Think before the JOBS act. No seriously

Dave Winer on JOBS act! I am with Dave. Tt is a hastily thought, politically motivated bill that doesn’t take into account the long term implications and issues. Chris Dixon seems to be raising a red flag as well.

“VCs and successful entrepreneurs promoting the JOBS Act, a bill with a confusing name…. It doesn’t seem to be about creating jobs, or that isn’t the reason the investors like it. What it does is make it easy for startups to sell their stock to the public.

Everyone knows that investments are risky propositions. You could win big or lose everything, or somewhere inbetween. And if you could guarantee that every investment was legit, there would be nothing wrong with it. But when you take all the regulations off public offerings, the same thing that happened in the unregulated financial services market in the lead-up to the crash of 2008, seems likely will happen in tech.

I assume the investors of 2012 who are pushing for this law are well-intentioned people who are just unaware of history, or optimists about human nature. But we’ve been through this before, very recently. We should not have to go through it again.

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