14How the SEC Made Matters Worse
THE SECURITIES AND EXCHANGE COMMISSION (SEC) IS SUPPOSED to protect capital-market investors. What it primarily does is make a massive number of rules designed to provide investors with “transparent” financial and operating information to ensure that they can make sound investments. Based on the performance of capital markets over the last 10 years, there is prima facie evidence that the SEC has failed miserably. Without even considering the fraud and abuse that the SEC failed to detect in cases like Enron, WorldCom, Fannie Mae, Freddie Mac, and Bernie Madoff, simply consider that the S&P 500 today (August 2011) is still 11 percent below where it traded in August 2000.
Because the work of the SEC is somewhat ...
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