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!