Of all financial markets, only the Initial Public Offering (IPO) market is healing itself without big government intervention. The recent successful debuts of pediatric nutritionist Mead Johnson, foreign language specialist Rosetta Stone and Chinese internet game creator Changyou are all testimony that entrepreneurial spirits still live.

Yet, IPO issuance continues at historically low levels, despite the legions of venture backed companies looking to expand, the many private equity firms needing to deleverage, and their respective backers wanting to liquidate. A mere five IPOs (as of May 15th) have been offered to the public since the beginning of the year, compared to 25, 75, and 69 IPOs in 2008, 2007, and 2006, respectively. IPO issuance in 2008 and 2009 is lower than any period since the 1970s when business creation struggled against inflation, high interest rates, the Vietnam War and a massive wealth transfer under the War on Poverty. more