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Guest Post: Let Them Eat Trinkets

Tyler Durden's picture


Originally posted at Coyote Blog,

Steven Rattner, investment banker and former member of the Obama Administration,  is terrified that under a proposed law companies will be able to raise money without investment bankers.

Most troublesome is the legalization of “crowd funding,” the ability of start-up companies to raise capital from small investors on the Internet. While such lightly regulated capital raising has existed for years, until now, “investors” could receive only trinkets and other items of small value, similar to the way public television raises funds. As soon as regulations required to implement the new rules are completed, people who invest money in start-ups through sites similar to Kickstarter will be able to receive a financial interest in the soliciting company, much like buying shares on the stock exchange. But the enterprises soliciting these funds will hardly be big corporations like Wal-Mart or Exxon; they will be small start-ups with no track records.

This is absolutely, classically representative of the technocratic arrogance of the Obama Administration and the investment bankers that inhabit it.  I have three quick thoughts:

  1. Rattner's concern for individual investors comes rather late.  After all, he was the primary architect of the extra-legal screwing of GM and Chrysler secured creditors in favor of the UAW and other Obama supporters.
  2. God forbid investors get actual, you know, ownership in a company for their capital rather than just trinkets.  This is so bizarrely patronizing that I had to read it twice just to make sure I wasn't missing something.  But no, he is explicitly preferring that you and I get trinkets rather than ownership  (ownership, apparently, to be reserved for millionaire insiders like himself).
  3. We have truly entered the corporate state when leftish opinion makers argue that large corporations like Exxon and Wal-Mart get preferential access to capital and that smaller startups that might compete with them be shut out of the market.

I would predict that over time, Internet entrepreneurs running such crowd-sourcing sites would develop reputation management and review tools for investors (similar to those at Amazon and eBay).  Over time, it may be that these become far more trustworthy than current credit agency reports or investment bank recommendations.  After all, which do you trust more -- a 5-star Amazon review with 35 responses or a Goldman Sachs "buy" recommendation on an IPO like Facebook or Groupon?  Besides, it would take a very long time, like eternity, for fraud losses in a crowd-sourcing site to equal 1/100 of the investor losses to heavily regulated Bernie Madoff.


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Wed, 03/06/2013 - 14:03 | 3305327 fuu
fuu's picture

Fuck you Rattner!

Wed, 03/06/2013 - 14:06 | 3305340 redpill
redpill's picture

OT: Rand Paul is in the midst of an old school filibuster of John Brennan's nomination (and by proxy our drone policy), he's a couple hours in already.

Wed, 03/06/2013 - 14:10 | 3305357 Tijuana Donkey Show
Tijuana Donkey Show's picture

Long Red Bull!

Wed, 03/06/2013 - 14:20 | 3305398 NotApplicable
NotApplicable's picture

What? Unregulated capital formation?

Seal the exits, STAT!

Wed, 03/06/2013 - 14:30 | 3305436 Zer0head
Zer0head's picture
What It Means to Manage the Mayor’s Money

“Steve Rattner’s my friend, of course I’d keep him on. Why would you not? If he can do anything to help, I value his advice and he’s a close friend of mine, and you stick by your friends.”

Wed, 03/06/2013 - 14:35 | 3305466 Say What Again
Say What Again's picture

Ratner was re-gifting the trinkets for christmas and birthdays.  He's pissed off that he now has to spend his own money to get said trinkets.

Wed, 03/06/2013 - 15:07 | 3305584 DblAjent
DblAjent's picture

What is troublesome to RATner is perfectly logical and righteous to me.

Should I have my head examined?

Wed, 03/06/2013 - 17:44 | 3306251 Ignatius
Ignatius's picture

The issue raised in this article really goes to the meat and potatoes of the struggle, does it not?

Privilege trying to hold on to same.  "Same as it ever was...."

Wed, 03/06/2013 - 14:15 | 3305362 toxic8
toxic8's picture

watching now...


