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Jobs Act 2012 a Recipe for Fraud

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It is hard to say enough bad things about the Jumpstart Obama’s Bucket Shops act in a short space. I’m in the UK now, and a contact asked me to explain it to him. When I told him of some of the major provisions, he could not believe what he was hearing. He said (correctly) that it was a great boon for conmen and aside from a few companies who were early to raise money under the new law, would make obtaining equity funding more difficult and costly for legitimate operators.

This Real News Network interview with Bill Black gives an overview:


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43 comments

  1. Hal Roberts

    Will Obama OK this bill just to generate monetary juice to the system (The Big Lie). They can have another collapse of the system and on with the Globalist Bail Out. Thats all they want. (on our dime USA)

  2. F. Beard

    I can’t help suspecting our entire financial regulatory apparatus is a ridiculous kludge on top of an inherently dishonest money system. I mean it’s no secret that “banking was conceived in inequity and born in sin”, is it? I mean how many more hundred years will it take to perfect a system that has shown itself to be dangerous unstable? Do we even have those years?

    But at least I know why the world will end. The banks will be a major reason.

    1. Evelyn Sinclair

      Not with a bang, not a whimper,

      More a transfer of silk scarves (fetchingly tied together, one after another) from one pocket to another, via a magical transit through plain air, invisible all the way: sheer sorcery.

      That is exactly what it looks like to the uninformed “public” and what it is supposed t look like to “Wall Street” too.

  3. Kitchen Help

    The solution is simple men, Roseanne Barr 2012. Go Green!

    Who can forget, two years after her show ended:
    ‘The Financial Services Modernization Act of 1999 did away with restrictions on the integration of banking, insurance and stock trading imposed by the Glass-Steagall Act of 1933, one of the central pillars of Roosevelt’s New Deal. Under the old law, banks, brokerages and insurance companies were effectively barred from entering each others’ industries, and investment banking and commercial banking were separated.’

    1. lambert strether

      Butterfly wings in Brazil, Roseanne‘s last season… It all makes sense, I guess.

      * * *

      That said, the Greens are on the ballot up here in the great state of Maine, and whether Jill Stein is on the ballot or Roseanne is, I’ll vote Green.

      1. Aquifer

        All right, Mr. Strether!

        But i don’t think anyone has to really wonder as to the nominee – Stein has won all the primaries so far with overwhelming margins. Wonder why Barr doesn’t drop out… could be any one of a number of reasons, I suppose …

  4. Dave of Maryland

    If they smash everything back to the stone age, will that be enough, or can they go further still?

    1. Hugh

      “To reign is worth ambition, though in Hell:
      Better to reign in Hell than serve in Heaven”

      or serve the 99%. It could be the motto of our elites.

      1. PunchnRun

        Funny thing about that. I watched “The Mission” last night. My paraphrase of the Jesuit creed is “to serve God without expectation of reward in any way.” So where does that put those who subscribe to “better to reign in hell than to serve in heaven?” Are they busy creating their hell to reign in?

    2. just me

      “smash everything back to the stone age” — that’s a funny thing. Before the invasion of Afghanistan, an Afghan-American sent an e-mail to a friend who forwarded it, virally I guess, because I saw it, about the idiocy and shame of bombing Afghanistan back to the stone age, because it was already bombed back to the stone age. Just stop. Just be human. Just stop. But we didn’t, and we are still bombing it back to the stone age.

      And I’m thinking, where’s the justice? And I am not looking to the Department of Justice. All the disaster, murder and misery we bring on to others… and, funnily, now seem to be eager to bring onto ourselves in the name of “homeland security.” Mayberry with a tank, tasering and pepper spraying as a police response to citizen gathering, citizen anything. A visible citizen is a threat to the state. There is nothing that is going to stop this train wreck.

      And I think of Lincoln’s Second Inaugural Address. It’s short, it’s amazing: http://www.bartleby.com/124/pres32.html

      Fondly do we hope, fervently do we pray, that this mighty scourge of war may speedily pass away. Yet, if God wills that it continue until all the wealth piled by the bondsman’s two hundred and fifty years of unrequited toil shall be sunk, and until every drop of blood drawn with the lash shall be paid by another drawn with the sword, as was said three thousand years ago, so still it must be said “the judgments of the Lord are true and righteous altogether.”

