I don't know of many grandma's with savings accounts that are going to be able to put down the $2 mil for the GS FB Investment Vehicle. With a $2 million buy-in, it's hardly 'public' money, these guys are going to be solidly in the accredited investor space. Public disclosure laws are designed to protect unaccredited investors being fleeced by guys like GS.
Accredited investors are what GS is going after with this vehicle, not your grandma's savings account. (GS got that when they convinced the Fed to print money like it was going out of style)
Personally I find the current state of regulations for public companies to be overly onerous, and I think that the whole unaccredited investor 'protection' is a bit of a sham considering what the SEC allows to pass for a 'public' market where winners and losers are chosen by gov't officials with the interests of investment banks and campaign contributors at heart. (The unions made out pretty good when they convinced gov't of a bailout of GM & Chrysler)
You can say what you want about GS but seriously, the Fed did bail GS out with the whole AIG fiasco.
If you knew that the Fed would bail you out every time you made a bad investment why wouldn't you act like GS does?
If you were regulated by a gov't agency, wouldn't you want to put your guys in those board seats?
GS is not evil, they're just highly adapted to the current regulatory environment. What GS does is what any rational economic agent would do in the current regulatory environment. It's the politicians and voters who need to be called out for setting up such an easily gamed system.
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I don't know of many grandma's with savings accounts that are going to be able to put down the $2 mil for the GS FB Investment Vehicle. With a $2 million buy-in, it's hardly 'public' money, these guys are going to be solidly in the accredited investor space. Public disclosure laws are designed to protect unaccredited investors being fleeced by guys like GS.
Accredited investors are what GS is going after with this vehicle, not your grandma's savings account. (GS got that when they convinced the Fed to print money like it was going out of style)
Personally I find the current state of regulations for public companies to be overly onerous, and I think that the whole unaccredited investor 'protection' is a bit of a sham considering what the SEC allows to pass for a 'public' market where winners and losers are chosen by gov't officials with the interests of investment banks and campaign contributors at heart. (The unions made out pretty good when they convinced gov't of a bailout of GM & Chrysler)
You can say what you want about GS but seriously, the Fed did bail GS out with the whole AIG fiasco.
If you knew that the Fed would bail you out every time you made a bad investment why wouldn't you act like GS does?
If you were regulated by a gov't agency, wouldn't you want to put your guys in those board seats?
GS is not evil, they're just highly adapted to the current regulatory environment. What GS does is what any rational economic agent would do in the current regulatory environment. It's the politicians and voters who need to be called out for setting up such an easily gamed system.