"Everyone on 9/11 got medals"


^ a good point but missing the big picture. Amazes me how 10 years later they still talk about 9/11 without raising a single significant question

Wed, 03/06/2013 - 14:14 | 3305373 otto skorzeny
otto skorzeny's picture

then it's off to a kosher lunch for Rand with an AIPAC handler

Wed, 03/06/2013 - 14:15 | 3305375 machineh
machineh's picture

History in the making.


Wed, 03/06/2013 - 14:28 | 3305430 Confundido
Confundido's picture

Thanks for the update.

Wed, 03/06/2013 - 14:31 | 3305442 Spastica Rex
Spastica Rex's picture

Drone is right.

Wed, 03/06/2013 - 14:37 | 3305475 NotApplicable
NotApplicable's picture

Our drone policy?

Dunno 'bout you, but mine is fairly benign.

"Don't drone me, bro!"

Wed, 03/06/2013 - 14:07 | 3305347 TruthInSunshine
TruthInSunshine's picture

Pelosi, Reid, SCHUMER, MAX BAUCUS...they'll defeat this....they and their families get a comfortable life through guaranteeing that the fucking parasites on Wall Street get their pound of flesh and pint of blood come hell or high water, bitchez.

Wed, 03/06/2013 - 14:47 | 3305511 ZerOhead
ZerOhead's picture

Sometimes they even interbreed...

Facing up to fame: Ms Clinton sparked a media storm when she married investment banker Mark Mezvinsky in 2010, in a lavish ceremony believed to have cost $3million

Read more:
Follow us: @MailOnline on Twitter | DailyMail on Facebook
Wed, 03/06/2013 - 14:53 | 3305533 css1971
css1971's picture

Why do Americans believe the American Empire does not have an aristocracy?

Wed, 03/06/2013 - 15:04 | 3305565 ZerOhead
ZerOhead's picture

It gets worse... read on...

Chelsea also admitted - for the first time - that she would not rule out running for office herself.

'Before my mom's campaign I would have said no. And now I don’t know,' she said.

Read more:
Follow us: @MailOnline on Twitter | DailyMail on Facebook

As if four Bush family campaigns and three Clinton family campaigns for the Whitehouse weren't bad enough for the U.S. ...

Wed, 03/06/2013 - 15:39 | 3305730 Kirk2NCC1701
Kirk2NCC1701's picture

Saw that one coming when Hil' dragged her onto podiums in the 2008 election.  Told my wife:  "Mark my words, she's being prepped & groomed for 8-12 years out, starting with a run at the Senate.  After she gets married to an Elite member and has a kid or two.  Of course the Bush/Arbusto clan will position Jeb for 2106, by which time the 'Bush' brand will have been refreshed and repackaged:  I'm not like George.  I'm a Moderate Republican...". 

Some things never change.

Wed, 03/06/2013 - 18:33 | 3306425 CPL
CPL's picture


lol, In 10 years there won't be a government elect in any central capacity in the US.


There are much bigger changes happening now that people are starting to acknowledge but it's far to late because of pussy footing.



Wed, 03/06/2013 - 15:00 | 3305535 flacon
flacon's picture

"Chelsea Clinton has spoken publicly for for the first time about her marriage - giving her mother the 'grandchildren she has always wanted', and following her parents into politics."


Sexist, ego-centric little bitch. "Giving her MOTHER the grandchildren she has ALWAYS WANTED." What a pile of shit. She has a intern-fucking FATHER too! And what is it with getting pregnant in order to please your parents with another soul? I pity this poor baby. Can you imagine having HiLIARy Clinton as your grandmother?! "Give grandma a kiss!" UGH!

Wed, 03/06/2013 - 15:08 | 3305582 ZerOhead
ZerOhead's picture

If I were the unlucky baby it would be awful enough to make me upchuck into my little mouth...

Wed, 03/06/2013 - 16:11 | 3305881 Umh
Wed, 03/06/2013 - 18:44 | 3306482 August
August's picture

"Ms Clinton sparked a media storm when she married investment banker Mark Mezvinsky in 2010, in a lavish ceremony believed to have cost $3million."

