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Source link: http://archive.mises.org/5099/dont-raise-capital-in-america/

Don’t Raise Capital in America

May 26, 2006 by

Because I think they’re only accessible to people with paid subscriptions, I rarely blog items from the Wall Street Journal. But this one from the Opinion page of today (Friday, May 26) is worth a click just to see if you get lucky. Or grab the PAPER while it’s still in the office/house.

The article explains the proposed merger between the New York Stock Exchange and EuroNext as NYSE’s last gasp at survival in global capital markets after the US capital market has sustained the ravages of Oxley-Sarbanes, the criminalization of management and stock promotion, and rampant class-action suits triggered by any and every downtick.

Guess what? Companies don’t want to raise capital in America anymore. Now, it’s Europe – EUROPE! – that’s friendlier by far to business and capital. Things are upside-down, now, and this American is mortified to be on the bottom. Growing poorer, too.

{ 3 comments }

M E Hoffer May 26, 2006 at 3:52 pm

I find it interesting that an issue, such as the topic of ths post, that is gravely important to the long-run ability of the U.S. to remain competitive in the World marketplace is met with such deafening silence. While, of course, inane and obtuse fallacies in reference to pretended “liability” are commenced with such a cacaphony as to mute simple Reason.

If the above “Polaroid” develops any semblence of our current state of affairs, we, for sure, are no “Brothers in Arms”, but, certainly, are in dire straights.

Artisan May 28, 2006 at 4:16 am

I followed the news coverage over here in Europe. The discussion was mostly (self)concerned with the choice of the US partner in stead of the German Stock Exchange… But fact is big investors sit in America not in Germany, and Euronext wants them more than it is eager to build a new European “core of industry” to “stand firm in the globalization war” …

Still, how can there be a warranty that the new US financial regulations will not contaminate European policies soon. Apparently this exclusion from US regulation has been written down though, and a main factor of decision for Euronext, yet I don’t understand how US Government can tolerate such an obvious hole in its own legislation?

J Henderson May 28, 2006 at 8:51 am

The Europeans will probably tighten up their regs eventually. For now, it is good to see that competition still rules the day. Perhaps Russia, China or India will soon recognize the advantage that can be gained from protecting property in the financial realm.

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