June 30, 2012
It is my understanding that you have 'de-regulated' or, to put it another way, you have removed the requirement that 'new companies' have their financials properly and honestly audited. This is a mistake.
I once owned some CMS Energy . . . they was losing money and the financial reports filed with the SEC were honest - but I did not understand them (at that time). The web reported positive earnings and I 'improperly invested'. I can blame that on myself and my lack of knowledge . . . but if you allow companies to not honestly file information that problem will get a LOT worse.
The 'Crowd Funding' thing . . . this will make it all too easy for frauds and thieves to market snake oil and steal novice would-be-investors moneys.
Similar story for allowing anybody to invest via hedge funds. (In fact, in my opinion, hedge funds should be more strictly regulated because the 'rich and infamous' do use them for advantage.) Opening hedge funds to the 'unwashed masses' creates a probability that the snake oil salesmen will create a hedge fund solely for the purpose of separating the rubes from their money.