Well, it's just as easy to fall in love with a rich boy as with a poor boy.

Wed, 03/06/2013 - 14:13 | 3305360 aint no fortuna...
aint no fortunate son's picture

"But the enterprises soliciting these funds will hardly be big corporations like Wal-Mart or Exxon; they will be small start-ups with no track records." Yeah, heaven fucking help that the little guys get a chance to get into a garage size AAPL before that scumsucking douchebag Dimon gets a chance to get RICHER off it.

Wed, 03/06/2013 - 16:09 | 3305854 TheGardener
TheGardener's picture

What happened to monopoly commissions ? Shouldn't big corporations be rather broken up and dismantled instead of being fed capital ? Wait, this was in pre-corporate-fascism days.

Bust the trusts, return entrepreneurship.

Wed, 03/06/2013 - 14:18 | 3305389 God Bless The V...
God Bless The Virtuous's picture


            If I might just add a small addition to your eloquent feeling,

Fuck You Rattner,

You rat bastard!


Wed, 03/06/2013 - 14:47 | 3305512 fuu
fuu's picture

Fair enough.

Crowd sourcing is a great thing, Rattner should DIAF. 

Wed, 03/06/2013 - 14:23 | 3305407 Wile-E-Coyote
Wile-E-Coyote's picture

Crowd Funding: This is obviously run by Al Qaeda.

Drones taking off 3...2...1

Wed, 03/06/2013 - 14:30 | 3305437 rotagen
rotagen's picture

Alternatives exist, make the fuckers irrelevant Bitcoin is just the start - subvert - marginalize - then destroy.

Wed, 03/06/2013 - 14:03 | 3305329 kliguy38
kliguy38's picture

Watta Scumbag!!

Wed, 03/06/2013 - 14:08 | 3305352 Edward Fiatski
Edward Fiatski's picture


"Crowd-funding will do fine."

Wed, 03/06/2013 - 14:04 | 3305334 Hippocratic Oaf
Hippocratic Oaf's picture

Irony........just sold unsolicited shares of GM for a client that held the bonds.

"They're pretty much worthless" he said, "Just get 'em the fuck outta there"

Wed, 03/06/2013 - 14:40 | 3305339 Mercury
Mercury's picture

Crowdsourcing might work for IPOs (it's not all that new - remember SAM?) but I doubt it will eat much into other I-bank areas like M&A and more complex corporate finance deals where reputation and personal relationships (trust) play a much bigger role.

So, that "reputation management and review tools" idea touches on a critical area and is a big "if".

Perhaps more important, related issues are: A) To what extend are companies more relectant to be public now (at least in the US) than they used to be and B) are public equity owners getting less and less control with their equity shares due to dual class structures and the like?

Wed, 03/06/2013 - 14:50 | 3305525 augustusgloop
augustusgloop's picture

Trust! Funny. Banker = Trust and I scroll back to Fab Fab the French Douchebag, Cassano et. al. sheparding institutional clients through complex financial deals involving collatorilized mortgate obligations. 

Wed, 03/06/2013 - 14:05 | 3305341 Cognitive Dissonance
Cognitive Dissonance's picture

"Most troublesome is the legalization of “crowd funding,” the ability of start-up companies to raise capital from small investors on the Internet."

While crowd funding is a wonderful concept that can be used to empower and capitalize micro businesses and individuals it can (and I suspect will) be used to seek out and fleece the last of the greater fools.

Wed, 03/06/2013 - 14:07 | 3305349 fonzannoon
fonzannoon's picture

Really? I see it as an expressway back to black markets.

Wed, 03/06/2013 - 14:21 | 3305402 NotApplicable
NotApplicable's picture

Those perspectives are not mutually exclusive.

Wed, 03/06/2013 - 14:23 | 3305408 fonzannoon
fonzannoon's picture

good point.

Wed, 03/06/2013 - 14:46 | 3305507 NotApplicable
NotApplicable's picture

As I've gotten older, I'm realizing that it applies to almost every disagreement I see. Especially when many of the conclusions rely on particular worldviews that simply do not overlap.

