That’s
why the SEC has had a poor record in discovering massive frauds and
Ponzi schemes, uncovering them usually by chance, and only after
they have already been exposed.
But
in their mad dash in reacting to fraud, instead of preventing the
bulk of transgressions, the SEC does lots of monetary damage. They
tend to pick the average, uninformed investor’s pocketbook by
causing unnecessary expense with legal fine-tooth-combing, printing and
mailing.
And
requires such action constantly, perhaps to a far greater extent than
is necessary to alert an ordinarily informed investor.
Just
one example: The expense of having banks, mutual funds and
corporations send out useless, expensive, legalese financial
literature, that the recipients do not read because they cannot
understand the terms the SEC has the senders use.
The
only ones who can profit are the lawyers. If a dot or letter isn’t
properly crossed or is missing, the lawyers will sue the senders of
that hard-to- read and comprehend mail. Again, at the expense of the
poor mail recipients who never benefit from the impractical
information anyway. (See the Earl J. Weinreb
NewsHole® comments and @BusinessNewshole tweets.)
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