This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Obama Leadership Fails in Phony 'JOBS' Act

NEW YORK ( TheStreet) -- Lately I've been wondering who has more reason to be annoyed with President Obama -- Republicans and conservatives, or the Democrats and progressives who are, supposedly, his "base" (in the sense that they, uh, got him elected in the first place). It seems to me that if you more or less fall into the latter category, you've got a lot more reason to be annoyed with the president than if you belong to the former category.

What has gotten my mind twirling in this direction is a simply atrocious piece of legislation that is grinding its way to passage on Capitol Hill. It's called the Jump-Start Our Business Start-Ups Act, which the president has endorsed.

Like a lot of bad legislation its title is positively Orwellian. Honestly, folks, I just don't know where to begin, this bill is so bad. John Coffee, a prominent securities law professor at Columbia, has called it the "boiler room legalization act." That's because of its unbelievably naïve (at best) "crowd-funding" provision, which I dealt with in this column back in September.

Follow TheStreet on Twitter and become a fan on Facebook.

I love being ahead of the curve -- except at a time like this. That's because the White House's early endorsement of "crowd-funding" demonstrated that it was completely clueless on the subject of securities fraud. The "Jump-Start" act, erroneously referred to in the media as a "jobs bill," is actually just an underhanded way of rolling back investor protections.

"Crowd-funding," as I explained in September, is little more than a method of legalizing fraud in the private placement of securities. Though some of its advocates are well-intentioned, they are naïve because of the history of fraud in private placements, which are even more flagrant and prone to abuse than stock fraud because little or no public information is available on them.

"Crowd-funding" would allow private placements to be bought and sold on the Internet, like used Deep Purple CDs. The Jump-Start Act would carve "crowd-funding," and the private placement fraud that is certain to go with it, directly into the statute books.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.24 0.00%
FB $117.81 0.00%
GOOG $701.43 0.00%
TSLA $211.53 0.00%
YHOO $36.94 0.00%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs