[FoRK] Scary study on how lack of IPOs is harming US economy

Ken Ganshirt @ Yahoo ken_ganshirt at yahoo.ca
Mon Nov 9 09:03:07 PST 2009


http://blogs.zdnet.com/Foremski/?p=933&tag=nl.e539

November 6th, 2009 
Scary study on how lack of IPOs is harming US economy
Posted by Tom Foremski @ 3:16 pm

The lack of IPOs is certainly harming the Silicon Valley economy. With few IPOs, capital isn’t being returned into the VC funds, and the cycle of innovation is sputtering.

A new study describes the larger picture.

Grant Thornton, a large accounting firm, has published a study that shows the connection between IPOs and the health of the US economy.
...

The study claims the US has lost 22 million jobs because of the lack of new listings.
...

There is no doubt that the lack of IPOs is harming the economy. However, this study appears to be an excuse to drive large changes in regulations governing the stock market and investments.

This will be difficult to do given the current lack of trust in Wall Street and its enthusiasm to exploit any arbitrage opportunity no matter the cost to society.
...

It would be far better to leave the stock market and investor regulations in place and to focus on reforming Sarbanes-Oxley.

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