James Siminoff

Another angle on the economy

Like many I was thinking a lot this weekend about the economy.  One angle which I have not heard people attributing to the melt down of the US stock markets is the lack of IPO’s over the last few years.

As money continued to pour into the markets after they bounced back from 2001, there have been very few new companies to put it into.  The rules and lack of interest in IPO’s have kept many “should be” public companies private.

The less places to put a fire hose of 401k money, hedge fund dollars, etc., must have contributed to creating such a top heavy market.  It is probably time to look into how to allow companies to be public without the massive costs currently associated with it.