4 ms·
Their insider trading a very small problem compared to the problem of the perverted incentive to steer legislation in a direction that helps their portfolio.
by csee 5y ago
Their insider trading a very small problem compared to the problem of the perverted incentive to steer legislation in a direction that helps their portfolio.
- vineyardmike 5y agobased on what metric? Do we know have evidence of them voting for their own portfolio vs trading their info? Based on data i've seen, it seems more likely that they're insider trading. (Except for republicans trying to support fossil fuel legislation...)
- csee 5y agoIt is far more likely that they're insider trading, but the point is that the magnitude of the negative consequence is vastly different. If they insider trade and make $5 million, that's money stolen from other market participants. Bad, for sure, but the scope of the damage is limited to that stolen $5 million. If it corrupts policymaking by creating a conflict of interest, the scope of damage is uncapped.
- vineyardmike 5y agoI completely agree! The legislative capture of bad decisions is far more dangerous than them "stealing" from wallstreet.
- csee 5y agoI agree with what you said, except the part about stealing from "wall street". Most of that money is stolen from regular people's investments and pension funds.
- vineyardmike 5y agoNot sure i even agree with that. Most markets are not 0-sum, and taking a "long" position (congresswomen buying low, and selling high) won't cause anyone harm unless they took a short position on the asset - which hopefully most people's regular investments don't do.