      Still, his last word:

      With malice toward none, with charity for all, with firmness in the right as God gives us to see the right, let us strive on to finish the work we are in, to bind up the nation’s wounds, to care for him who shall have borne the battle and for his widow and his orphan, to do all which may achieve and cherish a just and lasting peace among ourselves and with all nations.

      So I’m waiting, till we can see our way to the right, I guess, till we can afford to care for each other again. I wonder if that’s where train wrecks deliver us.

      1. just me

        the viral e-mail by Tanim Ansary, 9/13/01: http://tcotrel.tripod.com/afghanletter.html

        We come now to the question of bombing Afghanistan back to the Stone Age. Trouble is, that’s been done. The Soviets took care of it already. Make the Afghans suffer? They’re already suffering. Level their houses? Done. Turn their schools into piles of rubble? Done. Eradicate their hospitals? Done. Destroy their infrastructure? Cut them off from medicine and health care? Too late. Someone already did all that.

        Sounds like us now, except we’re doing it to ourselves with insane financial fraud. Actually I think that’s what Harry Shearer calls it on his radio show, “The New F-Bomb” — foreclosure. It’s poetic, at least.

  5. Lyle

    The whole thing is of course that no one holds a gun to ones head and says buy the trash. One should just call the act let the buyer beware of the peddler of securities act of 2012. All the CFPB needs to do is IMHO say that you should assume that anyone who cold calls on securities is a cheat and fraud, and that you should assume that your broker is a used car salesperson wannabe.
    Of course people are gullable in the extreme else Madoff would never have madeoff with the money, and to watch american greed and see the number of schemes that are exposed there.
    The main issue is to tell folks what the average is and to expect to beat the market unless you are the house is very unlikley.

    1. nonamehere

      Oh and like your S&P 500 stocks are any better, any less a fraud. What will you do when Warren Buffet turns out to be the next Madoff?

      1. Nathanael

        Unlike most companies, Berkshire Hathaway is extremely transparent.

        Of course, it owns Wells Fargo stock. Which is completely worthless. So there’s that.

      2. Lyle

        First thing to monitor if its too good to be true it probably is. Madoffs returns were clearly to good to be true, basically anything that beats the market over a long time frame is to be suspected, in particular a fund like Madoffs that never had a down month. It is IMHO a manifestation of our national obsession with get rich quick, given that Virginia and the West were founded as get rich quick schemes (at least as was NYC). (A gold rush is the ultimate get rich quick scheme, and the folks that founded Va thought there was gold to scoop up near by).
        Of course the spirit of the entrepreneur contains a bit of get rich quick in it, so get rich quick has both good and bad effects.

  6. Buy Used

    So…I guess when the S&P 500 packages up all their mistakes and bad ideas into a new subsidiary to spin off and monetize with a brand new IPO, we shouldn’t buy those either.

  7. Blurtman

    Fraud and crime are essential ingredients for economic recovery. Hence, no banksters in jail. Puritans are usually asked/forced to leave, no? Those whom the gods seek to destroy,….

    1. JTFaraday

      …will form a colony in Massachusetts Bay, and tell the Baptists and Quakers to keep movin’

  8. Marcus

    I loved how Forbes magazine tried to spin this as if critics were blowing the problems with the bill way out of proportion.

  9. sd

    “It is a bad sequel to a bad movie,” said Eliot Spitzer, the former New York attorney general. “It shouldn’t be called the JOBS Act, it should be called the Bring Fraud Back to Wall Street Act.”

    1. Jane

      I think Mr. Spitzer has got that wrong.

      “Bring fraud back” ???

      I didn’t know it had ever left.

      1. Up the Ante

        Some of his clients must not have wanted to hear it hadn’t left.

        Or he’s a part-time PR man.

      2. Nathanael

        From the 1930s through the 1980s, there wasn’t that much fraud on Wall Street — the SEC did its job.

        We’re pretty much “back to the 1920s” already, and it looks like this act is designed to take us back to the 19th century financial system. Yeesh.

  10. sleeper

    There is something funny going on here -

    10 trillion dollars missing in the mortgage market – someone somewhere bought the securitized mortgages with real dollars.

    a billion dollars a day missing in fraudulent petro dollars missing even though it has finally been admitted that there is lower demand, more production, and ample refinery capacity.

    Another trillion in kickbacks in the nuclear power revival.

    Another trillion or two in givebacks at the industrial level.

