Congressional Insider Trading Gone Wild
Back in May we penned, "Why A Hedge Fund Comprised Of Junior Congressional Democrats Should Outperform The Market By 9%" in which the simple conclusion was that insider trading is not only rampant in Congress, but completely unregulated, as it is perfectly legal for Congressional staffers to trade at their leisure on inside information: an exemption which the beta chasing 2 and 20 crowd on Wall Street would sell their first through fifth born to be granted, now that their glaring inability to generate alpha is laid out for all to see. Tonight we were happy to see that 60 Minutes has finally brought this gross and criminal injustice to the general public, and we expect that Congress will promptly legislate itself into actually complying with laws meant for the mere mortals out there. That said, we fully commiserate with the pathological excrement that makes up House of Representative these days: it is indeed a sad day when a Congressional member has to rely on honest work to make their millions as opposed to perfectly legal trading on inside information predicated upon laws that these very congress men and women legislate. Something tells us all the world's banana republics are just staring at the US with sheer and utter amazement as layer after layer of the unprecedented depravity of American society is exposed for all to see.
From 60 Minutes - the part where Nancy Pelosi's face melts is 9:20 in. And speaking of Nancy Pelosi it may be time to revisit: " Moody's Leaked Again: Told Nancy Pelosi Will "Probably Not" Downgrade US Weeks Ago; Did Her Multi-Millionaire Investor Husband Know Too?" and "SEC To Investigate Trades Based On S&P Downgrade Inside Information"... We wonder just how deep the SEC investigation has penetrated for it to have generated not even a peep 3 months later.
And transcript:
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they are already took it all bitchez
i work my azz off all day long today for 15 hours while this comes on right after football and they make a cool million by simply getting a phone call where to put there fuckin front running money,,,,,and i'm the surf for sitting in front of my fuckin computer all day today working.......fuckin pelosi i can't stand these liars
Not merely a nationwide general strike: what if all the serfs went surfing ... ( ! )
Nancy Pelosi. Democratic friend of the working man and wife of the insider trading front running millionaire.
She's BULLISH!
..and she reminds me of Madame from Hollywood Squares c. 1978
At least with Madame you couldn't see the strings. Here they are all too visible.
SCUM SCUM SCUM
How much longer will we allow them to rape and pillage and destroy this once-great country of ours?
Wake up America, elect Ron Paul.
http://www.cnbc.com/id/45249857
Actually don't. Vote for a party, vote for a platform or vote for ideas. There is no one person that can turn America around. I think the focus on the POTUS is a drag on democracy.
Actually do. Party line is what has us here. People who vote the party line have us in a false paradigm two party system where both "parties" represent the banking cartel. Now everyone remove head from the butt.
good point.
Vote for a Party?
Which One? Tea? Libertarian? Republican? Democrat? Socialist? Communist? Anarchist?
I'm really scraping now...
Pox on All Their Houses!
It will soon get to the point where the only useful vote is with lead or sharp edges.
Vote with gold and silver.
Well, you're spot on. But you're also asking a society whose highest ideal is relative ideals and values, to stand for absolute ideals and values....
And when there are bloggers like Barry at TheBigPicture, and Matty at RollingStone, focusing on bankers rather than the failure of regulators, politicians, and the virtual abdication by the US people of the principals upon which this country was founded.... you're pretty much f'd.
Have to say, I'm shocked to see 60 Minutes finally do a piece I find worthy to pass along.
.
I think that Pelosi interview was a stretch. Oops I think that was a double-entendre.
Pelosi is the poster child of what's wrong with America. This 60 mins piece is a great showcase of how rotten to the bone the system is. Even if they pass the stock act, this greedy hypocrites (at least the ones in wall street admit that they are motivated by greed) will still use insider inf as that is what they live for.
fuck you sheep....we gave you martha and raj.....you fuckers are never happy..
Serfs know better: Surfing sucks; don't try it!
Well then, run for office ya dumb ass. Who's stoppin' ya from reaching the pinnacle of the American Dream?
350 million americans, 350,000 elected officials - guess everybody can't run for office. Who'd fucking run the country and do the real work?
Well he could work under an elected official then. Or work bent over for an elected official. Whatever.
To the 12 dimwads who junked me you might find a hint it was sarcasm. Geeze now I gotta go the 'sarc/' route for the slow ones.
( And yes, I feel for the mr. think guy working his ass off. But it's endemic as it has always been. Someone has to work his ass off else we'd be in utopia. Most of us plebes have been there at some stage in life.)
If you have to explain it, perhaps you should stick to slapstick.
I hear ya Mr I think, for the past two months I have been working up to 80 hours a week. Running up to seven machine tools all by my lonesome. Been putting a serious crimp in my ability to trade on the markets. But seriously, everyone should have already known that DC is on the take in every shape and form... It was confirmed for me by Ronnie Raygun and his gipper squad.
