From Scott Powell, vice president of ELP Capital and a visiting fellow at the Hoover Institution, writing in IBD:
[…] why would the Obama administration say they want to regulate venture capital firms? Some suggest that it may be an end run in the undeclared war on wealth because venture capital can create enormous fortunes outside of taxable income. But there are several other plausible answers.
The first is that the Obama administration’s faux pas resulted from a lack of understanding the intricacies of the free market and conflating venture capital with Wall Street, banks and hedge funds. If job-creating venture capital is elusive to our current political leaders surely we are in deep trouble. How then can we trust their judgment on an ambitious restructuring of the national economy, which next targets 15% of U.S. gross domestic product in health care?
A second possibility is that venture capital needs to be constrained, lest its free-market reliance to pick winners and losers highlights the deficiencies of central planning and socialized sectors of the economy.
As the administration attempts to regulate decision-making in every industry in which it gets involved, price distortions and misallocation of resources will become glaring.
Venture capital needs no help from the government, except perhaps relief from bad laws like Section 404 of Sarbanes-Oxley — a regulation that disproportionately hurts VC-backed startups that can’t go public without huge operating cost increases.
In remaining silent about this, the administration tacitly favors big business while neglecting small-business capital formation.
The third and most plausible answer is the administration’s distrust of venture capitalists is simply an extension of its antipathy toward the free market. It suspects that venture capital seeks economic returns over political ends and will not direct enough funding to politically favored sectors — particularly after recent disappointments with clean-tech investments in fuel cells and ethanol. Regulating VCs is an indirect but very real means of forcing alignment with the political objectives of the administration.
[…]
In any case, U.S. recovery and progress is surely jeopardized if venture capitalists and entrepreneurs are diverted from economic to political calculation.
There is plenty of blame to go around for our current economic mess, with moral ambiguity and weak leadership from big business being increasingly acquiescent to the encroachment of the federal government.
Now is the time for entrepreneurs everywhere and those specifically in venture capital and Silicon Valley who delivered a disproportionately large Obama vote to speak up and demand some candor and accountability about all this.
Obama is either in clearly in over his head, or else he is working to undermine the foundations of the capitalist system from within in order to strengthen the centralized power of the state.
And yet as Powell intimates, even many of his erstwhile supporters — who make their living as venture capitalists — are either too afraid of the administration or too ashamed for having supported this disaster to step forward and declare their Savior wanting.
Ego. It isn’t just for waffles anymore.
Discuss.
(h/t Lamontyoubigdummy)
****
update: Break out your copy of Foucault’s Pendulum.
Where’s Norm McDonald these days, anyway…?
****
update 2: Break out The Crying of Lot 49, too, while you’re at it.
(h/t william)
Recent Fmac accounting violations and more – “rumors fly”
Norm McDonald? I’m pretty sure Don Ohlmeyer took care of him. And then O.J. still goes back to jail. Ohlmeyer just couldn’t catch a break.
On topic, I’m just glad I don’t have to do any analysis anymore. Has anyone come up with a handy formula to discount that day’s risk of the government destroying a sector on a whim?
Cool, two books on my “to read” list. They’re in the library and in the lineup. Thanks again for the suggestion, Jeff.
Normally I’d serve myself up a cool dish of Schendefreude and enjoy the show here seeing as how the whole VC/Silicon Valley crowd went overwhelmingly for this half-jackass. (NB to magicdogshit: you aren’t smart enough to figure out which half is the jackass.) But this is pretty serious.
Aw, what the hell…maybe just a small dish and I’ll skip the whipped cream.
Kudlow: “This is why I believe the era of democratic free-market capitalism is coming to an end. It is being replaced by state-directed corporatism on a grand scale. This is central planning that goes way beyond the American tradition.”
I can’t help but remember how Larry was just so taken and impressed with BHO when he broke bread over at George Denim Will’s house, before the inauguration of Our Dear Savior. Did Larry just get his eyes checked in the last few weeks? I’m struggling to understand how people as smart as Kudlow couldn’t see this coming from a light-year away.
We Await Silent Tristereo’s Empire, or something like that.
I choose option number one. it’s the way bubble headed, gull winged eared, filthy , envious, socialists think.
D.E.A.T.H
From Kudlow:
To which I reply, c’mon, dude, just say it already.
Come on Larry, can you say “Socialism”, yes, I know you can.
Obama is either in clearly in over his head, or else he is working to undermine the foundations of the capitalist system from within in order to strengthen the centralized power of the state.
Or both, as befits a career rabble-rouser.
We cannot have evil venture capitalists investing in ideas and people that might prove to be successful. It is far more important to force private dollars into the politically proper paths. Good Allah.
Get Larry K. some coffee, black.
“It’s not socialism because the government won’t actually own the means of production. It’s not fascism because America is a democracy, not a dictatorship, and Obama’s program doesn’t reach way down through all the sectors, but merely seeks to control certain troubled areas.”
