Back to the Future–  one of my favorite films.  I literally fantasize about being able to go back in time and make investments with the benefit of knowing what is coming down the road.

Congressman Eric Cantor must either be a movie buff or share my same fantasy.

Eric Cantor is the House Majority Leader and is not even on the Financial Services Committee.  But that didn’t stop him from proposing the brilliant idea to bring back the bubble through the Jumpstart Our Business Startups ACT…otherwise known as the JOBS Act…it’s a Job alright…It’s an Inside Job and it is going to make us a lot of money.

There are a lot of great things in the act but the one I like the best is that if you are a startup under a billion dollars you can list on an American market for 4 years without an audited financial statement.  How sweet is that?  I can say whatever I want about my snake oil for 4 years before…oopsie…that $999 million dollars we made, and everyone invested into, that actually needs to be restated…it was actually $9 dollars.  And you can’t touch me for it.

God bless the Majority Leader Eric Cantor for this exquisite and legal invitation to commit “financial engineering.” This is a modern Chief Financial Officers wet dream because now we are really going… back to the future!

This was the formula for success for those on Wall Street when the NASDAQ was hitting 5000.  Largely fueled by IPOs of companies without any audited balance sheets.  That was 12 years ago and many of the companies that took the NASDAQ so high are gone for good…

Since then we have had 12 years of real earnings and real business and the NASDAQ hasn’t even gone close to its all time high.  And that is because reforms were put in place and there have not been enough fake earnings and fake projections to pump it back up… Until now.  This bipartisan bill, proposed by a Republican and signed into law by Democratic President Obama exposes the reality that both Republicans and Democrats understand that we need to get the people to put their money– their savings and pensions– back into the market… So we can take it.