    And perhaps another 5 trillion or so in high speed computerized trading

    Now of course perhaps some 20% is skimmed off in the form of inflated salaries, bribes, the congressional 1% rule, various fees, trading fees, etc.

    So where is the 7 or 8 trillion left /

    I mean where is the money ?

  11. Conscience of a Conservative

    We need to end naming congressional acts with acronynms that are the opposite of what they are about.
    JOBS act
    Financial Services Modernization Act
    Commodity Futures Modernization ACt
    Judicial Procedures Reform Bill of 1937

    And agree the JOBS act will be another stab in any accountability companies have to share-holders. This will be a boon to those people who just want to extract money from investors. After the inevitable does occur and the JOBS act is pointed to as a culprit we will find much like the MF Global situation that investors lose faith in initial public offerings market.

    1. LeeAnne

      that’s a wonderful idea; that people would just be turned off eventually and sotp buying the IPOs. But I suspect that’s not the record of Canadian penny stock schemes, or telemarketing deals to the poorest, most naive and desperate.

  12. briansays

    just remember
    when the proverbial sh#t hits the fan
    its Bush and the republicans fault right?

  13. Sauron

    Regulate the individual via the national security state. Freedom and liberty for the corporation via de-regulation.

    Someday, far in the future, will a heroic woman or man–a new MLK–stand up and say, “Enough. People are corporations, too!”

  14. deeringothamnus

    controversies about the new bill aside, there must be a need to make investing more democratic. It seems very unfair that only “qualified” investors, of a given high net worth, are at present allowed to invest in start up companies. Why should higher net worth people have a right that others do not? That seems crazy to me, and, fundamentally no egalitarian and undemocratic. I agree every crook in the Universe will take advantage of every dumb investor. Maybe we need a better law. or maybe this is a work in progress, that can be fixed once the problems surely occur. I would hate, however, that we in the US end up with a white collar crime nightmare like the Toronto stock exchange. For that matter, does anyone really trust the bigger US exchanges?

    1. Nathanael

      This is not an accurate description of reality. *Anyone* is allowed to invest in startup companies, *right now*. This means the family and friends of the principals can and do invest.

      The startups are not allowed to *advertise* to anyone except “qualified” investors.

  15. Lloyd C. Bankster

    Thanks to the JOBS act, and that SOX investor protections established in 2002 will now be gutted, the Squid will be helping bring back a number of dot com companies such as Webvan (the online “credit and delivery” grocery business), Boo dot com and pets dot com, and we’re looking for a few good research analysts to promote these start-ups to investors.

    Remember Jack Grubman, telecom analyst? His kids must be nearing college age now.

    Get Jack on the phone.

    If Citigroup had to donate $1 million in 1999 to get Grubman’s kids into the 92nd St Y nursery, how much would it cost to put those Grubman brats through four years of Harvard?

    1. A Good Bankster

      Whatever the cost, it’ll be worth it once muppet investors see his strong buy ratings on boo dot com and pets dot com.

  16. Aquifer

    Interesting that the last major set of de-reg bills were pushed and signed by a Dem admin and so is this one …

    Shucks, i’m confused, i thought the Reps were the party of de-regulation?

    1. Because

      This was pushed by the Republican Party and signed by the “DLC” Democrat. Got the issue there son?

      Ever heard of the Grover Cleveland wing of the Democrats?

  17. Damian

    The only tool left in the bag is Fraud – let it live and grow stronger!

    hopefully it will hasten the eve of destruction – the only solution is the complete death of the system

    The houses now are scrap and dust, sea to shinning sea – Fraud enabled – no value!

    let the Mullets eat it one more time !

    they never were “muppets” – there are only Mullets -

    Mullets are baby seals – always have been

    The lincoln town cars – ten men – arrive at the beach in seperate cars- the suits get out – walk to the trunk – take off their shoes – roll up their pant cuffs – take off their suit jacket – and pick up the …baseball bat(s)

    walk the beach to the shoreline – ten abrest – where the baby seals all lined up – look up adoringly and……cute –

    with cadence…..club the baby seals – rip their skin off – take the skin and walk to the awaiting limo – dump it in the trunk

    clean off the blood and gore – put your shoes on, your suit jacket, straighten your Hermes tie and get in the limo – and…..drive off in mass…within the designated speed limit.

    the tide comes in – washes the carcasses and detriss out to sea and the beach is ……….clean – no one saw a thing!

    no fuss no muss!

    God Bless America !

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