McNerney votes YES to kill more and more jobs as House passes the "Financial Reform" bill... State, National, International, posted by Amy, a resident of the Another Pleasanton neighborhood neighborhood, on Apr 14, 2010 at 11:55 am
Our local socialist (mis)representative, Jerry McNerney, votes YES along with the Obama regime in passing the Financial Reform bill thru the House.
This bill will severely restrict needed credit for small business owners in their startup and operations of their businesses.
This bill will also give unprecedented totalitarian authority to Obama to shut down any private sector business for any reason they deem necessary. Scary indeed. This is done only in totalitarian regimes.
Posted by Curious, a resident of the Del Prado neighborhood, on Apr 14, 2010 at 1:31 pm
@ Amy - do you have any other source for these claims other than the GOP website. Don't you think the Republicans might be a little biased in their analysis?
The Stimulus Package specifically included billions in tax cuts and aid targeted towards small businesses. Why would Obama now want to "severely restrict needed credit for small business owners in their startup and operations of their businesses"?
Financial Reform Bill Could Negatively Impact Angel Investors and Hurt Job Creation
Posted by ScottH on 03/26/2010 - 10:42
Back to blog homepage for: The Exuberant Accountant
Now that Washington is done with the health care bill, it appears they have turned their attention to financial reform. Recently, Senator Dodd introduced a financial reform bill that could render the startup community helpless. The proposed financial reform bill has the potential to negatively impact angel investments in startup ventures.
One of the great job creators in our country is small business and small businesses are often started with capital raised or some investment from a nontraditional funding source.
Tucked away in the comprehensive financial reform bill are provisions that would raise the costs of angel investors and startup ventures.
Under existing law, startup companies can raise money easily and quickly from “accredited investors” - individuals with substantial wealth or income.
There is no need for the companies or investors to gain approval from any state or regulatory office (i.e. these investors invest at their own risk).
Under this proposed bill there is a section that would require companies seeking outside investment from nontraditional sources to make a filing with the Security and Exchange Commission (which would have 120 days to review). This would raise the cost of seeking investors and it would delay the funding process.
There is no evidence to suggest these types of investments played any type of role in the present financial crisis. Therefore, these provisions in this bill would appear to be greatly overreaching and certainly will impact this key factor of capital formation. The result of all this will have a negative impact on job creation.
Am I missing something? I welcome your input on this. Has anyone heard of a situation where these startups and angel investments were part of the problem? Do we need government to regulate this area in order to protect these investors?
Posted by Pleasantan Mom, a resident of the Birdland neighborhood, on Apr 14, 2010 at 5:18 pm
Jeff is right when he says that "Thanks to Obama, there is no such thing anymore as "independent sources." Every source is either left or right since each side despises the other."
Ever since Obama took office, Democrats and Republicans have been acting like adversaries!
How far we have sunk since the Bush era! He was a uniter, while Obama is a divider! I know it was only a year and a half ago that true non-partisanship reigned in Washington and in the hearts of all true
Posted by Jeff, a resident of the Another Pleasanton neighborhood neighborhood, on Apr 14, 2010 at 5:59 pm
"Ask not for whom the bell tolls, it tolls for the."
I am dependent on Angel investors since I work in a startup and need startup funds later this year. If this bill is signed into law, I will be another job loss statistic (i.e. a 'win') for the Obama democrats as my family will be a victim of this job destroying Administration. (Thank you Mr. McNerney for being so 'friendly' to business development).
Posted by Dark Corners of Town, a resident of the Country Fair neighborhood, on Apr 14, 2010 at 6:02 pm
To 'Curious' and 'Nurse Shark' - Using your logic, we should never believe what a Democrat Congressman says on the floor of the House, or gets copied verbatim onto a Democrat website. Stop spamming PW with your garbage logic.
For more details on HR 4137 and the effect on investing in startups see the New York Times (not a GOP or right leaning institution) (Web Link). Included in the article are references to VentureBeat, Huffington Post and Business Insider.
As for 'unprecedented totalitarian authority to Obama to shut down any private sector business for any reason', I'm not sure it's written into the bill, but I'll look.......
Posted by Nurse Shark, a resident of the Canyon Creek neighborhood, on Apr 14, 2010 at 6:46 pm
DCOT wrote: "To 'Curious' and 'Nurse Shark' - Using your logic, we should never believe what a Democrat Congressman says on the floor of the House, or gets copied verbatim onto a Democrat website."
You say this as if accepting what politicians say without applying critical thought is what normal people do. Of course we shouldn't simply take their words at face value--politicians lie, distort and spin all the time!
Apparently this is news to you, but you ARE allowed to balance out your information by taking in an educated second opinion. Or better yet, checking facts. Reasonable people do this all the time. That's why so few of the reasonable people who post here actually believe the sky is falling, Obama's a dictator, death panels, etc.
Posted by Dark Corners of Town, a resident of the Country Fair neighborhood, on Apr 14, 2010 at 7:17 pm
To 'Nurse Shark' - I take shots all the time. The sky can be falling even if Obama is not a dictator or there are no death panels. If HR 4137 passes with Section 926 and others included, it will have severe costs and consequences on innovation and business formation in the Bay Area. Amy (the original poster) was right, but could have used less inflamatory language.
Maybe you and Curious could take some of your own medicine and check out the facts before adding to the flames. It was you that used the term 'death panels' twice in this post when this thread had nothing to do with Health Care.
Posted by Patriot, a resident of the Another Pleasanton neighborhood neighborhood, on Apr 14, 2010 at 10:13 pm
To "Dark Corners ...",
What is the Republican alternative to this? It seems that the Republican doctrine of bailouts for "Too big to fail" financial companies combined with unregulated derivatives trading is what got us in to this mess. George Bush proposed TARP in the first place and pushed it through congress with the support of many Republicans. Even Sarah Palin, darling of the tea party movement, supported it.
On top of that, the Federal Reserve has bought more than a trillion dollars worth of toxic assets from financial companies to prevent them from failing.
So where is the legislation from the Republicans to prevent another massive bailout of financial companies in the future? Republicans seem to want it both ways. They want free markets and light regulation when it suits them, but when their biggest financial contributors get in trouble they throw all that out and pull a huge taxpayer bailout. They accuse Democrats of redistributing wealth, but they do some of the largest redistribution of tax payer wealth in history. We need some kind of financial reform to prevent this from ever happening again.