Wed, 03/06/2013 - 21:24 | 3305700 MachoMan
MachoMan's picture

sage advice...  although, I figure by the time I have wrinkled old man balls, I'll be drinking whiskey, eating bacon, and have come full circle...

Wed, 03/06/2013 - 14:25 | 3305414 CPL
CPL's picture

Black markets aren't public, anyone telling you a crowd sourced loan scheme is the black market would be wrong.


You know what a black market doesn't accept?  Credit.  Cash up front.

Wed, 03/06/2013 - 14:30 | 3305435 Mercury
Mercury's picture

They can be public (or public enough) they just aren't by definition legal.

Wed, 03/06/2013 - 14:32 | 3305451 Peterus
Peterus's picture

Not really. Actually cash is not commodity money so black market dealer taking paper dollars is exchanging for US govt credit... And you may take credit and still be illegal - so black market operation.

He's stretching the definition but so do you. Though I'd agree that it is somewhat similiar in the good side of the actual black market. It's reputation based and parties govern their own risks and it is outside of government control.

Wed, 03/06/2013 - 14:37 | 3305473 fonzannoon
fonzannoon's picture

I think it is an avenue to eventuality.

Wed, 03/06/2013 - 15:03 | 3305563 resurger
resurger's picture

Cash and Gold/Silver - CPL

Wed, 03/06/2013 - 14:21 | 3305400 XitSam
XitSam's picture

It is not government's job to protect me from myself.  The assumption that something is harmful unless government has a hand it is the root of many problems we now have.

Wed, 03/06/2013 - 23:45 | 3307586 honestann
honestann's picture

government === harmful

Wed, 03/06/2013 - 14:27 | 3305426 walküre
walküre's picture

cloud computing ... crowd funding ... who are the originators? has IPO mania back to the late 1990s written all over it.

let's do it all over again!


Wed, 03/06/2013 - 14:41 | 3305493 Matt
Matt's picture

The big difference is there is much more transparency, I think. If people, with the best information available, decide to invest in something that is either too good to be true, or is massively over-valued, why is it your business if that is how they choose to use their money?

When the government regulators and big banks like Goldman Sachs are running an IPO, there is an air of legitamacy that clouds people's views. With crowd funding, most people can see it is the wild west. There is no comfort blanket of regulations. It is pure caveat emptor.

On a side note, I find the term "trinkets" a bit offensive. In most cases, you help finance the developement and scale production of a product (or service), and in exchange, you can get that product. While many of these products are video games or books, there are some bigger ticket items like 3D Printers that can cost thousands.

Wed, 03/06/2013 - 14:58 | 3305544 ZerOhead
ZerOhead's picture

I agree with the whole caveat emptor thing. This could be a fantastic idea to get creative new small businesses up and running quickly.

Unfortunately Washington is the place where good ideas go to die therefore it will never happen. After all... fleecing sheeple has always been "God's Work"...

Wed, 03/06/2013 - 14:48 | 3305515 css1971
css1971's picture

There is some of that of course, all systems have their parasites however you can choose your level of risk, you can spread your investment over many areas and people who build up their credit rating get cheaper loans than those who are unknown.

The really big plus? They aren't fractionally reserved. No boom, no bust.

Ooops, "The Cloud" accidentally killed the banks? That's market efficiency for you.

Note, there's a difference between crowd funding and peer to peer lending.

Wed, 03/06/2013 - 15:01 | 3305556 fuu
fuu's picture

"it can (and I suspect will) be used to seek out and fleece the last of the greater fools"

I've heard many people say the same thing about ZH.

Wed, 03/06/2013 - 14:06 | 3305343 otto skorzeny
otto skorzeny's picture

The Tribe has to get their cut

Wed, 03/06/2013 - 14:06 | 3305344 XitSam
XitSam's picture

This is not exclusive to the Obama administration. Statist control freaks of both parties want to prohibit any action they do not specifically approve.

