Postcards: Score ONE for the Good Guys

From a practice field somewhere in central Maryland, we breakdown an important decision by the SEC and the future of markets. ͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­ Forwarded this email? [Subscribe here]() for more You are a free subscriber to Postcards from the Florida Republic. To upgrade to paid and receive the daily Republic Risk Letter, [subscribe here](. --------------------------------------------------------------- [Postcards: Score ONE for the Good Guys]( From a practice field somewhere in central Maryland, we breakdown an important decision by the SEC and the future of markets. [Garrett {NAME}](floridarepublic) Sep 10 floridarepublic   [READ IN APP](   Market Update: We’ve had two days of gains and hope to see greater developments. However, I feel very nervous about China’s deflationary problems and continued weakness across the energy sector. It's still red across the board. Dear Fellow Expat: The Red Roses didn’t debut well in the Under 7 category. Amelia let up two goals and committed a penalty by picking up the ball outside the box. As I said, four goals were scored by the Black Ringers… with a mysterious No. 8 who looked like she might be Wayne Rooney’s daughter. That girl scored three goals. There was a mercy goal at the end - with the young opposing goalie getting distracted by her parents behind the goal. After the first game of the year, the league issued a series of warnings against parents. No coaching from the sidelines. No sitting on the side of the coaches. And NO PARENTS behind the goals. I guess a bunch of people are convinced that the road to a college scholarship starts in the Timonium league, where the attention spans are that of six-year-old girls. As I said… my daughter was busy doing cartwheels in the grass. But she at least went crazy supporting her team when they scored. That’s what it’s all about. Speaking of wins for the good guys… A Huge Win (or Failure) Depending on Your Government Job Reports indicate that SEC Chairman Gary Gensler will abandon his ESG requirements as he approaches the end of his term. Gensler kept aruging that massive regulatory cost increases would HELP U.S. firms. As I’ve noted, the SEC wanted public companies to disclose various levels of greenhouse emissions in their disclosures and other initiatives linked to board diversity reporting and workforce management. The latter two never irked me. But the emissions disclosures always have. They’re still trying to create a massive carbon market that will benefit banks like Goldman Sachs (where Gensler was previously a partner). Not only would emissions disclosures force every CFO in the markets to become an expert in climate theory, but it would also be extremely costly and time-consuming. The emissions requirements were broken into three tiers (called Scope I, II, and III). The third scope was downstream emissions on suppliers' emission output - something that’s almost impossible to measure. They claimed that these counts would be voluntary… but I don’t believe it won’t turn into a mandate later. The SEC eventually abandoned the insane Scope III measures in May, but the rest of these costs lurked. But why would we expect bureaucrats to understand a public company's opportunity costs, time requirements, and proper resource allocation?  [There’s money in it for lawyers]( is my usual guess. This is a good thing that this is going away. The bad news is that Europe may try to implement the same draconian rules around the globe. (Isn’t globalism fun, kids?) Chinese companies won’t be doing this… or they’ll just submit fake numbers (because what’s actually real?) [In the U.S., emissions counting was a massive deterrent for future companies to go public.]( There are still two other things on the table that remain a problem for future IPOs. Hopefully, this will start reducing other factors keeping companies from going public (e.g., the lack of supply-side reform, Sarbanes Oxley, and the reliance on more private capital than ever in the markets). We take small wins where we can get them. Even if it feels like they’re running up the score against us. Stay positive, Garrett {NAME} Disclaimer Nothing in this email should be considered personalized financial advice. While we may answer your general customer questions, we are not licensed under securities laws to guide your investment situation. Do not consider any communication between you and Florida Republic employees as financial advice. Under company rules, editors and writers cannot recommend their positions. The communication in this letter is for information and educational purposes unless otherwise strictly worded as a recommendation. 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