You know that friend of yours that was born with a horseshoe in his pocket and rabbits foot around his wrist? Everything he touches turns to gold. He always has the ability to turn the worst situation into a great opportunity. Well the federal government ain’t that guy. The latest example is the Financial Reform Bill.
Like all things government, this bill is as a behemoth. I would bet my family savings that not one of the ‘public servants’ in either house has read the 2,000 page bill. It creates a new consumer-protection bureau, within the Federal Reserve, with powers to write rules for, and if they deem necessary to outlaw certain, financial products. It gives the government the power to break up any failing financial firm. Can any of them answer this question: At what point is a firm failing? I didn’t think so.
Few American’s are sympathetic to large money-center banks, but this law is confiscatory, expected to cut profits between 5%-20%. Additionally, a last minute conference committee decision adds a $19 billion one-off tax on them to pay for the law. As my dear friend Austin Powers would say “Ouch baby, very ouch”. For the most part, they made their own bed and they have to sleep in it. But if I’m choosing sides between banks and the Belt Way Gang, well, I’m just saying. This bill will make it even more difficult for small companies to securing operating capital.
The Treasury is proud to point out that this is the most comprehensive new banking legislation since the Depression. Other than a few hiccups, the United States has enjoyed 70 years of economic expansion and incredible innovation. It has been a tremendous environment for smart entrepreneurs to start and grow small companies. In the end, the new consumer bureau just adds another government agency to the business prevention team. It doesn’t even address Fannie Mae and Freddie Mac, who were at the front of this financial crisis to begin with.
Massive government involvement rarely makes a challenging situation better. Some adjustments need to be made to protect consumers and investors, but not this. If a plane hits an air pocket, you don’t see both pilots and six flight attendants grabbing the controls all at once and yanking them all over the place. However, that is exactly how the federal government reacts to almost every challenge.
Today’s Markets
U.S. stocks rallied from earlier losses but couldn’t climb out of the red, as housing and jobs data disappointed investors. The Dow Jones Industrial Average closed down 41 points, or 0.4%, at 9733. The weak U.S. data only added to investor concerns about the slow global growth and how it might be impacted by debt worries in the Europe and China.
Following the S&P 500′s recent move below 1040, considered by many traders as a major support line, traders are now keeping a close eye on whether the measure can stay above the 1008 to 1010 range, which is considered the next big support area. If it breaks below that, investors will then look to the 1000 level.
Thursday’s declines followed reports showing that U.S. pending-home sales plunged 30% in May, the first month after the homebuyer tax credit expired, and that the Institute for Supply Management’s June manufacturing index dropped more than expected.
The euro gained sharply against the dollar on Spain’s government bond auction, which sparked confidence in the region’s banking system. The euro was trading at $1.2500 in recent trade, up from $1.2229 late Wednesday in New York.
Today’s Top Performers on the OTCBB
| Company | Symbol | Last | Chg | %Chg | Open | High | Low | Vol | |
| Hydron Technologie | HTEC | 0.02 |  |
0.0174 | 669.23% | 0.02 | 0.02 | 0.02 | 400 |
| Masterbeat Corp | MSTO | 1.01 | |
0.76 | 304.00% | 1.01 | 1.01 | 1.01 | 200 |
| Zolon Corp | ZLON | 0.45 | |
0.25 | 125.00% | 0.45 | 0.45 | 0.45 | 5.6 k |
| Starfield Resource | SRFDF | 0.10 | |
0.0543 | 118.82% | 0.07 | 0.10 | 0.07 | 15 k |
| Timberjack Sportin | TBJK | 0.006 | |
0.003 | 100.00% | 0.0045 | 0.0065 | 0.0045 | 903.64 k |
| Signet Internation | SIGN | 0.50 | |
0.25 | 100.00% | 0.28 | 0.50 | 0.28 | 137.5 k |
| Encompass Group Af | ECGA | 0.0002 | |
0.0001 | 100.00% | 0.0002 | 0.0002 | 0.0002 | 500 k |
| U.S. Aerospace Inc. | USAE | 0.12 | |
0.0599 | 99.67% | 0.12 | 0.12 | 0.12 | 200 |
| Eat at Joe’s Ltd. | JOES | 0.015 | |
0.007 | 87.50% | 0.015 | 0.015 | 0.015 | 2 k |
| Delta Mutual Inc. | DLTZ | 0.43 | |
0.20 | 86.96% | 0.43 | 0.43 | 0.43 | 200 |
Thursday’s Newsmakers:
eCrypt Technologies, Inc. (ECRY.OB) Secures $2 Million in Financing
Jul. 1, 2010 (Business Wire)
eCrypt Technologies, Inc. ECRY is pleased to announce it has secured USD$2 million pursuant to a financing agreement signed in April. To date, eCrypt Technologies, Inc. (the “Company”) has received $400,000.
The financing is in exchange for issuing restricted common stock. “We’re very pleased to have secured the financing as it allows the Company to ensure its 2010 operational goals can be initiated. We took the first step when we launched a national ad campaign with a 30-second commercial that aired on CNBC, and is available for viewing on YouTube and on the Company’s website,” commented Brad Lever, CEO of eCrypt. “It also allows us to continue our research and development to allow eCrypt to stay at the forefront of wireless security as the world increasingly turns to wireless apps.”
eCrypt’s signature software affords users complete security on their BlackBerry® smartphones by opening a secure “tunnel” for communication between two users, with unique keys that are not stored on any servers. BlackBerry smartphones are the flagship product of Research in Motion RIMM.
About eCrypt Technologies
eCrypt Technologies, Inc. is an information security firm with a focus on the wireless industry. Its flagship product “eCrypt” is a first-of-its-kind encryption software for wireless email on BlackBerry® smartphones, and is available under a perpetual license or on a pay-per-use basis. Using the strongest encryption algorithms available for the BlackBerry® smartphone OS, eCrypt software prevents unwanted access to email messages during transmission and storage on servers and PCs. Users may communicate freely with each other knowing that no one has access to the content of their emails.
eCrypt is a member of the BlackBerry® Alliance Program and has successfully obtained a Mass Market Status for its product from the U.S. Department of Commerce, Bureau of Industry and Security. This status allows eCrypt to export and re-export the software under section 742.15(B)(2) of the Export Administration Regulations, and is recognized by the Wassenaar Arrangement.
eCrypt is available for BlackBerry® Internet Service and BlackBerry® Enterprise Server customers.
For further information, go to: www.ecryptinc.com or www.yourprivacyisourbusiness.com.
Source: Business Wire (July 1, 2010 – 1:18 PM EDT)
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