Wed, 03/06/2013 - 14:07 | 3305346 Gamma735
Gamma735's picture

If they can bypass Wall Street, more power to them.

Wed, 03/06/2013 - 14:07 | 3305351 bnbdnb
bnbdnb's picture

I love the idea personally. I can't stand the current neverending federal government conglomerates.

Wed, 03/06/2013 - 14:11 | 3305363 otto skorzeny
otto skorzeny's picture

It's all about control via the US dollar-why do you think we've been toppling dictators  that whisper they may be looking for an alternative currency backed by real commodities

Wed, 03/06/2013 - 14:09 | 3305355 observer007
observer007's picture
Brave New Chip Cash World - CeBIT 2013: Withdrawing cash with the new German ID card

Bio Chip comming soon...

Wed, 03/06/2013 - 14:13 | 3305370 otto skorzeny
otto skorzeny's picture

fuck me-it'll be here sooner than I thought. let me guess-the German version will easily sync up with a US,GB,Fr etc version- the mark of the beast will be a NWO issued digital currency card.

Wed, 03/06/2013 - 14:26 | 3305416 Intoxicologist
Intoxicologist's picture

I use the Rural Bank of Intox.  No cards, no fees, no snooping. 

(BTW, Otto, I watched "Croupier" last night.  Loved it!  Thanks for the tip!)

Wed, 03/06/2013 - 14:31 | 3305444 otto skorzeny
otto skorzeny's picture

Clive Owen is the last of a dying breed

Wed, 03/06/2013 - 14:41 | 3305492 Intoxicologist
Intoxicologist's picture

You said it best:  "Clive is the shit!"

Wed, 03/06/2013 - 16:08 | 3305870 Kirk2NCC1701
Kirk2NCC1701's picture

observer007, Didn't I say so for a while?  Most recently...

Sat, 03/02/2013 - 16:21 | 3294057 new Kirk2NCC1701


There's one very, Very,VERY scary scenario where holding or not holding PM won't matter to the retail/private 'person' entity:  If TPTB turn each and everyone one of us into walking, taking Bitcoins.  Using RFID tech.  Whether on a card, smart-phone or implant.  Whichever is more 'convenient' at first, until the default become the implant.

Then EVERY transaction of any kind is digitally recorded, traceable and enforceable.  Welcome to the self-fulfilled world of 666.  Then they can impose fiat rules on gold buys & sells, and tax at will.  They can and will come after you and your precious, and no amount of G&A will save you from their 'targeted' and systematic enforcement.  So...


Wed, 03/06/2013 - 14:10 | 3305359 Hughing
Hughing's picture

As Mark Grant suggested, I believe that one of this administration's goals is to have one politically controlled lender, the Fed, and several crony banks. A malignant deconstruction of the federal reserve system; but, fascists smash as socialists smile.


Wed, 03/06/2013 - 14:24 | 3305409 NotApplicable
NotApplicable's picture

The Fed is merely the abstraction of the day. Once it's destroyed, they'll just come up with another.

Remember, the true goal is wealth transfer, while the vehicle doing the carrying is always replaceable.

Wed, 03/06/2013 - 15:26 | 3305678 Vince Clortho
Vince Clortho's picture

I gave you an upvote for the "abstraction of the day" phrase.  You also nailed wealth transfer as the goal.

The Central banks are going to be with us for awhile.  At least until we get to the Planetary Ruler phase.

Wed, 03/06/2013 - 14:10 | 3305361 Daedalus
Daedalus's picture

You mean like my favourite Scottish brewery has already done? (I guess UK securities laws must be more flexible)


Declared Interest: I am a (smaller) shareholder and (larger) beer drinker

Wed, 03/06/2013 - 14:23 | 3305406 AugmentedFourth
AugmentedFourth's picture

I went to BrewDog in Edinburgh. Love that place! Even better that they created a beer called "Nanny State" as a symbolic protest against the attempts of the Parlament to ban one of their ales for being too strong!

