Skip to comments.House membersí stock market success questioned
Posted on 05/25/2011 6:01:20 PM PDT by newzjunkey
... A study published in the journal Business and Politics Wednesday found that members of the House of Representatives outperform the average investor when it comes to buying and selling stocks by 55 basis points per month, or six percent annually...
Despite their reputation as the party of the rich, Republicans fared worse than their Democratic colleagues when it comes to playing the market, according to the study. That could be because Democrats were the majority party, and thus held more leadership posts, for most of the period under review...
(Excerpt) Read more at washingtontimes.com ...
Insider trading regulations and laws do not apply to members of congress and their staff by federal law.
More evidence of the fact we are now a FASCIST country.
Is that true?
They’re only getting up to 6 percent annually? That’s chump change, that’s barely the nominal dividend on a good stock.
A Racketeering and Influenced Corrupt Organisation of, for, and by the people, or just a Ricocracy for short.
Tangent to this Bush and Cheney put all their money in temporary Blind Trust with their financial planners at arms length and Cheney donating over 30 million in company stock and the "535" do not, scratch that, are not required to hire someone to act as a "fudicary" ( Yes Frank-en-stein's new mantra) ?
I am ready to puke....
He sits on many committees that see these “opportunities” before they ever get to market.
We'd be safer if la cosa nostra was in charge.
We need a congress to watch our congress.
Congress should be dissolved and attorneys should be barred from running for office.
These people make me ill!
Being part of the government entity that gets to pick winners and losers has a tendency to enhance one's investment savvy. The prudent 'rat probably went long on GE, and shorted BP last year. After all, their own party gave preferential treatment to GE, while simultaneously bashing BP.
Many people shrink at the use of the word fascism, but you are quite correct. Government, which is ultimately not an amorphous thing, but people, have insinuated themselves into a position where they profit from choosing the winners and losers of a so-called free market by rewarding and metting out punishment in an arbitrary and capricious way that benifits them only. Any benefit to society at large, if it occurs, is purely an accidental side effect. And with all the revolving doors between elected office, appointments, lobbyists, and boards of directors, we see the same faces pop up time and again. The population, you and me, are no longer individuals, but “markets”, sources of tax revenue, and breeder stock for the next generation of slaves.
I am John Galt
Now to teach the next generation....
Just like Hillary Clinton’s astounding 1,000% profits on her cattle futures contracts - it is easy to make money when your broker breaks the laws for you and back dates your trades in the books after the gainers and losers are known.
There is no agency that tracks the “average investor’s returns” in the stock market.
As you read it, I suggest replacing the term Salary with financial gain apart from salaries.
I suggest applying its idea primarily to Legislators (rather than the executive).
The brand of Insider Trading practised by our National Legislators must be prevented.
As Franklin says:
Sir, there are two passions which have a powerful influence on the affairs of men. These are Ambition and Avarice; the love of power, and the love of money. Separately each of these has great force in prompting men to action; but when united in view of the same object, they have in many minds the most violent effects. Place before the eyes of such men a post of honour that shall be at the same time a place of profit, and they will move heaven and earth to obtain it.
And, I would add, to keep it.
In this vein, I advocate Constitutional Amendments along these lines:
limiting eligibility to hold legislative office to two of every four years for Representatives, and to six of every twelve years for Senators;
requiring all legislators to be subject to recall;
a complete ban on the purchase or sale of ANY assets by legislators and their immediate family during their (term limited)period of service, and for a period of years afterward;
an ineligibilty to hold any other public office or appointment for a period of years after their term;
the placing of any non-material assets in escrow during their period of service;
a full audit of their taxes each and every year theyre in office and for a period of years afterward;
and so on.
Didn’t the Clintons make $100,000 off $10,000 in less than 6 months? With NO great financial awareness... The ‘press’ wasn’t interested in that story... wonder why?
EVen more than inside trading is this: they know when their decisions will rock the market. I’m sure they talk with their financial agents to trade, sell or hold before any vote they know is in the bag and will cause market calamity.