Is there any doubt virtually all the top people running our government are fucking criminals? Thus my avatar with the bandit eyes. Yes that is the real Nancy Pelosi.
One of the main reasons for passing well thought up Bills in congress is to make certain individuals in government a lot of money.
Take the Obama Care Bill, Please.
If you think this is the only kind of investment these Congress Critters make, think again children.
One of the recently installed pillagers named Obama has not done too good on his investments in recent days.
Pray this client is not disappointed. Good video in this of infamous Glenn Beck. Sometimes he does good work.
Scandal: Obama, Gore, Goldman, Joyce Foundation CCX partners to fleece USAContinue reading on Examiner.com Scandal: Obama, Gore, Goldman, Joyce Foundation CCX partners to fleece USA - Orlando Orange County Conservative | Examiner.com http://www.examiner.com/orange-county-conservative-in-orlando/scandal-obama-gore-goldman-joyce-foundation-ccx-partners-to-fleece-usa#ixzz1desSTQKF
http://www.examiner.com/orange-county-conservative-in-orlando/scandal-obama-gore-goldman-joyce-foundation-ccx-partners-to-fleece-usa
phuck football. And all professional sports period. the outcomes are already priced in just like the guaranteed return as mentioned above. why else go after "the little boyz" as part of your "college atmosphere"? they're all part and parcel of the same "doomed people" scenario that even the lowliest floor sweeper is trying to effect now.
Did you all see the piece last night? it was rebulicans, like boner and other doing it to so lets be clear it wasn't only Pelosi only. I hate the bitch, but seems both sides get their hands in the cookie jar.
Both sides? Seems like there is only one side.
tried to explain this to brazilians in brazil who had this silly notion that brazil was so corrupt and we weren't. LOL. The corruption in those places is transparent and unsophisticated.
Our senators live like BILLIONAIRES. On a fucking salary of $174k. If this was ANYONE ELSE in this country, the IRS or some other agency would jail them. Capone and the rest of the mobsters got sent to places like Alcatraz for this shit.
That's exactly right. The same corruption that happens in third world countries happens right here in the US. The only difference is that our corruption is more sophisticated and well hidden. The complex bureacracy of government and economy here make it infinitely simple to hide simple corruption. And in some cases (such as this Congressional insider trading shit), the corruption is both widely acknowledged and legal.
Look, imagine going to Bunghole Bunga Bunga parties on only $174K a year. Just think of the quality of skanks you would get in D.C. on that paltry of a salary.
The skanks that don't take the money up front are way cheaper than the ones they marry and take an arm and a leg.
Actually, our corruption is not hidden at all. Unlike the third world, where bribes to police and local judges keep the labor costs of government administration low, U.S. corruption is massive and is written right into the statutes that Congress and the State legislatures pass. While low level corruption is prosecuted, the massive corruption is confined to the very top one hundredth of one percent who have access to the legislative process, where the graft is made legal.
it's called the media. they lie right to our face. "gee, i wonder what they're doing in their spare time?" it ain't tellin' the truth that's fer sure! it's called "covering it up for money to see." what you've seen here is an exception born of the frustration of losing three wars simulataneously. "whose getting paid for this?" is the natural outgrowth of a society told to it's face "you are devoid of any protection whatsoever. we have killed those people...and killed them right to your face." don't get me wrong. there aren't just good people in DC. There are GREAT people in that town. Finding another Senator McCain however...a man whose father was the Admiral on the ship from whence his son was launched to become a prisoner at the Hanoi Hilton---the system doesn't want those people around. Those people "get it" in every sense of the word. We the American people are now living in the Hanoi Hilton. They've brought that thing right back here..."to us." And to think people still believe "it's about the money." That died decades ago!
You can not be serious. McCain is a pile of excrement.
As a retired military officer, I wouldnt say McCain is excrement. But he certainly has proven himself completely unworthy of his stature; he has used his time in Hanoi to leverage the image he wants to create - he willing to f' with medical benefits of retired veterans, but it seems hard for him to find a voice when cutting the benefits of government employees or himself.
This story is only new to MSM, and ZH only figured it out recently; but it is old knowledge for those with any sense of duty to their nation in educating themselves in knowing how their government works.
It must be a truely corrupt situation to have ZH and 60 Min on the same side; still, good to finally have more folks in the fight on this one...
The same corruption that happens in third world countries happens right here in the US.
Yes. It happens everywhere. It has always been this way. And, there is a reason:
The (any) State, by its very nature, IS corruption. One group of men who get to use force on everyone else.... corruption.
Capone, poor sucker, couldn't legislate his crimes. He would be in the Hall of Fame instead of Alcatraz if he could.
"Silence you fucking peasants!" Opening line from the next state of the union speech.