Fascism doesn’t require a dictatorship. And given the primacy of the businesses that government is actually angling to own in large measure if not entirely I don’t think we can discount the term socialism here. Already federal and state gubmints spend over a third of GDP. Throw in the tight government control of medicine and health care (perhaps 15% of the entire economy), cap-and-trade affecting every business that uses energy (which is all of them), massive government subsidy for politically selected industries like wind farms (the sucking sound is GE wrapped around gubmint’s teat), and where are we?
It looks like a duck, sounds like a duck…
OBAMA IS MADE OF FAIL
This will be WAY worse than Jimmah
Having a self-admitted fondness of Kudlow since he and my aunt Hattie are dead ringers in looks and vocal inflection (Hattie has hair, though), I’ve watch him on CNBC over the last, say, 100 days and he seems utterly befuddled as to who Obama really is and what he is doing.
Obstreperous Infidel, see if you can find aconcordance when you start up on Foucault’s Pendulum the first time. I did and it helped a great deal.
C’mon people, the thought police are a small price to pay to stop that Palin hillbilly and those tea-party hicks. As long as the “self-styled” elites control it, we don’t care what the system is. Cause that way we know we’ll get what’s ours and the rest of you stupid rubes will get what’s coming to you.
Poor, poor righties. Haven’t realized that the game has changed, that they can’t just pull out the free-market sword and expect the government to run away. Now, they’re actually going to have to discuss the issue. Powell’s article was nothing but invective, and said nothing about the Obama administration’s ideas. If they want to rule themselves out of the process, then I’m sure there are others who’d be ever so happy to step in.
I’ve watch him on CNBC over the last, say, 100 days and he seems utterly befuddled as to who Obama really is and what he is doing.
Now, at least Cramer learned his lesson from the sage admonishments of the Daily Show’s witty and erudite raconteur. Cramer sits up and begs like a good lapdog now. Perhaps Larry hasn’t been swatted sternly enough. He doesn’t show the, uh, proper enthusiasm for Our Holy Leader’s project.
Vienna, Virginia. I’m just sayin’.
Look, the VCs can always relocate themselves to Hong Kong, right? Go Galt! We dare ya!
It’s corporatism, not socialism. But it still carries the stench of FAIL, still indicates an expansion of gubmint into the private sector, still promises to grind capitalism, innovation, and ingenuity under its jack-boot.
Who cares what it’s called? It’s still wrong, still un-American, still unconstitutional.
Magic Dog – Quit whacking your wanker and make a point. Do you think it is appropriate for Barcky to attempt to control venture capitalists? If yes, why? If no, congrats.
“Now, they’re actually going to have to discuss the issue.”
Yes, we’ve always avoided the issues. Hayek? She’s a chick with big boobs. Friedman? I think he runs Manny’s Deli in Chicago.
You’re out of your depth, Magic Dog.
Perhaps Larry hasn’t been swatted sternly enough. He doesn’t show the, uh, proper enthusiasm for Our Holy Leader’s project.
I suppose someone could always go back and dig up his cocaine addiction and alcoholism. But that would be wrong.
Now, they’re actually going to have to discuss the issue
What issue is that, MD? How has the game changed, and most important, how will it benefit YOU?
There’s a fine line between stupid and clever, and I can’t decide which side Magic Dog is on.
Is he a really clever parody of a leftist or is he really that stupid?
Do you think it is appropriate for Barcky to attempt to control venture capitalists? If yes, why?
Who says he’s trying to control the VCs? I’ve seen no proposal to “control” them. I haven’t even seen any details of regulating them. Maybe the right wingers could quiet the jerking of their knees long enough to address any specifics. Like I say, the worm has turned. “Just Say No” ain’t gonna cut it.
*Shadenfreude*, he meant.
It is that fuckin’ stoooopid, A fine scotch. Painfully and aggressively so.
Y’know Jeff, Dan Brown’s made an absolute pantload of money ripping off the dust jacket synopsis of that book. So if you ever want to totally sell out, I’m here baby. I eat pre-fab airport books like candy corn. We’ll make it Oprah’s pick for Michelle O’s favorite summer novel. Think about it.
It’s still wrong, still un-American, still unconstitutional.
Exactly what is wrong, un-American, and still unconstitutional? You sputter and splatter, but you really need to do something other than shout, “No Way!” or you don’t stand a chance.
So, you did not read the post or the links contained therein ?
Cocaine is only bad when capitalists do it.
Leftists these days are so self-parodying it’s really hard to tell, JD.
Wonder how Jeff’s going to update the “Instant Leftist Boilerplate” for the new Democratically controlled Legislative and Executive branches.
It is a feature, not a bug, when the Teh One does it, LMC.
magic dick mentioned discussing issues? Not just epic fail, but epic irony.
Blowhard, thanks. I’ll give it a try.
You suck at facetiousness as well, dogshit.
OT, but speaking of “a fine scotch”, I bought a 15 year old Balvenie. Wonderful stuff. Carry on.
And, I’m going to preemptively issue LTC John’s warning about engaging Typing Telephone Poles.
Teh Stoopid! is stuck on MD.
