Tuesday, November 29, 2011
2 Amazing Stories in the Past Week on the Legality of Trading on Insider Information in D.C. - and Not Just in Congress
Posted by Mark at 9:55 AM TweetThis
Lost in the 60 Minutes piece a few weeks ago [Nov 13, 2011: (Video) Trading on Inside Information? It's Cool if You are in Congress] about the 'benefits' Congress and its staffers receive in terms of trading on inside information, is the rise of a subsector of 'information' to be sold to hedge funds, using these same channels in D.C. It's so outrageous on the face of it - but apparently perfectly legal. There was a piece on this about a month ago in the WSJ - Hedge Funds Pay Top Dollar for Washington Intelligence.
Now if this was just information that was available to anyone it would be one thing, but it appears its the same information that Congress and staffers are privy to, but can be sold to the highest bidder. Hence the name 'smart money' given to the hedge fund class I suppose.
But in the past week we have 2 stories that are even more egregious.... if possible. I didn't have time to post this story last week regarding the Federal Reserve giving 'tips' to the superior class of investors.... but combined with another barn burner from Bloomberg Markets magazine on Hank Paulson tipping off the illumanti from the squid Goldman Sachs & Eton Park hedge fund on what would could happen to Fannie and Freddie, WHILE telling the public (and Congress) a totally different story.... well folks, you just can't make this stuff up. And yes that was a run on sentence of epic proportion but trust me, you will be incensed too at what apparently is 'cool' by legal standards, as long as your part of the D.C. set and/or have enough money to access such 'market movers'.
---------------------
First to the piece on the Fed.... long article
last line,,,,,,,,,,,,,,,,And the rest of the very detailed article goes on from there. I myself cannot continue posting it due to the puke inside my mouth. All in another day of 'free market capitalism' and 'free and transparent markets'.
http://www.fundmymutualfund.com/2011/11/2-amazing-stories-in-past-week-on.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+FundMyMutualFund+%28Fund+my+Mutual+Fund%29
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
| 