Day: May 26, 2011

Why Is This Not “Insider Trading”?

From the VOMITORIUM

We hear all about the woes of the congress people….how they have to live in their office to save money….but there seems they are finding ways to make ends meet……

This from an article in the HuffPo…….

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.

The researchers, Alan J. Ziobrowski of Georgia State University, James W. Boyd of Lindenwood University, Ping Cheng of Florida Atlantic University and Brigitte J. Ziobrowski of Augusta State University, noted that the circumstances are ripe for abuse.

“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.

That smacks of “insider trading” in my mind……let us go to the approved definition….

Insider trading is the trading  by individuals with potential access to non-public information about the company.  However, the term is frequently used to refer to a practice in which an insider or a related party trades based on info of  non-public information obtained during the performance of the insider’s duties at the corporation, or otherwise in breach of a fiduciary or other relationship of trust and confidence or where the non-public information was misappropriated from the company…….

Sorry and I feel for the poor abused Congress people (and yes…that is sarcasm)…..They are PIGS…….but if they are trading on info that they got while serving in Congress….then they are criminals and guilty of inside trading…..this should be turned over to the DoJ immediately!

More Free Trade Pacts?

Back in the 1990’s, I wrote several pieces about what the proposed free trade acts would do to the economy in this country…I believed then that they would do NOTHING good and on the contrary would cost American jobs and loss of industry…of course, in those days I was called a commie for NOT wanting to see a free trade act….not much has changed……….I am still called a commie more likely a socialist but not many know the difference……why do I rehash the past?

Well, guess what?  The Obama admin is proposing a…..wait for it……a free trade act……that is right…yet another free trade agreement……

This time it is agreement with Panama, Columbia and South Korea and the White House has said that it will create American jobs…..really?  Is that not what NAFTA was suppose to do?  Don’t hurt yourself…..that was the promise.  Now if anyone recalls, candidate Obama said that reforming NAFTA to make it more worker friendly would be a priority for his admin…..that was pretty much a lie…there has been NO reform of NAFTA.  It seems that the Obama admin has allowed corporate America to write up these newest proposals….and guess what?   It will put millions of Americans back to work……REALLY?

If that is true why would they say this?

The Obama administration said on Monday that it would not seek Congressional approval of free trade agreements with Colombia, Panama and South Korea until Republicans agree to expand assistance for American workers who might lose jobs as a result… The announcement puts the White House in line with Congressional Democrats who have made expanded benefits a condition of their support for the trade deals.  (Quoted from the NY Times)…

Let me see if I have this right?  The trade agreements will create jobs but before it goes into effect the Congress must make provisions for any job loss that is created by the agreement……..”The administration is simultaneously selling the trade deals as engines of job growth while admitting that the deals will likely kill so many American jobs that Congress must preemptively cough up money to clean up the corresponding economic wreckage.”  (Quoted David Sirota in Salon.com)….

You still do not think it is all one big game in Washington?  Just once I would like for the American people to get all the info before they go off half cocked….I know….a silly notion!