#18 – the same way IPOs left the US for London? That’ll show those dirty capilatlists!!11! Oh, about all that revenue the Feds and NY State and NYC lost…
#37 – urk… Should take m’ own advice, yes?
LTC John,
That’s what’s so annoying about the newest idiot. He makes what he thinks are facetious remarks, without realizing that they’re perfectly plausible. It’s impossible to argue with anything that thick; they’re just impervious to any argument that extends to consequences more than ten minutes out.
Who says he’s trying to control the VCs?
From the teaser ‘graph of the piece:
So, you did not read the post or the links contained therein ?
There was only one link, to an article that had nothing specific about what it opposed. Sorry, Angry Ones, but “Just Say No” ain’t going to cut it.
OT, but speaking of “a fine scotchâ€, I bought a 15 year old Balvenie. Wonderful stuff. Carry on.
The 12-year-old Doublewood, and the 21-year-old Port cask, are both better. But anything from Caol Ila, Oban, Springbank, or Clynelish is better. You know how we Democrats are about Scotch.
#40 – One can almost miss actus. Almost.
Nice. I’ve been meaning to break out some Pynchon lately. One of the underaraching themes in V I think was that when one attempts to place the reality in your mind, i.e. Utopian visions, onto society at large, an immense discord is inevitable and certain “corrections” need to be made (insert gulags here). Then again I was young and maybe stoned when I read that book.
Ooo but I think Umberto Eco was making a side commentary in that book that beliefs in Communism, via the idealistic young Italian communists running roughshod in Milan, is just as irrational as full fledged acceptance of the occult paradigm.
the same way IPOs left the US for London?
Oh, horseshit.
Why so much anger, though? It seems as though the right wing is just seething with Obama Derangement Syndrome these days. Now, kids, repeat after me: President Obama. President Obama. President Obama. Doesn’t that have a nice ring to it, though?!
#41 — Yeah, but who said that?! Who uttered those words?!
HE DEMANDS TO KNOW!!!
I split the verbal hair. I only care what it’s called because some words will make one sit up and take notice, and they do apply here. That there are fascistic elements in these events is undeniable, and when someone like Kudlow wants to parse it into “state capitalism” or “corporatism,” that sounds rather nebulous and neutral. At least as poorly defined as Larry’s preferred phraseology.
These legal and structural changes led into the second phase, the corporative phase… The (legislative resolution) confirmed the importance of private initiative in organising the economy, while still reserving the right for state intervention – most notably in the supposedly complete… control of worker hiring… (The various czars’ function in the cabinet) was established, it was for representatives of all levels of the twenty-two key elements of the economy to meet and resolve problems. In practice it was an enormous bureaucracy of committees, that while consolidating the potential powers of the state resulted in a cumbersome and inefficient system of patronage and obstructionism…
Government intervention in industry was very uneven, large programs started but with little over-arching direction. Intervention began with the (TARP program and stimulus bill in 2008-2009) when the government intervened following the (arrival of recession) to subsidise domestic growers and limit foreign imports by increasing taxes. This reduced competition and created, or sustained, widespread inefficiencies. According to historian Denis Mack Smith, “Success in this battle was… another illusory propaganda victory won at the expense of the (American) economy in general and consumers in particular” and “Those who gained were the owners of the (financial sectors) and the propertied classes in general… his policy conferred a heavy subsidy on the (financial sectors)”.
That was a cheat, but not by much. That was taken from the frequently left wing Wikipedia, the article “Economy of Italy under Fascism, 1922–1943.” I wanted to isolate some features of Italian Fascism that sound very close to what is going on now. I’ve merely replaced references to Italy, dates, and certain types of industry. Now, I fully grant some key features of Fascist Italy are lacking, like the suppression of labor unions. But with the Wagner Act and the Taft-Hartley Act, the position of labor unions in this country bears some resemblance to European socialism. More so if card check passes.
In short, what is happening now simultaneously features aspects of both socialism and fascism, and neither one will serve us well.
Yeah, this is just a figment of our imagination. From the transcript:
So, for the first time in recorded history, VC funds are now to be in the same category as hedge funds.
Admit it, Magic Dog. You’re talking out your ass because you’re not particularly well-informed. But your feelings! They matter! Because you feel so strongly!
Obviously you’re not even bright enough to discern the difference between anger and scorn, dogface.
Exactly what is wrong, un-American, and still unconstitutional?
* It’s wrong because the government doesn’t have the foggiest notion of how to regulate them, nor will they ever. Just look at the banks the feds regulate…their almost all insolvent. Think Geithner, who watched Citi turn to shit and did nothing, will have the foggiest notion of the much more complex venture capital field?
* It’s un-American because America’s central idea is liberty, and putting politicians and their unelected lackeys in charge of where venture capital goes is the antithesis of liberty.
* I’m not sure it’s unconstitutional, but it’s very possible insofar as the only nexus that might be grasped is interstate commerce, and that’s a very thin reed upon which to hang so heavy a task.
