbanes-Oxley Act of 2002 (often shortened to SOX) is legislation enacted in response to the high-profile Enron and WorldCom financial scandals to protect shareholders and the general public from accounting errors and fraudulent practices in the enterprise.

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However, financial criminologists like Bill Black (great guy - he took down the Savings and Loan scammers) says this Bill is nothing but a recipe for fraud and a way to create jobs for financial scam artists. Watch this video - great interview.



Apparently this new law will open up the door for already established mega corporations like Apple to split their companies up and start engaging in the fictitious "subsidiary" games like Enron did and to create massive financial fraud. It also opens up the door to "Crowdfunding", where seemingly real new startup companies get investment money online from the unsuspecting crowds. Remember back to the Tech bubble where startup companies bought domain names and did IPOs with no intent of actually producing a product or providing a service? Yeaaaaaaaaaaaaah! It's the American way!

Many experts say the JOBS Act won't do anything to help small businesses as funding is rarely a problem for startup businesses. Having a viable product or service and good management are more important.

It's a common fault of many start-up ventures that they pay more attention to raising capital than to building a viable business. I speak from firsthand experience. A dozen or so years ago I worked in a couple of Internet start-ups that had big plans and tried to raise big money. In one of them we burned through around $10 million of other people's money without a single dollar in revenue before the investors finally pulled the plug.

According to the U.S. Small Business Administration, there are at least 10 reasons for small business failure. Lack of funds is one, but the other nine are lack of experience, poor location, poor inventory management, over-investment in fixed assets, poor credit management, personal use of business funds, unexpected growth, competition, and low sales. The JOBS Act won't do much about these.

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It's my belief this law is simply a way for the largest organized criminal outfit (Wall Street) to steal more money from the masses. Yes, some jobs will be created, but many more will be lost because this law simply opens up the door for fraudulent money changing. Nothing more, nothing less. The US's and multi-national corporations manufacturing base is long gone in the US and we can't sustain a service based economy based on trade deficits, so why not balloon up one more giant fraudulent bubble before the party finally ends?

And Remember, Obama the savior signed it into law. Republicans heavily pushed this bill. In fact, it was completely bi-partisan. This is a clear cut example that in the backrooms, Wall Street and corporate America own the government. Democrats = Republicans on the big issues of finance, war, and peace. This is also one area where I completely disagree with Ron Paul. We see time and time again that financial de-regulation leads to rampant fraud and corruption. It's what brought the world economy to it's knees in 2008 over the housing/mortgage securities bubble.

reply to post by Drew99GT

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So, more importantly, how can the average person exploit this act? I know the giant corporations will already have teams of lawyers and researchers finding the ways to exploit and get richer from any new law, but how does an average person do it?

Can I now start an "emerging growth" company, with a mere business plan and address, and list it as an IPO and get millions of dollars in capital to grow my business?

Originally posted by getreadyalready
reply to post by Drew99GT

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So, more importantly, how can the average person exploit this act? I know the giant corporations will already have teams of lawyers and researchers finding the ways to exploit and get richer from any new law, but how does an average person do it?

Can I now start an "emerging growth" company, with a mere business plan and address, and list it as an IPO and get millions of dollars in capital to grow my business?

Yup. Go online and seek "Crowdfunding" money. Start a Facebook page. Create a fake carpet cleaning company like this guy did!

www.bloomberg.com...

I'm starting to think that over the past 3 decades the largest component of US GDP is the branding, selling, and repackaging of bull s*$t. Since the boom ended after WWII and the baby boom generation of mass productivity, bull s*$t has become the number one industry, and without it, the US would collapse!

George Carlin had a great bit about that. If truth and honesty were forced into the US economy, the system would collapse!

This is the worst part of the legislation. I mean, SERIOUSLY? Only 2 years of audited financial statements required for an IPO? No audit of internal financial controls for 5 YEARS? That means a "startup" can cook the books with no internal audits of accounting controls and create crappy financial statements that an auditor would have a hard time finding the fraud!

www.nuwireinvestor.com...

www.cnbc.com...

reply to post by Vio1ion

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Oh, you mean China buying up even more US companies and assets. Yea, that's great...

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