Markets of Magical Thinking
Americans are great believers in the value of entrepreneurs and small business, and a new US law will make it easier for small companies to raise money and bypass the regulatory “friction” that firms encounter when they go public. The rest of the world should resist the temptation to follow America's lead: sometimes friction has a purpose.
https://prosyn.org/UzgtvMW
KAZAN – Americans are great believers in the value of entrepreneurs and small business. That faith underlies the JOBS (Jumpstart Our Business Startups) Act, a new law that will make it easier for small companies to raise money and bypass the regulatory “friction” that firms encounter when they go public. The law assumes that people who can't find jobs may be able to find investors instead, and that small companies will be able to get the financing they need to grow bigger and hire more people. Angel investors, friends, and family will boldly go where banks may fear to tread.