Public radio reports Lawmakers’ inside advantage to trading
Market Place from American Public Media reported Lawmakers’ inside advantage to trading today:
ALAN Ziobrowski: Senators make significant abnormal returns, some place around 1 percent above the market, 12 percent a year.
Alan Ziobrowski is a business professor at Georgia State University. Using hundreds of personal financial disclosures from the 1990s, Ziobrowski analyzed more than 6000 stock transactions by members of Congress going back up to 15 years.
Ziobrowski: I mean they do better down market, up market. They just outperform the average.
Most lawmakers are not active traders. But Ziobrowski found that politicians who do play the market fare even better than corporate insiders when it comes to picking stocks.
Ziobrowski: We have every reason to believe they are trading on information that the rest of us don’t have.
#*#*#*#*#*#*#*#*#*# BREAKING NEWS #*#*#*#*#*#*#*#*#*#*#
Politicians use their public positions for private gain. They also have been known to make exaggerated claims going into elections and also think the rules do not apply to them.
In other news, water is wet and fire is hot!
I have to agree with Spinal Tap, there’s not much surprise there and we’ve got much more to be frustrated with in DC than a few million garnered from inside knowledge.
There is more to it than garnering a few extra millions. It’s a conduit for influence from Wall Street. And what Lawmakers are doing legally Martha Stewart went to a Federal Pen for. Meanwhile certain people go on and on about some you tube video or other yet dismiss something objective. Weird. Maybe you didn’t read the article.
I think you misunderstood what I was saying. I guess I was not clear in the tone of my email. I work in the financial markets and I find information like this quite incriminating of our elected officials. What I was trying to sarcastically say is, I don’t find this surprising.
My personal belief is quite simply, power corrupts. It does not matter who or what. As long as people are not free to persue their own interests, without fear of violence being used against them, the end result of the system will always be that those in power will that power for their own self interest.
There was an article written to this effect written several years ago that the most successful class of non-professional investors in America was … you guessed it … U.S. Senators. Nothing’s changed. Wonderful health care plan, fantastic pension plan, insider trading information …. what a job!
The Spinal Tap reference was to goes211. “But it goes to eleven!” is a line from a funny movie called Spinal Tap.
The Fed is the problem along with professional politicians. Do away with both and we’ll be much better off. In the late 90s I was outraged at the corruption and insider trading and manipulation by the Fed. I just can’t get excited about the corruption anymore. It’s to the point of personal survival, Tom Gresham, Fairtax, CM and http://www.goooh.com only for me these days. I have no outrage or bandwidth left.
It’s all yours.