If you're whining about the overbearing situation on how our reps treat us, then quit your yapping, take your own advice and run for office, bigshot. If you don't succeed then perhaps they can find a place for you working under a desk.
Hey give the tough guy shit a rest will ya?
WTF? He's handing it out above to I Think I Need and handing out lame advice. Just can't tolerate hypocracy. One minute he's offloading onto some guy who's pissed at the situation and the next he's makes a quip (with which I concur) in support about the ITIN"s position. Schitzo.
Geeze Al, how long ya been this stupid? I was being sarcastic. There, spelled it out for ya.
For about as long as you've been doing bad comedy.
Do you want to hear the best part? They continue to do this crap even after they leave office. Most ex-politicians (and especially their spouses), continue to be asked to be on the boards of directors of corporations (you know, those boards that are supposed to make sure the company is operated somewhat honestly and look after shareholder rights?). This is where the real insider crap comes from.
Wish I could divulge a bit more info on this, but I do know for a fact that a certain former first lady of a very bankrupt state had a very recent run of picking 11 straight big winners in the micro-cap arena.....wasn't an accident. Again, sorry for being vague......but you all get the point and I just wanted to reinforce that these Mofos haven't slowed down one iota.
I'll post a bit more detail in the next few days if anyone is interested in how this works. Personally, I find it somewhat fascinating.
How much do you think Maria Shriver pulled in on that deal?
PS....CaptA...it wasn't Shriver.
It's obvious you need to get this off your chest. I'm listening, francis. Please, do tell.
Once you're a Jet, you're a jet all the way
from you 1st cigarette, to your last dying day.
Do tell, please...
Suggested Reading:
Make sure to read our "How To [Read/Tip Off] Zero Hedge Without Attracting The Interest Of [Human Resources/The Treasury/Black Helicopters]" Guide
Hello MsCreat,
I've enjoyed many of your posts over the few years I've followed this site. Thanks for the repost of those rules.....thankfully, most of my confidentitalty issues don't involve an employer as I was smart/lucky enough to escape working for Wall Street and only answer to myself, my clients, and my conscious....in no particular order.
My reluctance from specifics comes from an honest regard for client confidentiality and a very serious paranoia of "big brother".
If I were one of "them", I'd certainly be monitoring ZH.
Do tell, tell me, tell me, tell me, tell me, tell me, tell me, tell me, tell me, come on, tell me, oh plezzzzeeeeeee, pretty pleeze.
The first lady from a very bankrupt state......... Shit, you're making it hard. Which of the states is solvent?
Write it up and give it to the Tylers.
Ok, I'll try to put something together today that doesn't infringe on any confidentiality. Apologies for being vague.
I've been advised to continue to be vague on this subject, so no specifics will be forthcoming. This also probably isn't really breaking news or very surprising to most readers of ZH.....anyways, here's how it works:
The politicians are very well connected with venture capital firms. They get their spouses and other relatives named to the boards of many start-up companies, well before they go public. Quite often they get paid in non-traded stock certificates "in lieu of compensation". You can get a pretty big portfolio of worthless stocks this way....just ask anyone connected in VC hotbed Santa Barbara or similar places.
Now that ownership has been established, the politicians are able to direct state and federal monies to these start-up companies, most of which are either wanna-be biotechs or anything "green". With revenue established the stocks then get listed, usually for under $5/share, and, of course, trade with almost no volume. When the company has burned through enough of the government grant cash, it's time to unload. Our heroes will then share their stock "ideas" with their friends which causes a ramp in the price. (I've been copied on a few of these emails where the clowns weren't smart enough to BCC everyone and the list of recipients is quite interesting). After the initial investors are mostly out of the stock, they perform some sort of penny-stock touting and the 2nd set of investors (the priveleged friends) can usually make a nice exit.
Of course, the grants then end and the stock gets relegated to pink sheet status after the founders have made off with enough of the cash. Quite often, the stock then is used as a shell for other fun and games in the future....but that's another story for another day.
To their credit (and readers of ZH may find this amusing) the SEC has actually been cracking down hard enough on these types of shell and VC scams that most brokerage firms won't even custody the assets any more.....with the notable exception of our good friends at Goldman and Morgan Stanley. I can say with certainty that Schwab won't do this anymore and Fidelity is scrutinizing these companies very closely. I am seeing more and more of the VC scam stocks listing over in Europe, mostly on the DAX.
I should also point out that this is very different that the very legitimate real venture capital business, nor is it the same as the normal penny stock scams. These types of "incubator" companies exist ONLY to be ramped and sold and this would not be possible without the political connections.
Anyways, I hope some of you enjoyed the above and I am sorry to have to paint such a vague picture.
Good post - thanks for the update.
let it be written, soviet union lasted for 70 years, current form of usa has lived for 40 years, and i don't think it has another 30 years left in it. endgame very soon....