In the interest of fair argumantation, it should be pointed out that there is a very, very large industry that has been jonesin’ for hedge funds, if not necessarily VC funds, to be regulated for a very, very long time: Mutual Funds.
Gah….”they’re”
This has fuck all to do with Silicon Valley. It’s a huge grasp.
Venture capitalists invest in tones of small business enterprises. Two of mine in particular.
Ever want to own anything? A small commercial building? A small apartment complex? A frigging shoe store? Anything?
VC guys are your best friends. Your only friends.
If you still consider this “The Land of Opportunity” then this shit is flat out insane.
Period.
Good point, Lamont.
But Jeffersonian, what is the “it?” You people never say what the “it” is. Yeah, we know you’re pissed off that President Obama was elected, and that Democrats control Congress, and that our side will have 60+ in the Senate before too long. Nothing wrong, unAmerican, unconstitutional about that. The people have spoken, and they’re going to keep speaking.
So, if you’ve got your panties in a twist about the election trend, tough shit. If you’re pissed about something else, then it’d probably be best to state your case. Teabagging doesn’t cut it. In fact, all that one did is rendered you as an obscene joke. The wingers had better get specific, and they’d better figure out something to be FOR.
On second thought, no. Keep doing what you’re doing. Hell, you know you will. Look at what’s happening to the Republicans. The wheels are coming off the whole wagon. What a joke.
“This has fuck all to do with Silicon Valley. It’s a huge grasp.
Venture capitalists invest in tones of small business enterprises.”
Yep.
VC guys are your best friends. Your only friends.
You think VCs are your friends? And you call ME flat-out insane? Hoo boy!
Lamont, a fine comment. I see Powell’s second and third possibilities as functionally identical, BTW, and clearly the frontrunners in the speculation game. Obama is a marxist planner, and needs the tools to implement his plans. Bullying VCs and other large investors is perfect for funding The One’s schemes.
#43 LTC John
Thought the exact same thing.
I kinda liked having MD (and Gordo) around in the first few threads; they were just entertaining enough without being profane in the thor way. They was the ball of yarn and the commenters were the cats. But there’s only so much entertainment in watching cats beat balls of yarn.
Now, however, MD’s so oblivious to his own thickness, I’m almost positive a black hole of stupidity is going to open up soon in his head. And, I’m afraid the good commenters here will be sucked in.
But Jeffersonian, what is the “it?â€
“It” is the topic at hand, bright boy: The Peronist grab for venture capital.
#52
I thought I saw something earlier today about Fidelity wanting something from the Badministration. Anyone else catch that?
limited government.
You think VCs are your friends? And you call ME flat-out insane? Hoo boy!
And where is a guy with a good idea supposed to get funding for said idea if not a VC? We saw recently how seriously the federal government takes valid private contracts (AIG). Do you think the political class is preferable?
Related interview.
I thought I saw something earlier today about Fidelity wanting something from the Badministration. Anyone else catch that?
Yes, they’ve been sending piles of cash to Barney Frank as of late.
The joke’s on you, MD. If you weren’t so intoxicated by the smell of your own ass, you’d make the effort to poke around this blog for evidence of Jeff or his regulars to be simpatico with Republicans. If you weren’t such an inveterate blowhard, you’d have discovered by now there is little to no evidence of that.
But keep pushing the notion that one party domination is good for the country and you’ll further the rather obvious notion that you’re a fascist.
blowhard, is that what you people are up in arms about? Really?! Good God, how stupid. If that’s what Geithner’s “regulation of VCs” is all about, then the Republicans ought to hop on board as a way of showing that they’re not against everything.
Look, dummies, there’d only be a couple VCs — if that — who’d be big enough to qualify as stability-threatening. 99.999% of the funds would be too small. What Geither is doing is trying to be sure that capital doesn’t flow to an unregulated sector, and that VCs don’t wind up becoming de facto hedge funds. The administration doesn’t want to regulate traditional VC investments. They want to make sure that you don’t push toxic crap into different places.
If your “capitalist” friends hadn’t so royally fucked up the financial system and the economy, there wouldn’t be any need for this. But they did, so there is. All Geither is saying is that the government wants the VCs to do what VCs have always been there to do. If that really is what they’re up in arms about, then the opposition is purely pro-forma, self-defeating wingnut crap of the kind that makes you look like the fools that you are.
I’d ordinarily say something like, “unbelievable,” but after watching your side at work over the last six or eight years it’s all too believable.
And where is a guy with a good idea supposed to get funding for said idea if not a VC? We saw recently how seriously the federal government takes valid private contracts (AIG). Do you think the political class is preferable?
Does anyone here actually know a single thing about how the vulture capital funds work? Come on, is there one person here with any real experience in that field? Not from something you read in an article in the American Spectator, but from actual personal involvement?
No. I think they’re free people who deserve to not be subject to the whims of unelected, unaccountable bureaucrats. Friendship doesn’t enter into it.
It’s kinda sad that some people think you only keep government’s boot off your friends.
Does anyone here know the difference between a VC and a hedge fund? Does anyone know the difference between a hedge fund and a mutual fund? Or are you all just a bunch of Dartmouth children who are blogging instead of studying for finals?