Absolutely keep your eye on the Democrat congressional staff. They are the biggest money grubbers and theives
Go figure. And one wonders why we have so many problems in this country. When is the whole thing going to blow up in violence over all of the cheating?
Can't we be all for transparency?
Multi-million dollar govt grants to the district are easily converted......deposited in reserve accounts that a bank is then directed to redeposit in another account.
HERE'S HOW MADOFF DID IT When they went back to ID Madoff's assets, they found a super-secret labyrinth of interrelated international funds, institutions and financial entities of almost unparalleled complexity and breadth......with assets and businesses in multiple places overseas that hid thievery, money laundering and tax evasion.
Madoff was running simultaneous scams:
(1) a tax evasion investment scheme for wealthy businessmen ("losing" money is a tax write-off;
(2) money laundering scams;
(3) a protection racket for affinity groups,
(4) aiding and abetting wealthy tax-exempt non-profit foundations to evade US banking laws and the IRS.
(5) hiding money for wealthy businessmen some of which was used for campaign donations (FEC fraud), and non-profit fraud (IRS fraud).
All of this is easily facilitated with co-conspirators directly or indirectly, singly or in concert, using government computers, government computer technicians, by use of financial instruments, investment vehicles, ........utilizing the US mails, electronics, wire transfers, computers.
There are zillions of ways to profit from those do-good multi-million govt programs.
Forbes Magazine says the total bailout bill may exceed $20 trillion. .
REFERENCE Behind The Real Size of Obama's Wall Street Bailout (more like $14 trillion)
Mother Jones | Dec. 21, 2009 / FR Posted January 04, 2010 by E. Pluribus Unum
A guide to the abbreviations, acronyms, and obscure programs that make up the $14 trillion federal bailout of Wall Street.
The price tag for the Wall Street bailout is often put at $700 billionthe size of the Troubled Assets Relief Program. But TARP is just the best known program in an array of more than 30 overseen by Treasury Department and Federal Reserve that have paid out or put aside money to bail out financial firms and inject money into the markets. To get a sense of the size of the real $14 trillion bailout, see our chart here. Below, a guide to the pieces of the puzzle:
Treasury Department bailout programs (controlled by then-COS Rahm Emanuel)
Money Market Mutual Fund: In September 2008, the Treasury announced that it would insure the holdings of publicly offered money market mutual funds. According to the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), these guarantees could have potentially cost the federal government more than $3 trillion [PDF].
Public-Private Investment Fund: This joint Treasury-Federal Reserve program bought toxic assets from banks and brokeragesas much as $5 billion of assets per firm. According to SIGTARP, the government's potential exposure from the PPIF is between $500 million and $1 trillion [PDF].
TARP: As part of the Troubled Asset Relief Program, the Treasury has made loans to or investments more than 750 banks and financial institutions. $650 billion has been paid out (not including HAMP; see below). As of December 21, 2009, $117.5 billion of that has been repaid. Government-sponsored enterprise (GSE) stock purchase: The Treasury has bought $200 million in preferred stock from Fannie Mae and another $200 million from Freddie Mac [PDF] to show that they "will remain viable entities critical to the functioning of the housing and mortgage markets." GSE mortgage-backed securities purchase: Under the Housing and Economic Recovery Act of 2008, the Treasury may buy mortgage-backed securities from Fannie Mae and Freddie Mac. According to SIGTARP, these purchases could cost as much as $314 billion [PDF].
--SNIP--- long read
Federal Reserve bailout programs
Commercial Paper Funding Facility: With the support from the Treasury, the Fed established the CPFF in October 2008 to increase the availability of short-term debt (commercial paper) funding. Up to $1.8 trillion [PDF] was earmarked for the program.
Mortgage-backed securities purchase: In 2009, the Fed earmarked up to $1.25 trillion to buy investments based on home loans.
Term Asset-Backed Securities Loan Facility: TALF provides financing to investors who are buying asset-backed securities. In February 2009, the Fed and Treasury announced an expansion of the program to generate up to $1 trillion in new lending.
Foreign Central Bank Currency Liquidity Swaps: The Fed has provided $755 billion [PDF] for currency liquidity swaps with foreign central banks.
--SNIP--- long read