Congressmen and Senators do insider trading

[Azrael]

from the article:

"We find strong evidence that Members of the House have some type of non-public information which they use for personal gain," the authors concluded.

But, they add, House members' excess equity returns trail those of Senators during the same time period, according to their previous study of investment return of the upper house — some 85 basis points a month. Annualized, that figures to 10.7% per year after compounding.

The smaller returns of Congresspersons compared to Senators "are due presumably to less influence and power held by the individual Members." It's simple math; there are 435 House Members compared to just 100 Senators, so power is more concentrated in the upper house.

Let me translate from the proper academic usage. Members of Congress used inside information gleaned from their positions of power to enrich themselves in the stock market. The more powerful Senators enriched themselves more than members of the House. Like Captain Renault in Casablanca, I'm shocked, shocked!

[YMix]

[Tinker]

Insider Trading laws are bizarre. How do you qualify as an Insider? When you know a lot about a stock, are you not allowed to make money off of it then? The natural course of having inside information is that it is going to make you more powerful, that's just it's nature. How do you fight against people gaining power from information?

[Hoosiernorm]

[Hapax Legomenon]

Mouse tactics, bitchez!