Bypassing Wall Street: The Direct Route to Raising Capital and Investing 


Table of Contents (Start wherever you wish, by clicking on a heading)




Where is Wall Street and Who Works There


                        Wall Street’s monopoly


                        Wall Street expands beyond stocks and beyond New York


                        Wall Street ignores the middle class


                        Buy side money managers join Wall Street


                        Wall Street transfers risk onto its customers


                        Wall Street becomes a casino


                        Wall Street partnerships become corporations


                        Buy side money managers become entrepreneurs


                        Wall Street dominates the economy and government


                        Wall Street keeps its monopoly on public offerings


                        Venture capital becomes another Wall Street money manager


Why We Once Needed Investment Bankers and Don’t Anymore


                        Direct investing was not enough before electronic communication


                        The role of investment bankers—in their beginning years


                        The middle class enters the investment market


                        Cutting out commercial bank competition—and the middle class


                        Our government bypasses Wall Street to pay for World War II


                        Wall Street—but not investment bankers—court the middle class


                        Mutual Funds come between investment bankers and the middle class


                        Financial derivatives become the investment banker’s stock in trade


                        Investment bankers become traders for their own accounts


                        Wall Street commercial banks become investment bankers again


                        Investment bankers no longer “underwrite” securities offerings


                        Why we still have investment bankers today


 The Harm That Wall Street Causes


                        Wall Street causes our economy to crash


                        Wall Street sacrifices everything for short-term profits


                        Wall Street Starves Entrepreneurs


                        Wall Street has caused a disconnect between people and our economy


                        Wall Street excludes the middle class from share ownership


                        Wall Street rations money for local governments and nonprofits


                        Wall Street uses complexity to maintain an impenetrable mystique


                        Wall Street uses complexity to hide risk


                        Wall Street has concentrated power in the few


                        Wall Street has made capitalism a casino game


                        Wall Street recycles taxpayers’ money and reduces retirees’ income


                        Mutual fund managers have adopted Wall Street morals and practices


                        Wall Street money managers don’t restrain corporate greed


                        Wall Street Changed the Objectives of Business


                        The IPO is not about financing business, it’s about the game


                        Wall Street crippled local governments

                        Wall Street cleaned out savings and loan associations

                        Wall Street trashed government sponsored entities


                        Wall Street promotes wasteful class action litigation


                        The way Wall Street works creates moral hazards that infect us all   


                        Wall Street promotes monopolies


                        Wall Street entices some of our best minds away from more useful work


                        Wall Street’s morality harms our national psyche


                        The Wall Street capital formation myth


  Direct Routes Open Now for Bypassing Wall Street




Commercial Paper


Family and Friends


Direct Community Offerings


Direct Local Government Bond Offerings




Peer-to-Peer Financing/Social Lending


Angel Investors


Search Funds




Community Supported Agriculture


Suppliers as Shareowners


Rights Offerings




Folio Services


Posting Services






Local Governments as Direct Investors


Social Stock Exchanges


Dead Ends--Direct Routes That Were Blocked


Routes Around Securities Regulation


"The Era of Wall Street Domination is Over"


The Traffic Cops on Wall Street


                        Government Enables and Enforces Wall Street's Monopoly


                        The Federal Reserve Subsidizes Wall Street


                        The States and the Supreme Court Fashion Corporations to Serve Wall Street


                        The "Watered Stock" Red Herring


                        Government Left Wall Street Unconstrained Until the New Deal


                        The Great Depression, the New Deal and a Wall Street Strike of Capital


                        The SEC is Set Up to Police (Protect) Wall Street


                        How All Three Government Branches Protect Wall Street From Investors


                        Congress Sets Up Another Casino for Derivatives Games


                        Congress Cancels Out State Regulation of Wall Street


                        The Courts and Prosecutors Choose to Let Wall Street Run Loose


                        The "Regulatory Gap" for Investment Bankers Proves Self-Regulation Doesn't Work


                        Private Securities Cases Become Their Own Scam


                        Securities Laws Protect Wall Street Schemes, Like "Front-Running"


                        Wall Street Investment Bankers Use the New Deal Laws to Protect Their Monopoly


                        Wall Street is Allowed to Play Both Sides of the Game


                        Government Kicks Commercial Banks off Wall Street's Turf, Temporarily


                        The SEC Deregulates Wall Street's Sell Side, in its Dealings with the Buy Side


                        Privatizing Corporate Regulation


                        Opening the Door to Mortgage Securities and Subprime Loans


                        The SEC Helps Investment Bankers Focus on Institutions and the Wealthy


                        Build America Bonds Boondoggle


                        The Hedge Fund Loophole for Wall Street and Wealthy Investors


                        Congress Protects Wall Street's Buy Side


What Government Could Do


                        Proclaim National Policies


                        Limit Wall Street's Power to Harm Us


                        End Wall Street’s Monopoly Over the Flow of Investment Money


                        Free Small Business from Wall Street Regulation


                        Educate Individuals to be Shareowners


                        Encourage Individuals to Invest in Small Business


                        Demonstrate Direct Offerings of Government Securities


                        Income Tax Rules Could Favor Shareownership


                        Make Corporate Charters Conditional and Revocable


Proposals for Change


                        Business as Usual, with Some Tinkering


                        Expecting Technology to Replace Wall Street


                        Using the Government to Bypass Wall Street


                        Changing the Corporation


                        Redistributing Income


                        Changing our Culture


                        Broadening the Ownership of Business