Wed, 03/06/2013 - 14:33 | 3305457 NotApplicable
NotApplicable's picture

I just went to their website.

BrewDog is a post Punk apocalyptic mother fu*ker of a craft brewery.

Say goodbye to the corporate beer whores crazy for power and world domination. Swear allegiance to the uncompromising revolution.

Taste the hops, live the dream. Learn to speak beer, love fruit and never forget you come from a long line of truth seekers, movers and warriors - the outlaw elite. Ride toward anarchy and caramel craziness. Let the sharp bitter finish rip you straight to the tits.

Save up for a Luger, and drill the bastards.

Now that's a brewery!

Wed, 03/06/2013 - 14:12 | 3305365 Fix-ItSilly
Fix-ItSilly's picture

How about some correct historical context?  Mr. Rattner ran money and pled guilty to SEC Pay to Play Scheme accusations of screwing the pubic.  I guess he feels it is better to hand money over the likes of him.  What is sooooo  saaaaaad is that the NY Times and the Financial Times are giving this fraudster a platform without a byline of how he screwed the public.  This is especially poignant as here he is throwing rocks at the government for not protecting investors from fraudsters the likes of himself!

Wed, 03/06/2013 - 14:51 | 3305526 NotApplicable
NotApplicable's picture

I think they call that a "win-win."

Wed, 03/06/2013 - 14:13 | 3305368 fonzannoon
fonzannoon's picture

speaking of crowds where are all the bodies of hedge funds whose largest position is apple? At 425 I thought they would be littered all over the place.

Wed, 03/06/2013 - 14:49 | 3305521 NotApplicable
NotApplicable's picture

Question is, how's Kevin Henry doing?

Wed, 03/06/2013 - 14:14 | 3305372 Seasmoke
Seasmoke's picture

All Rattners are fucking scumbags.

Wed, 03/06/2013 - 14:19 | 3305393 yogibear
yogibear's picture

There are more than one Rat-tners. LOL, Oh my, cut the banksters out? The leeching scumbag banksters will be pissed. 

Wed, 03/06/2013 - 14:22 | 3305404 Mad Mohel
Mad Mohel's picture

Trinkets!? How about motherfuckin nooses. Bankers get a special two for one deal. And that little puke Rattner gets to cut in line.

Wed, 03/06/2013 - 14:25 | 3305411 the not so migh...
the not so mighty maximiza's picture

Raise money however the fuck you want, fuck them.

Wed, 03/06/2013 - 14:27 | 3305422 Peterus
Peterus's picture

Samuel L Jackson voice:

So what, now they'll come for the crowdfunding? Those mooootherf*ckeeeers!

Wed, 03/06/2013 - 14:29 | 3305433 Pairadimes
Pairadimes's picture

Every industry has their Shaman class, whose job it is to defend their rents on the value chain. In healthcare, it is the doctors, who have also convinced everybody that too much freedom in the hands of the great unwashed will kill everybody, therefore we must all pay them for access to anything else.

This Rattner-bastard is no different. Free markets are great for these guys until someone comes up with the idea that they really ought to be actually free. Then watch the spittle fly.

Wed, 03/06/2013 - 14:34 | 3305465 jbvtme
jbvtme's picture

rattner...let them eat cheese

Wed, 03/06/2013 - 14:38 | 3305485 Zer0head
Wed, 03/06/2013 - 14:38 | 3305486 Joy on Maui
Joy on Maui's picture

It is beyond hypocrisy - crowd sourced funding was just fine to get Obama into office, but is to be avoided for support of anything acutally economically meaningful?

Wed, 03/06/2013 - 14:44 | 3305502 resurger
resurger's picture

Fuck invetment bankers and their filthy free money.

