the regulatory pendulum and links


In the wake of the wildly popular – at least with hedge funds, investment banks and tech firms “JOBS Act” (read about it:  jobs act – Google Search) we’ll see an explosion of interest in investing in small companies in the US.  I suppose it was only a matter of time until the next bubble was created.  I am paid to monitor this type of regulation and assess its impact, and I think we’ll see a huge small company investment bubble over the next few years.  You’ll read about how hot the market is for small company IPOs and hear about how the US is the most unregulated, and therefore most friendly, market in the world.  Inevitably, it will end.  We’ll have another Enron, or Worldcom, and we’ll start all over again on the other side of the pendulum.  Regulations that were created in the 2002-2003 post-Enron reactionary period are being rolled back now in favor of “growth.”  It will create growth, of that I have no doubt.  Will it create real growth, or the phantom growth of the Madoffs and MLMs of the world pushing “investments” on unsophisticated investors?  Time will tell, but I bet on the latter.  Hedge your bets.  A bubble is coming.

Links… all worth reading…

And a couple of carnivals I participated in:

Photo Attribution Some rights reserved by prayitno