I wonder how all those high tech workers feel after having supported Obama so strongly during the election only to find out that he wants to do things like regulate venture capital firms with over $30 million in managed money. This covers most of the VC firms out there and means that they would have to register with the SEC and jump through god knows how many hoops to fund startups. If this happens, it will certainly have a cooling effect on innovation and I can’t imagine all those VCs up in San Francisco are happy about it.
The financial meltdown will result in higher government regulation of all kinds of industries and it will have negative long term effects on innovation in this country. This is only the beginning.