November 4, 2014
I find the paradoxical concerns of our government ironic.
America is strong because of our entrepreneurial spirit and willingness to take risks. Yet the SEC has protected, as a special class, individuals who need to take risks to advance, to the detriment of society as a whole.
How is it that nearly anyone can carry a gun, but can't invest $1000 in a startup that is advertised online?
Why can people gamble away their nest eggs and educational funds, yet be unable to participate in businesses seeking capital?
How are investment bankers a protected class, such that they may monopolize the capital markets and knock down the modernization of finance?
Why can't individuals easily raise capital for their ventures across state lines? Some projects need to cast a very wide net.
Is the SEC thinking the way the general population considers Ebola? Tiny number of cases, but we have to quarantine everyone?
Why can't industry experts who aren't accredited investors from across the county mutually invest in a new venture that they have the ability to analyze and make a decision about investing? We prohibit this type of synergy. Does that make sense?
Investment bankers, venture capitalists, and insiders are no better at picking winners than the general public. If I can blow $5000 in Las Vegas, then why can't I blow $5000 on a high-flyer? The odds would be better.
The SEC needs to find a way to take the bridle off the investing public's neck. Sure, people will do dumb things and lose their shirts, but they are doing that perfectly well right now.
Why protect them by eliminating the upside of our commerce? Small business creates the jobs. Let them do it. Stop getting in the way