Anybody ready for him to go yet? He’s a one trick pony, this Magic Dog, and he’s not even a thoroughbred.
do you read other people’s posts or do you just bloviate?
What the fuck did you think we were talking about, idiot?
And, frankly, as you were just ignorant of the topic’s very existence a couple minutes ago, it’s beyond laughable that you’ll now pretend to explain the issue to me. I understand the issue. You clearly don’t.
Jeffy, are you going to block me now? Come on, go ahead. It’s what wingers do when they’re losing the argument.
i think md is a one trick ferret but that’s just me.
fun cartoon from the thirties stalin makes an appearance
here
Come on, go ahead. It’s what wingers do when they’re losing the argument.
Projection.
what was your argument again?
blowhard, I’ve worked with mutual funds, hedge guys, and VCs. I know them well. I noticed Geithner’s regulatory proposal but saw no specifics. I figured I’d wait a while until more details emerged. I wasn’t aware, until now, that those are the details that have the wingers up in arms. It’s phenomenal, though. All I can tell you is that you folks are going to learn some harsh lessons.
Jeffy, are you going to block me now? Come on, go ahead. It’s what wingers do when they’re losing the argument.
You’re not even making an argument. You’re just anot very bright guy who thinks he’s actually goofing on a bunch of people who are a lot smarter than you are. That you’ve lasted this long is a function of our finding you mildly entertaining.
“Does anyone here know the difference between a VC and a hedge fund? Does anyone know the difference between a hedge fund and a mutual fund?”
What’s so funny is that you think you’re asking real stumpers.
I’ve studied under multiple Nobel Prize winners and then worked on LaSalle for over a decade. Want to compare experience? You wouldn’t even know how to fake it.
WTF? Do you know how idiotic you’re making yourself look, you sanctimonious tool? I know damn well how Venture Capital funds work. Firsthand.
Oops, apparently you aren’t aware how stupid you look. Unfettered “capitalism” had little to do with this mess, nimrod. Government intervention and distortion fucked this thing up and continues keep it from correcting, you fascist little weasel.
With that, Trollhammer. Thanks again SBP.
Lost My Cookies: So if you ever want to totally sell out, I’m here baby.
That’s what pseudonyms are for, yo.
But Jeffersonian, what is the “it?†You people never say what the “it†is. Yeah, we know you’re pissed off that President Obama was elected, and that Democrats control Congress, and that our side will have 60+ in the Senate before too long. Nothing wrong, unAmerican, unconstitutional about that. The people have spoken, and they’re going to keep speaking.
It’s perfectly possible for a duly-elected Congress to make laws that overstep the limits spelled out in the Constitution, and it’s perfectly possible for a duly-elected Executive to sign off and enforce those laws. Policies that double the size and scope of the federal government every six months are neither Constitutional nor sustainable.
You’d think a Nobel-trained mind could grasp this, but then again, stupid seems to have no Constitutional constraints.
Fetching their lattes doesn’t count, fascist. Oh, and Vulture Capital and Venture Capital are not synonomous, tool.
And yes, Jeff, I’m done with him. He’s like a boil that needs lancing. Damn.
blowhard, I’ve worked with mutual funds, hedge guys, and VCs. I know them well. I noticed Geithner’s regulatory proposal but saw no specifics. I figured I’d wait a while until more details emerged. I wasn’t aware, until now, that those are the details that have the wingers up in arms.
I don’t suspect that the details, once they emerge, will say “and we’ll use our self-granted regulatory authority to steer investment into the projects of political allies and bottomless boondoggles dreamt up in DC,” but that’s the legacy of so much that comes out of that city. Or do you need a reminder of how the CRA was used to create this most recent bubble that plagues us now?
Other than being personally involved as a tech consultant in three startups (two of which failed), and personal friends at the drinking-buddy level with at least one VC’s rep?
There are others here with even more direct involvement who post here. Consult Victor Borge about the definition of the word “assume”.
Regards,
Ric
Actually, I’m doing it because you haven’t made an argument 40 comments or so in today. Plus, you’ve taken to calling me “Jeffy,” which is rude when you’re a guest on my site.
You’re eating at my bandwidth, and this ain’t a commune. You may now blow me.
kelly, even the VCs will call themselves vulture capitalists. They’re kind of infamous. I guess you didn’t know. I suspect there’s a whole lot more you didn’t know. Children, VCs do direct investments, usually at early stages. Hedge funds invest in secondary vehicles, i.e., securities of various kinds. They can go long and short. Occasionally they’ll buy physical assets, i.e., gold or real estate. But they do not generally take direct stakes in companies in the way that VCs do. Mutual funds take money from the general public and invest according to a published charter that specifies their area.
From a quick read of Geithner’s proposal, he wants to be sure you don’t have VCs branching into the trading of secondary vehicles in the manner of hedge funds without government knowledge and (if they get big enough) oversight.
