U.S. President Barack Obama signed the JOBS Act (Jumpstart Our Business Startups Act) into law yesterday (Thursday) - and just put more money in Wall Street's overflowing pockets.
The JOBS Act intends to help small businesses and startups raise money and ease the IPO process for "emerging growth companies." These are companies with less than $1 billion in annual revenue, issued no more than $1 billion in debt, floated no more than $700 million in stock, and have gone public within the past five years.
While the law is designed to create jobs and help business growth, the JOBS Act actually is giving Wall Street a new way to soak money out of investors looking for the next huge money-maker. It lightens regulation that was established to prevent firms from encouraging ill-suited investments for their own financial gain.
"This law is a perfect example of how corrupt our lawmakers are," said former hedge fund manager and Money Morning Capital Waves Strategist Shah Gilani. "They're blatant about making laws to benefit paying constituents who will use and abuse the public to line their pockets and those of Congress. The public should be outraged. This is one small step for entrepreneurs and one giant leap for fraudsters."