Like a volcano; it will blow its top to release the pressure from the fire below. Stay way away from the top; it won't be the place to be from.
These people are the top .0001%
Shit. And then you wonder why people turn to a life of crime. All they're trying to do is climb the ladder and improve their lives like our elected representatives.
YES
Looks like a good spot to post a previous comment:
... Everybody wants the political job (perks), but not the consequences of actually DOING the job. They get to give themselves raises, prevent insider trading from applying to them, investigate their own crimes... Well, we all know the list. It's just a country club that keeps raising the membership requirements, and everyone is on the board. How cute.
Good to see you, you don't play with us much anymore. Gettin' tired of this I guess. Seems nothing changes, more truth comes out, and the posts just keep confirming just how screwed we are. What to do, what to do?
I find I am now having to actively turn away from it, not because I don't care, but because I can't find balance and function in my day to day if I keep this stuff in the forfront of my consciousness. We seem to be nutjobs if we are too focused on this stuff. Yet it is a white elephant in the room (I was never good at ignoring them, I was the kid who got her ass kicked for talking about the naked emperor too). How did Noah feel building his ark? At least he knew God had talked to him I guess. It's just a story, but still, I take meaning where I can get it from.
Hope you are doing well, I am fond of you (at least as an idea, a set of pixels that communicate beingness). Many of us are good here. Chindit13 kicked some ass down thread. Wish I could gather us up onto that ark...
Nice to see both of you. In the same mindset but I can't help checking in every once in a while. Keeps me sane.
We're nearing the midnight hour in this little masquerade ball, the moment when the masks come off and the PTB no longer even pretend to be benevolent. They don't want peace, they want quiet.
Think of the opportunity for insider trading off the upcoming debt "super-committee" report. Those congressfucks are going to make a boatload.
But they always need the darkness, if not quiet; white noise will do fine.
They don't want peace, they want quiet.
And they don't want Law, they want Order.
I just watched that piece here on the West Coast and even my bride was amazed at how openly these politicians flaunt the law by exempting themselves from it. How is it possible that Harry Reid who was almost foreclosed on in the 60s is now worth over 3.4 million on a salary of less than $200,000.
He advises he made "good investments". Yup, I am sure he did.
Super job Zero Hedge bringing yet another corrupt cess pool to the forefront by our wonderful Congressmen.
And, in the same vain there are 3 bills in the house that never get acted upon year after year. Guess what they are about.
Yup, reduction in pay, benefits and retirement accounts for House and Senate members. Is there no end to this madness.
so, how do we fix this problem? I don't think we would be worse if 60 days before the Nov elections two registered voters were selected and told to campaign for the job. The one elected would have all of his assets placed in a blind trust, and if at the end of his term (no reelction), he/she is worth more on the day he/she leave office than the day they were elected except for inflation, the ex-congress person is hung, and their family looses everything. They are led of their house naked with no clothes and no money in hte bank.
The congress critters would only do the job of working for the good of the country.
Dr Shivago, the movie, they just had to look at their hands to know if they would take them out and shoot them. Probably wasn't the best idea.
so, how do we fix this problem? I don't think we would be worse if 60 days before the Nov elections two registered voters were selected and told to campaign for the job. The one elected would have all of his assets placed in a blind trust, and if at the end of his term (no reelction), he/she is worth more on the day he/she leave office than the day they were elected except for inflation, the ex-congress person is hung, and their family looses everything. They are led of their house naked with no clothes and no money in hte bank.
The congress critters would only do the job of working for the good of the country.
Transparent voting, no roll calls; all visible in the cloud, downloadable excel format. Cockroaches hate on light for existential reasons.
HEY OWS!!! Do you see that building?
http://en.wikipedia.org/wiki/United_States_Capitol
yes.. that.. one. It's filled with the filthy rich, 1%'ers.. Now go..
If I could "UP Arrow" this comment a million fucking times, I would. Well put.
Larry, I heard that you could "UP Arrow" all night long. At least that was the word around the Beagle.
Tonight we were happy to see that 60 Minutes has finally brought this gross and criminal injustice to the general public
Tip. Of. The. Iceberg.
Precisely. Why are $100s of millions spent on the Presidency?
Tip. Of. The. Tophat.
I thought it was the tip of the Titanic. So hard to tell with CONgress these days.
yep! right after she looks at her portfolio statement and declares: "IT'S BEAUTIFUL!"
God Bless America.
Yes, and sometimes he does it to spite us it seems.
U-S-A! U-S-A! U-S-A! U-S-A!
Why else would someone spend millions of dollars on their campaign for a job that pays 150k. Like this is shocking news to anyone.
You are right about the rest of the world staring in disbelief.
Well, holy fucking shit.. if I could do this, I wouldn't need to work.
I remove my consent to be governed by these mother fuckers..