Wed, 03/06/2013 - 14:46 | 3305503 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Decentralized market and trading platform taking advantage of the same principles behind things like bittorrent and tor fucks all them as far regulation and central manipulation goes. It puts the free back in free markets. The market sets the rules not the other way around. You can do it without using real money in the network market. As long as the tax man can get their cut when you cash out (like taking your poker chips to the cash booth at a casino) the governments will go along with it. The banks and all these middleman parasites can go fuck themselves if they think they are going control how the game is played. Everyone aka (the network) is the market and the market is always everyone at all times. In a set up like that anyone can log in at any time and get started with as little as a single share. If you want to allow middlemen to manage your shares that is your perogative, the free market allows for it.

Wed, 03/06/2013 - 15:01 | 3305559 Kastorsky
Kastorsky's picture


Wed, 03/06/2013 - 15:05 | 3305574 Kastorsky
Kastorsky's picture


a dirty jew

An investment firm founded by President Obama's former car czar, Steven Rattner, has agreed to pay $12 million to resolve allegations that it paid kickbacks to drum up business from New York's giant government pension fund.

Wed, 03/06/2013 - 15:15 | 3305560 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

I also think crowd funding is a great idea. It is wonderfully libertarian type of idea in that it gives the power back to the individuals and limits the centralization stranglehold of control over the process. Like anything else a fool and his money are soon parted. If you aren't a fool, you'll do your due dilligence before investing when it comes down to crowd funding or any other investment. Fundamentals always come first, the investment vehicle is second. If the fundamentals don't check out no need to go to step 2.

We spend too much time trying deny fools from going extinct. It is a basic law of nature.

Wed, 03/06/2013 - 15:28 | 3305686 Vince Clortho
Vince Clortho's picture

This is outrageous.

How are Central Bankers going to rule the world if they cannot completely control all aspects of fiscal policy?

Wed, 03/06/2013 - 15:39 | 3305739 Decimus Lunius ...
Decimus Lunius Luvenalis's picture

This is why socialism never results in class mobility, is generally favored by the already rich, and loved by major corporations.  It is also the tragic irony borne by those that both decry corporate welfare and money in politics yet crave government intervention.  Regulations present entry barriers to future competitors and margin squeezers for mid-size competitors.  Only those dominant in their industry can truly afford to comply and remain profitable while providing the same quality product/service.  In such a system, subsidized food, housing, or other goodies from the government are both attempts to mask that you're poor and have no chance at a meaningful improvement in your living standard and to secure a political voting bloc. 

Wed, 03/06/2013 - 15:49 | 3305781 Kirk2NCC1701
Kirk2NCC1701's picture

The ONLY reason it "troubles" him and his ilk, is because it makes the control of money-flow less traceable and controllable by the Money Cartel.

Anything that upsets or troubles him/them, HAS to be a sign of a healthier, free-market economy.

In time -- and mark my words! -- these same MoFu's will actually embrace the idea -- meaning:  They will have found a way to subvert the process via a series of (leveraged and pyramidal) M & A's.  He's just stalling for time.



Wed, 03/06/2013 - 17:40 | 3306235 Bicycle Repairman
Bicycle Repairman's picture

If this new initiative interferes with the investment banks, look for a politically imposed "solution".

Wed, 03/06/2013 - 18:49 | 3306505 The Iconoclast
The Iconoclast's picture

Rattner doesn't give a shit about whether or not people get scammed out of their money.  He is afraid of losing control, losing HIS ability to scam people out of their money, losing HIS ability to scam startups out of their money.  It's called disintermediation, DICK!

Guy's a fuckin' scammer.  Read the HuffPo article linked above.  Oh he's too well connected to actually get prosecuted in this day and age.  Nah, he gets to pen articles in the NYT decrying how someone might somehow get ripped off by someone, sometime (other than by him).

BTW VCs suck!  You put your life savings and years of your life into your business and the VC will fund you in exchange for the right to steal it from you at any time.  Or purposefully crash it by ordering it to buy a bunch of shit it doesn't need from one of their other startups, to make their numbers look good.  Fortunately Internet businesses don't necessarily need a lot of capital to get started, hence too much VC money chasing too many shitty deals.  Google bootstrapped, profitable and proud.

Agree with many of the commenters -- if guys like Rattner don't like it, it's almost for sure a good idea.

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