By Stephen Lendman
On April 5, as expected, Obama signed the Jumpstart Our Business Startups Act (the JOBS Act).
Again, America’s 99% was betrayed. Overwhelming bipartisan House and Senate support backed the measure. The bill does nothing to create jobs. It facilitates greater fraud. America’s race to the bottom continues.
Wall Street’s again celebrating, and why not. Only bankers could love this type bill. They had to. They wrote it. It opens greater avenues for grand theft.
The SEC long ago abandoned its regulatory mandate. Under financial industry insider Mary Schapiro, it’s in safe hands. Her job just got easier. The bill eliminates SEC reporting requirements for enterprises with annual revenues up to $1 billion.
[Editor’s note: The Security Exchange Commission: SEC, used to be the Police of Wall Street in charge of monitoring Frauds, and had the power to make investigations an to indict People and Companies.]
The implications are obvious. Not only will big fish steal freely, so will smaller ones.
The measure also makes it easier for companies to raise oversight-free capital online. They can have up to 1,000 investors without providing the SEC financial data. In addition, they can solicit them more freely. It’s similar to how drug giants promote toxic products. Users have no idea what they’re getting.
Former bank regulator/financial fraud expert Bill Black called the measure “insane on many levels. It creates an extraordinarily criminogenic environment in which securities fraud will become even more out of control.”
Leading up to passage, back room dealmaking ignored expert anti-fraud input. The best, brightest, and most honest independent analysts unanimously condemned the bill. Black calls it “the sick face of crony capitalism.”
Matt Taibbi’s “The Great American Bubble Machine” called Goldman Sachs “a great vampire squid wrapped around the fact of humanity, relentlessly jamming its blood funnel into anything that smells money.”
In fact, it’s much worse. Wall Street and other FIRE sector (finance, insurance, real estate) giants together comprise the GREATEST “vampire squid.” They’re all the stronger by Washington’s complicit role.
Their business model is grand theft. They’re crime families, not legitimate enterprises. They make money by stealing it. They wreck economies, communities, and households. Corrupt politicians let them. They’re bribed to go along. As bad as things are, they’re getting worse.
On April 5, The New York Times headlined, “Obama Signs Bill to Promote Start-Up Investments,” saying:
Surrounded by complicit lawmakers and industry crooks, Obama signed the JOBS Act. He called it a “potential game changer.” The Times article went along with the charade. It quoted him saying:
“For the first time, ordinary Americans will be able to go online and invest in entrepreneurs that they believe in.”
“Our economy has begun to turn a corner, but we’ve still got a long way to go. We’ve still got a lot of Americans out there who are looking for a job or looking for a job that pays better than the one that they’ve got.”
Unexplained was that 25 million are unemployed. Millions more are underemployed.
The real unemployment rate’s about 22.5%, not the fake 8.2% figure. The economy’s dead. Main Street’s in a protracted Depression. Force-fed austerity worsens it. Poverty or households approaching it’s at record levels.
Millions are suffering. Political Washington’s indifferent. No matter. Friday was a day for “celebrating a rare bipartisan achievement on legislation that had been pushed by Republicans and embraced by Mr. Obama in his (January) State of the Union address.”
House majority leader Eric Cantor (R-VA) said:
“I hope it represents the kind of bipartisan work that we can accomplish here in Washington over the next few months. We have a very difficult economic situation still. We are nowhere near out of the woods.”
House Speaker John Boehner (R-OH) called the bill a “key part of the Republican jobs plan,” adding:
It’s “good news for entrepreneurs and aspiring small businesspeople struggling to overcome government barriers to job creation.”
“The House will continue to lead the way on jobs, and with help from President Obama and Senate Democrats, we can get these things done for the people we serve and the country we love.”
It’s “good news” all right, but not for long-suffering households. This measure increases their torrent. It does nothing to alleviate it. As expected, Obama went along. Imagine conditions ahead if he’s reelected.