Saturday, March 24, 2012

Neither Onboard or Off

So there's this new "Kickstarter" law that's being passed. By and large I'm favorable toward people being able to crowdsource any sort of funding.
Now I respect Bernie Sanders. And he seems afeared that the law will lead to fraud and (primarily) old people being ripped off.*
So, uh, yeah. I think we need a more sophisticated analysis of this proposed new law to really reach any conclusion.
Certainly the Jumpstart Our Business Startups Act is not actually important to startups. I can imagine it might launch a thousand movies -- all of which will lose 100% of the money put into them.
I think too that it might be best if there were a limit to how much an individual could "invest" in all of these Kickstarter-esque startups in a year. Say $500. That way nobody could sink their own pension on putting thousands of dollars into scores of different businesses.
Bernie has a point that this law could create a gazillion mini-Enrons. But the key here is "mini". Not full-sized Enrons. Because every idiot with a half-baked idea will make a public offering. I wonder how much the SEC filing and the yearly costs of one of these corporations will be.

*Hey old people -- why do you fall for scams so easily? Just stop doing that. You didn't fall for them when you were in your 30's and 40's, why do you fall for them now?

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