Members of Congress Get Abnormally High Returns From Their Stocks

Just another fine example of why the government puts their own and corporate needs before the needs of those that they were elected to represent.

Members of Congress Get Abnormally High Returns From Their Stocks

Four university researchers examined 16,000 common stock transactions made by approximately 300 House representatives from 1985 to 2001, and found what they call "significant positive abnormal returns," with portfolios based on congressional trades beating the market by about 6 percent annually.

What's their secret? The report speculates, but does not conclude, it could have something to do with the ability members of Congress have to trade on non-public information or to vote their own pocketbooks -- or both.

A study of senators by the same team of researchers five years ago found members of the higher chamber even better at beating the market -- outperforming it by about 10 percent, an amount the academics said was "both economically large and statistically significant."

"In the course of performing their normal duties, members of Congress have access to non-public information that could have a substantial impact on certain businesses, industries or the economy as a whole. If used as the basis for common stock transactions, such information could yield significant personal trading profits," they wrote.

This is tantamount to insider trading and should be illegal, however there is no legislation to prevent them or encourage them to do otherwise.

There have been a few bills that have been introduced to attempt to address the concern, but when you are consistently outperforming the markets why would they?

It would mean that they couldn't abuse their positions for financial gain.

The system is so corrupt on so many levels to the point where the fine Senators and Representatives financially gaining from this practice won't even see it as unethical.

I guess so, all that inside info would make my port look great too.

And if I did it its a crime, but when they do it........ its the words of "I Been Blessed" as if.....

they word;s a crazy place.....

thanks for the info tooo

what do you expect...those in power tend to abuse it for their own personal gain...it's ridonkulous

And people sit and type angry replies to each other over Obama, Bush, Clinton etc.. Sheep.. I don't believe in that Political religion everyone gets all uptight about. It's a game that you are either playing or watching.

This is yet more of the same. Those in power utilising said power to ensure that they will remain in power. If money is power, then you have to do the math, those in power are going to make more money than those without.

How can such an obviously rigged and impossible game become a legitimate sport let alone the method of government for most of the civilized world? Are we not just chasing ourselves in circles?

Originally posted by klarkowski67
And people sit and type angry replies to each other over Obama, Bush, Clinton etc.. Sheep.. I don't believe in that Political religion everyone gets all uptight about. It's a game that you are either playing or watching.

That's exactly it right there, while we're distracted with UFOs and Birth Certificates, they keep on making the money.

Is it any wonder why their cohorts at Goldman are still not in jail? Couldn't have anything at all with the possibility that the Senators and Representatives also directly profited?

It wasn't a case of "Too Big To Fail", it was clearly a case of "I'm still making money too."

Well, isn't that special.

Not surprised. And that's the stuff that they could find. Who knows what they have in their untraceable accounts.

Well,they are all crooks and they go up there to get rich and accumulate power....so what else is new about them?

More tangible evidence of the hand around our throats. Not sure why we are all still just sitting around anymore tbh.
Seems like there's a lot to be doing.....................there needs to be a community formed once and for all. Not for physical power, but so we can collectively be heard loud and clear.

Originally posted by Homedawg
Well,they are all crooks and they go up there to get rich and accumulate power....so what else is new about them?

You're right, but since the majority of the sheep won't believe it till they see it, this study presents a hope that it can gain some traction in the MSM and open a few more eyes.

It's not new at all, but the way they're doing it deserves as much light that can be shed on it as possible.

reply to post by Hijaqd


Ok...good point

reply to post by Hijaqd


I wish that the SEC would actually investigate these people. Think about it, to you or me, a Congressman gets a good paycheck, but they may not be elected next time around, so of course they pad their portfolios. As far as I'm concerned, they are out in the open crooks.

ok yeah whatever

the huffington post come on people

george soros funds the huffington post and has been to the white house numerous times

care to guess how much soros has made?

sorry im not buying what you people are selling.

Originally posted by TDawgRex
reply to post by Hijaqd

 

I wish that the SEC would actually investigate these people. Think about it, to you or me, a Congressman gets a good paycheck, but they may not be elected next time around, so of course they pad their portfolios. As far as I'm concerned, they are out in the open crooks.

You and me both, but here's the rub, in most instances it's the very same profiting Congressmen that have to order the SEC to do the inquiry.

That's just not gonna happen on it's own, we have to bring this to the attention of as many folks as possible so that they are faced to do something about it or face political consequences.

They most definitely value the greed, but they love the power the office affords them and given the choice they will try to stay in power (of course they still benefit from lobbyists and other off the record transactions)

It is true, that "insider trading" has never been outright outlawed for Congresspeople.

They "say" they really, really want to get a resolution passed, but there are always things like Gay Marriage, Tax Break Extensions, and recognizing National Leave It To Beaver Day that take priority.

Check this out from the Wall Street Journal posted in March:

Bill Would Bar Insider Trading for Capitol Hill

When will it end?

reply to post by neo96


The article is Huffpost, but the research is not, that's what I'm pointing out here.

I'm just not gonna shoot down the message because of the messenger (my Jimmy John's sandwich was good, but the delivery driver was a tard - doesn't make my sandwich any less tasty ), I don't care for Roger Ailes or Soros, don't care Democrat/Republican, don't care Liberal/Conservative, these are the tools they use to keep us at each others throats instead of getting at ALL of theirs.