Wednesday, November 26, 2008

A VC's View on Regulation

I am optimistic about our new president and the healing he can bring to the country. Economically, he has a great opportunity to be a hero. I would suggest he call an end to the bailouts and as soon as possible sell the government interests back to the private sector. He faces a structural liquidity problem with too much regulation. Sarbox should be eliminated entirely. It doesn't even do what it set out to do. How did it help us gauge the banks for instance? FASB has run its course and should be eliminated in favor of the international alternative. Mark to market is a disaster that shows FASB to be out of touch. That said, this is the time the true entrepreneurs show their awesome creativity, and I expect to see some greatness coming soon. And if we get rid of SARBOX, we can take them public so everyone can share in their success.


oliver said...

Do you really think the current President elect is Likely to repeal regulation?

He has a track record of left of center and that usually means more regulation and a government knows best agenda.

Personally am at best hoping for no new taxes (and extensions of current tax relief that may expire) maintaining government spending.

We need economic stimulus, but everything I've heard him say on the topic includes make sure the people are protected === code to me for regulation.

Sure we don't want the banks in default, nor the automotive industry, we do need alternative energy that with current prices for oil and nat gas don't look really economic. Bailouts and long term investments, I suspect will come with strings.

The best I'm hoping for is simplified regulation and intelligent regulation. Honest books that are easy to read is a worthy goal. Hoping you will help.

Some revision I suspect is the best we can hope for, and I hope good input along these lines would be well received. That is what I'm hoping for but then I have on pink glasses and have had a couple of glasses of wine.

Jim Gable said...

Everything you list would be helpful in the extreme. I would add selling Fannie and Freddie to the private sector, and not repeating that mistake. After all, the current crisis would be physically impossible without their roles. But I'm personally pessimistic as our new president seems to travel mostly with people who don't even understand why these ideas are so important.