Oh and Kelly, government oversight didn’t cause the financial collapse. That was buccaneer capitalism of the same sort that caused your grandfather’s depression. Same deal, different financial instruments. It was the lack of oversight that allowed this to happen. And it will get re-regulated. If the players are going to act like spoiled kids, then they’ll be sent to their rooms without supper while dad makes the rules. It’s really that simple.
Can hand it out but can’t take it.
What is “it,” MD?
Yep. Authoritarian fascism in a nutshell. Nothing you own will be yours to decide upon.
Oh well, it was getting pedantic anyway. Like the guy who lectures you on the details of Formula 1 racing he’s learned working at Jiffy Lube.
just ask bwarney frank, chris dodd, and maxine waters
Dad is the State.
Just like the founders wanted it.
“You think VCs are your friends? And you call ME flat-out insane? Hoo boy!”
When you move out of your parents’ basement, you’ll understand.
Who am I kidding. You’ll never move out of your parents basement.
Lookit…when your parents grow old and kick off, and you then have to pay their mortgage, you’ll get a small glimpse into the magical world of something we all call “responsibility.”
Ya know. Its… THE WORLD THE FUCKING REST OF US ALL LIVE IN!
And should you then desire to attain any sort of wealth or asset (thereby creating jobs in the process) in the fucking hopes of bettering you and your (possibly retarded) wife and kids lives, you better FUCKING UNDERSTAND that VCs are the only ones that can pony up the initial capital to get you FUCKING STARTED.
You insufferable daft bastard.
Did you even make it through Economics 101?
Jesus wept.
That kind of astute financial acumen is why I come to Protein Wisdom.
ot hugh hewitt is interview spengler from aisa times in the 4:00pm pdst hour of his show
And should you then desire to attain any sort of wealth or asset (thereby creating jobs in the process) in the fucking hopes of bettering you and your (possibly retarded) wife and kids lives, you better FUCKING UNDERSTAND that VCs are the only ones that can pony up the initial capital to get you FUCKING STARTED.
Well, them and now Chairman Obamao. Just as long as your project is green. And hires his pals. Oh, and gives a nice campaign donation. And is fully unionized. Paid family, medical and campaign time off for the union guys will get you on the short list. And locate in the right area.
Just that. Right before you go out of business.
The wingers had better get specific, and they’d better figure out something to be FOR.
The Tenth Amendment
Federalism
The Tenth Amendment
Reduction in the scope of government
Enforcement of the Tenth Amendment
Enforcement of the Second Amendment
Judicial restraint
Reduction in taxes and government spending
Individualism
Individualism
Individualism
Liberty
Oh, and the Tenth Amendment
We’re FOR plenty of things, maddog, you just can’t tell what they are even when we spell them out. It’s like the deaf guy and the blind guy. The deaf guy is gesticulating wildly, and the blind guy keeps saying, “neener, neener, you can’t talk!”
BECAUSE OF THE SENSITIVITY!
If your “capitalist†friends hadn’t so royally fucked up the financial system and the economy, there wouldn’t be any need for this.
If your “affordable housing” friends hadn’t created the gaping maw of a moral hazard by guaranteeing bad loans, there wouldn’t be any need for this. If you knew anything about economics, you’d know that.
But you obviously don’t. No one who understands even the least thing about economics is a lefty, unless they believe that they’re entitled to rule over other people because they’re so much smarter than everyone else.
And a square is also a rectangle, kids!
Listen, Mad Dog. You don’t have any fucking idea what I do for a living nor how long I’ve been at it. Don’t fucking lecture me on the Venture Capital, Hedge Funds, Mutual Funds, Long/Short, Muni Arbitrage Funds, Distressed Assets, Absolute Return Funds, Global Macro or anything else, you sanctimonious boor.
But I’ll give you this, “government oversight didn’t cause the financial collapse.” Because there was no oversight at Fannie/Freddie, cretin. Frank, Dodd, and Schumer saw to that.
Run program
“Oh, now what do you wingers/righties/children have your panties in a bunch over?”
“I don’t see any evidence of that.”
“Well if Bush/Reagan/Capitalist hadn’t ________ the _____ in ____ we wouldn’t be having problems with ______.”
“I bet none of you have any experience with _________.”
“Oh, so I win the argument again! Hah, reichers/rethugs/puglicans suck.”
Loop
I’m done with him too, Jeff.
He’s just here to jeer, not to discuss or even argue. He makes the Argument Clinic sketch look like the Lincoln Douglas debates.
“Well, them and now Chairman Obamao. Just as long as your project is green. And hires his pals. Oh, and gives a nice campaign donation. And is fully unionized. Paid family, medical and campaign time off for the union guys will get you on the short list. And locate in the right area.”
I bow to no man.
Plus I live in a “right to work, unions can go screw” state.
Also, my Governor just reminded Unicorn riding-silly-socialist-jesus-McTeleprompter that we can bug out, shoot the collective finger, and go our own whenever the fuck we feel like it.
God I love Texas.
magic dog killed off the fannie mae guy
He makes the Argument Clinic sketch look like the Lincoln Douglas debates.
