Monday, November 14, 2011

Insider Trading Laws Don't Apply to Congress?!?

On Sunday the TV show "60 Minutes" did an excellent report about how "insider trading rules," that apply to EVERYONE, do NOT apply to members of congress.  Anyone who buys or sells investments while in possession of information not available to the public goes to jail - unless you are a member of congress.  And, no surprise, members of congress seem to have a very good stock and option trading record!  

Just think how much money you could make if you could do things like, buy stock in the initial public offering of VISA (the credit card company) knowing that highly restrictive credit card legislation was going to die in the House of Representatives? Nancy Pelosi, the Speaker of the House at the time, did just that!  

Or, what if you could buy a whole bunch of stock in health insurance companies the day before congress revealed legislation that would significantly help health insurance companies? John Boehner, the current Speaker of the House, did just that!  

How about buying a bunch of "put options" (betting the stock market would go down) after attending a confidential meeting where Federal Reserve Chairman Ben Bernanke first revealed the impending financial crisis?  Find out which member of congress did that by clicking the video link below.

Every voting American needs to watch the beginning of this CBS 60 Minute report.

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