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Insider Trading By Politicians Should Be Stopped!


Parsad

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Totally agree. However your last two topics here may offend people like Rat Clown since they have a hint of politics....but I love em so keep it coming. 

 

You could also probably link this guy....

 

https://www.barrons.com/articles/sen-pat-toomey-bitcoin-ethereum-51625763320

 

 

If you have a silver spoon job and freeload off the taxpayer, you should be banned from investing in individual securities. Its no different than 90% of financial firms and law firms who prohibit such behavior to eliminate conflicts of interest. And for good reason. WTF do you need to invest for when you make that kind of moneybag the first place? Not saying those people shouldn't invest, but wait til theres no longer the conflict of interest or just stick to ETFs/index funds and managed accounts. 

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Or marrying hedge fund guys who obviously trade ethically and without abusing the system.....I always laughed how jerk off Paul Ryan did nothing with his life besides mooch the taxpayer and he s a multi-millionaire and now PE exec. AOC is a career bartender now wearing Prada and driving Teslas....

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27 minutes ago, Gregmal said:

Totally agree. However your last two topics here may offend people like Rat Clown since they have a hint of politics....but I love em so keep it coming. 

 

You could also probably link this guy....

 

https://www.barrons.com/articles/sen-pat-toomey-bitcoin-ethereum-51625763320

 

 

If you have a silver spoon job and freeload off the taxpayer, you should be banned from investing in individual securities. Its no different than 90% of financial firms and law firms who prohibit such behavior to eliminate conflicts of interest. And for good reason. WTF do you need to invest for when you make that kind of moneybag the first place? Not saying those people shouldn't invest, but wait til theres no longer the conflict of interest or just stick to ETFs/index funds and managed accounts. 

 

Hey politicians serve a purpose and do a job 95% of us wouldn't want to do.  That being said, I don't know about the U.S., but here in Canada, if you are a Member of the Legislative Assembly in a province, Parliament, a Senator or work for a municipal government, you get a gold-plated pension plan that kicks in after like 11 years, and superb long-term health benefits.  I would guess that happens in the U.S. also.  So to crack down on people trading in their ROTH IRA's and making money, while quietly trading on insider information in their own accounts...stinks of hypocrisy!  Cheers!

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3 minutes ago, Parsad said:

 

Hey politicians serve a purpose and do a job 95% of us wouldn't want to do.  That being said, I don't know about the U.S., but here in Canada, if you are a Member of the Legislative Assembly in a province, Parliament, a Senator or work for a municipal government, you get a gold-plated pension plan that kicks in after like 11 years, and superb long-term health benefits.  I would guess that happens in the U.S. also.  So to crack down on people trading in their ROTH IRA's and making money, while quietly trading on insider information in their own accounts...stinks of hypocrisy!  Cheers!

 

Here's an example in Canada:

 

https://www.pentictonherald.ca/news/article_6f7286de-ff86-11ea-8152-97e80e029848.html

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  • 5 months later...
20 minutes ago, Gregmal said:

 

Cant expect her to live on the measly $223,500 salary...I mean her husband Paulie manages a San Francisco based investment firm, no sense in letting those skills go to waste. Im actually kinda jealous, talk about a POWER COUPLE...Nanc takes care of the laws and loopholes and Paulie spreads the chips..

 

To be fair, this happens in multiple forms on both sides of the aisle..it shouldnt even surprise anyone anymore. Politicians feathering their own nests while Joe Plumber socks away his pocket change for retirement, those in the upper echelon tell him he's just gonna have to work harder! Dig ditches till he's 72 and Skip the Lattes, you know, pick himself up by the bootstraps with the work ethic this country was founded on....

 

Should be term limits at every stage of the game and limited options for them to park money...VTI,VOO etc. 

Edited by Blugolds11
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This quasi insider trading is the least of the problem. Most politicians are too dumb to use the insider info anyways, so I guess most money is made through information leakage to people who do. Remember the Republican politician who bought Dupont after the infamous briefing  regarding COVID-19 meeting in January/February 2020? I guess people are pissed about Nancy trades because she is smart enough to make money unlike others.

 

Anyways, this robbery in broad daylight is peanuts relative to the lobbying and politicians doing consulting after “retirement”. This is the bigger issue as they are selling out public interest to whoever pays best.

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So you mean the whole “go get COVID tests” gold rush for big pharma was an orchestrated scheme? And that it’s just coincidental that they wait til after Christmas to tell people, quietly at that, that the testing kits “may not” be reliable for the new variant? Sheeeet. 
 

There’s so much wrong with all of it. All you can do is worry about tending to your own garden. The more insanity and stupidity you look for the more your mind gets blown. And you also realize that it is the way it is for a reason and the whole thing is so much bigger than you or I and there’s nothing you can do about it. 

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This topic reminds me of this video I saw recently: 

 

 

I’m happy to live in Denmark which is number 1 with New Zealand on the corruption perceptions index: https://www.transparency.org/en/cpi/2020/index

 

When politicians fuck up here it’s usually something about eating at fancy restaurants or flying on first class for tax payers money, receiving minor gifts or getting clothes paid by their party/tax money.