No he doesn’t.
The dirty socialists are still rabid about getting their hands on personal retirement savings… these are some sick twists what got elected in our little country.
hmm
rabid
Mr Dog is gone? I felt I never really knew him.
“I noticed Geithner’s regulatory proposal but saw no specifics. I figured I’d wait a while until more details emerged. I wasn’t aware, until now, that those are the details that have the wingers up in arms. It’s phenomenal, though. All I can tell you is that you folks are going to learn some harsh lessons.”
So, if a guy threatens to shoot you, you suggest we wait around until he decides which firearm he’ll use. Brilliant. You’re right about the lessons, but it won’t just be us “wingers,” it’ll be all of us Americans who are in for a harsh schoolin’. Will you be able to appreciate the irony in the soup line? I wonder.
So, how about all those criminal investigations around the TARP program?
Looks to me like the real beef Democrats had with a “culture of corruption” was that they didn’t like competition.
Rob Crawford – Precisely.
And, ya know, I’m not entirely sure that’s not what their power grab is all about. The more power government has, the more incentive there is to bribe people in government.
So are they after power for the power, or after power for the graft? Or is it just safer to assume they’re in it for both?
When everything is bought and sold by legislation, the first thing bought and sold is the legislator.
oh i think the obama(pbuh) has the chicago model in mind. i mean the annenburg challenge(spend alot of other people’s money) and the chitown machine is all this mulatto knows.
“The 12-year-old Doublewood, and the 21-year-old Port cask, are both better. But anything from Caol Ila, Oban, Springbank, or Clynelish is better. You know how we Democrats are about Scotch.”
Now I know MD is defective. You just can’t say resoundingly that one scotch IS better than another, unless your name is Michael Jackson or Dave Broom. It’s subjective you fucking wanker. And I happen to agree with you in regards to the doublewood and port being better than the 15 year old Balvenie. But Clynelish? I guess there’s no accounting for taste. As for the democrats and scotch thing? I think you’re living in a world you know very little about.
Magic Dog likes Dirty Sanchez’s with Michael Moore.
I think that dirty socialists get their hands on way too much of the monies you pay for scotch and other beverages of a similar nature. This troubles me.
Happy the dirty socialists love our money. Unemployment benefits now go for an entire year and pay around 360 a week which is more than minimum wage. So why get a job just live off the benefits we all pay for? They can buy a shit load of Obama bumper stickers with that money while he figures out how to take our money to pay for their mortgages.
i like that O! was manning a sickle on lenin’s birthday
Check this bumpersticker out router.
http://www.zazzle.com/anti_obama_bumpersticker_douche-128821439798493453
Unemployment benefits now go for an entire year
26 weeks, akshully
One NY Times reporter described the empathy for Sulzberger and the antipathy toward Robinson as follows: “Arthur [and his family] own the paper, but no one expects him to be a businessman. Janet was hired to be the CEO, she should know [how to run the business].” How Randian.
“live tea or die ” avoid mindless leftists attacks on your vehicle.
oh no another janet god save us from janets
To answer the question in the title, BECAUSE OF THE CAPITALISM.
Sorry if that has already been done above.
I wonder if I should put collecting unemployment on mah bucket list. Maybe I put an asterisk what says it has to be California unemployment. I wouldn’t do that to Texas on purpose. That would be ungrateful.
I suspect I agree with you. This post is terribly written. Please write it again so that people can understand it. This is too important to get tossed into a fanatics file because it sounds like it was written by a fanatic.
the whole VC/Silicon Valley crowd went overwhelmingly for this half-jackass
Nope, just the ones who like to get their names in the paper. The political groupies are definitely in the minority here in the valley; most of us have better things to do.
How government is set to kill off Silicon Valley permanently.
[…] Goldstein asks, “Why Is Venture Capital Under Assault?†and concludes, “Obama is either in clearly in over his head, or else he is working to […]
It is amazing that people like Magic dog can not grasp that sooner or later they will be the ones out of power and all the crap they are pulling today will be revisited on their heads at that time. that is why presidents do not go after ex-presidents (except Obama) because they will be an ex in 4 or 8 years and then the new leaders will put that ex president on the stand. same goes for Congress ect.
the consitution was written to stop the majority from abusing the minority. It seems like liberals are aligned with other marxists. they believe you have one vote one time and then after that you do not get another vote. From listening to them it would seem they truely believe that they will never ever lose a vote again. that because 7% of the Americian people were connec and thought they were voting for a tax CUTTER and a fiscal conservative that people changed the way they thought. ther Americian experience has always been a fear of gov. that hasn’t changed. In fact BHO poll numbers continue to slide. He is liked less today than Bush was in his first term at the same time. 2010 will be the year the dems hit a wall. That is if we have fair elections. which with Acorn getting billions and the WH playing with the census I highly doubt. Look for a major population increase in states like NY, CA and a decrease in states like TX, OK as the dems try to stack the deck in blue states.
