Here’s an example of the unnecessary costs of regulation: a low cost funeral home that’s required to add a $30,000 embalming room to each of its locations even though it out-sources its embalming. Who benefits? Funeral homes that don’t out-source their embalming (and charge significantly—as in an order of magnitude—more).
Hat tip: Bryan Caplan
I’ll bet somewhere Jessica Mitford is laughing.
Let’s not go there. I live in the land of the monastery that fought the state government for the right to build caskets.
Heh. Closer to, at least, my world. Dodd-Frank is really starting to take its toll on PE firms. Many smaller firms are converting to SBIC’s to get themselves outside of Dodd-Frank. That strategy shift has real, and negative, implications for capital formation.
We have decided, for now at least, to move forward and try to raise our next fund. But Dodd-Frank compliance (and this is outside of audit or penalty contingencies) will cost 1 time (setup) perhaps $175K, and ongoing maybe $100K per year. This for a firm that has a current operating budget of about $2MM. So its a 5-10% hit.
Because Dodd-Frank was so ill thought out and is morphing month to month as the regulators try to figure out what it really means who knows when things wills settle down. It won’t need to become too much more onerous and we’ll shut the place down and go play golf. Actually, one of my partners will just sail.
I don’t know what $30K means to a funeral home. But its all crappola. All so two guys with blood on their hands wrt the housing bubble could walk away feeling good about themselves……..with accolades from the sycophants.
And who gets screwed?
Oooh, I like sailing. Thank you, Drew.
Except I don’t think he’s planning on inviting you, Janis. But I could put in a good word for you.
I’m fairly sure he wouldn’t . I’m a well-aged 55.
Heh. Don’t think that’s an issue.
Anyway.
If I were sailing the broad sea, I’d like my unexpected male guests to be ripped and no older than 40. I’d also like them to be quiet and look pretty.
I like a woman who knows what she wants and states it plainly.