There are a few bigger cases, but nothing regularly or they are good at hiding it.

 

The hiding thing made me think of ministers getting high paid jobs afterwards at the farmer lobby. That sucks, but damn it’s a smart move by the lobby, so the ministers know that they will get paid later for being nice to them now.

 

But yeah. Nothing to do about, so no reason to worry.

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On 7/9/2021 at 3:29 PM, Parsad said:

Doesn't matter which party, they all trade while knowing important inside information revealed in government votes, committees, reviews, etc.  Cheers!

 

https://finance.yahoo.com/news/house-speaker-nancy-pelosi-husband-122625921.html

 

I can not make sense of the article.  It says Paul Pelosi exercised call options and that the difference between market price and strike price is all profit.

 

WFT?  How does that make any sense?

 

Is the author simply misunderstanding and/or spinning a yarn?  Did Paul Pelosi tell him what his cost basis was?  Probably a bunch of BS assumptions being made to make the story appear more exciting.

 

In Pelosi's case, the call options he'd previously bought for Alphabet (which were due to expire the day of his purchase) allowed him to buy it at $1,200 a share while the shares closed that day just over $2,500, a difference that accounted for his profit. 

 

And what's this talk about exercising an option being a 'profit'? 

Edited by ERICOPOLY
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Her husband is a hedge fund manager and obviously knows the secret of ITM options aka stock substitute. 1200 strike on GOOG at 2500 expiration is just running a 1.7x levered position….if you guesstimate when the underlying was when he put it on. 
 

The author, yea, doesn’t know what’s going on. 

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Which kinda just unveils some of the other secrets of the hedge fund guys. Even the ones who say they don’t use leverage, use tons of leverage. If the average person knew how much margin and other sorts of leverage via derivatives these guys use, you would’ve had GME type squeezes going on long before Jan 2021. I don’t believe it’s coincidental how the financial literature tells people to avoid using leverage. Those things are best kept on the DL.

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11 hours ago, Gregmal said:

 

It's always a "free-market" issue when it involves politicians.  If you become a Congressman, Senator or President, or MP, Senator or Prime Minister, you should not be able to invest in anything other than fixed income instruments and/or subjected to strict trading limitations, or you have to put your assets in a blind trust.  That should be the deal for getting a platinum pension plan, a position of power, and eventual power private sector positions.  Cheers!

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19 hours ago, Blugolds11 said:

 

Cant expect her to live on the measly $223,500 salary...I mean her husband Paulie manages a San Francisco based investment firm, no sense in letting those skills go to waste. Im actually kinda jealous, talk about a POWER COUPLE...Nanc takes care of the laws and loopholes and Paulie spreads the chips..

 

To be fair, this happens in multiple forms on both sides of the aisle..it shouldnt even surprise anyone anymore. Politicians feathering their own nests while Joe Plumber socks away his pocket change for retirement, those in the upper echelon tell him he's just gonna have to work harder! Dig ditches till he's 72 and Skip the Lattes, you know, pick himself up by the bootstraps with the work ethic this country was founded on....

 

Should be term limits at every stage of the game and limited options for them to park money...VTI,VOO etc. 

 

That is the one thing the founding fathers missed, term limits. Should be 6 years max in both the house and senate. It should be done as a service to your country not as an occupation.

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The completely agree with the need to avoid corruption / insider trading. The cases involving profits from legislation and stock prices swings seem extremely corrupt, and should be eliminated somehow. However, I wonder if a complete ban on skin-in-the-game would be counterproductive, as you could end up with politicians enacting laws which penalise others for making money in a manner they themselves do not, or at least, do not understand.

 

By way of example, in Ireland, where politicians are far less wealthy (single digit millionaires, mainly in the form of rental properties. Few politicians own stocks or ETFs of any significance outside non-taxable pensions), we have been saddled with a ridiculous ETF tax since 2006 (41% exit tax vs. 33% capital gains on individual stocks. Worse, the exit tax applies every 8 years, even if the ETFs were not sold, aka "deemed disposal"). 

This law wasn't introduced by some left-wing radicals, but by centrist parties. In addition, the current Minister for Finance recently defended it as ensuring that "income cannot be rolled up indefinitely in the fund without being taxed" - the fact that it applies to distributing ETFs whose income is actually taxed annually i.e. just like income from rental properties (which aren't subject to deemed disposal on appreciating house prices), seems to have gone over his head..... 

 

So it appears that, due to lack of skin-in-the-game, Irish politicians are completely ignorant of the inconsistencies in the tax regime, and what they are actually taxing. Ironic, as a good chunk of European ETFs are domiciled in Dublin, so they wouldn't have to walk far for a tutorial. I suspect if they actually had active, taxable, stock portfolios, this situation wouldn't arise (though it is investment culture, rather than laws, that are currently constraining them from having them).

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