There would be incentive for the states which are willing to assert their 10th amendment rights (like Perry & maybe Sanford) to say f*ck off to this regulation and tell venture capitalists: Come here, we’ll protect you & you will help us become rich by attracting business. Maybe they could work some dodge where the VCs can be technically based in TX but lend anywhere. Like Delaware being the cheap easy incorporation state.
I lived in Austin in the 90s and it did have the Silicon Valley culture, but smaller. if SV is smothered maybe people would migrate to TX as well as Asia. Maybe TX could give foreign techies some kind of exception rider on their US visa.
I would love to hear from those on this list who are experienced with this stuff.
And if the US startup culture is moribund, and the Iran problem is solved …. Israel has more tech start-ups per capita than any other nation including the US. Netanyahu understands capitalism and somewhat reformed the sludgy israel bureaucracy when he was finance minister. it’s still an oppressive bureacracy but it is friendly enough to startups that there are lots of them. the tech sector is mostly Anglosphere & speaks English, and 3/4 of the population speaks English. Intel & some other big corps have plants there, you got Hebrew U and the Technion in Haifa and lots of Russian techie immigrants as well as Anglos & native Israelis. You don’t have to be Jewish to be Israeli, it’s just that if you ARE jewish your citizenship is immediate & you get $ from the govt to help you transition. And it’s a beautiful country and much of it is very Californian in climate and Israelis are cool.
(I don’t live there by the way and am not a citizen, but being in the Jewish world Israeli immigration is background noise in my life. I’m there now but going home next week.)
now Google are advisers to Obama – can they influence him or them being so big do you think they want to squash competition? i wouldn’t think so since most of Silicon Valley has nothing to do wth search engines. I have thought for the last 100 days that the SV young techies who thought BHO was cool and Web 2.0-savvy might be having second thoughts. i hope so anyway.
Money goes where it is best treated. Old and trite, but still true. Bye, bye, money.
Look at Jeff Immelt of GE as exhibit “A” of a big business plutocrat who is comfortable shacking up with the government. “…we can buy your level of incompetence for a hell of a lot less”
http://moneyrunner.blogspot.com/2009/04/we-can-buy-your-level-of-incompetence.html
[…] Posted on April 23, 2009 by Herself From Jeff G. (Protein Wisdom, <i“Why Is Venture Capital Under Assault?, April 22, 2009): Obama is either in clearly in over his head, or else he is working to undermine […]
I found this tid bit on CBS news:
“Freddie Mac canceled a bond offering on Wednesday[…]”
There is no question that this bond-offering would have floated like a lead balloon, and that Kellerman knew this. At this point, any honest man would have only terrible options to face.
1. Sell out Barney, Dodd, Raines, Gorelick et al., and pin the financial collapse firmly on their concerted corruption of lending standards.
2. Paint a smile on your face, demand a raise, hire a Paraguayan accountant and continue to ‘front’ for the charade.
3. Find a way out, any way out.
I’m reminded of the horror film, Saw. Sometimes there is no easy way out.
Now we know what they do when they’re not on the internet.
[…] More here. […]
Obama is systematically destroying this country. Every single action of his points only in one direction…
Ever notice how it’s all about the boot grinding a human face forever with these people? When we’re on top we like to create an environment where people can live their lives and pursue their happiness. Mind you we have to use crapweasel politicians that often let us down to try and wrest our liberties from the government. But the rank and file on our side is pretty decent. The other side however is quite content to burn it all down as long as we’re taught a lesson.
Mad Dog at #90.
You didn’t tell me anything I didn’t already know and I consider myself rather uneducated in these matters.
As for the financial crisis it wasn’t simply a matter of over or under regulation. It was largely a matter of the regulators making possibly the worst choices of what to enforce and what to ignore. Incompetence? Corruption? Malice? All of the above? Does it really matter? No sane person would trust these people with even more power and we’re not insane.
LTC John, Exhibit the next in disproving MadDog 20/20’s “argument” that businesses aren’t leaving because of O!: all of the major oil exploration firms HQed in Houston TX have announced they are relocating their corporate offices / HQ to places like Switzerland and Dubai because they believe the One is serious about destroying their industry thru regulation. I suspect this is a factor in Gov Perry’s 10th Amendment and secession talk.
Until we manage that, remember: they still have to be able to prosecute, and as long as you can put yourself on the jury and vote to acquit on bad laws, that can make a difference.
all of the major oil exploration firms HQed in Houston TX have announced they are relocating their corporate offices / HQ to places like Switzerland and Dubai because they believe the One is serious about destroying their industry thru regulation.
bye, bye money.
What do I think this means? CRA type regulation for venture capital. Because, you know – social capital is important too.
Oh, Jeff, there’s another excuse for an argument with Patterico, who doesn’t believe in jury nullification even to stop insanely bad laws from being enforced.
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me and my friends have been into venture capital investments and so far the income is great.,”-
Venture Capital is always risky but if market research had been done correctly, you will earn a lot.,;
venture capital is quite risky but the returns are great if you succeed,`.
venture capital is a risky business but the returns are great if you know how to invest properly`’.