[HN Gopher] Unusual Stock Trading by Whales in US Congress
       ___________________________________________________________________
        
       Unusual Stock Trading by Whales in US Congress
        
       Author : seriousquestion
       Score  : 754 points
       Date   : 2021-04-15 15:26 UTC (7 hours ago)
        
 (HTM) web link (unusualwhales.com)
 (TXT) w3m dump (unusualwhales.com)
        
       | foolinaround wrote:
       | Where there is a will, there is a way!
       | 
       | As long as we have crooks as our representatives, they will find
       | various loopholes to cheat.
       | 
       | Caesar's Wife Must Be Above Suspicion.
       | 
       | When we find such folks, since the media won't ask those
       | questions, the constituents must call/write/email their offices
       | and know that they are being watched.
        
       | smooth_remmy wrote:
       | Isn't there a delay in seeing these trades? They're reported 2
       | months after they happen, right?
        
       | hackeraccount wrote:
       | why doesn't someone create an index fund that just track
       | congressional trades?
        
         | cwkoss wrote:
         | there is reporting lag, so by the time you know about an
         | opportunity it is usually gone
        
           | macinjosh wrote:
           | Only government bureaucracy could convert what is essentially
           | class based market information access into something benign
           | sounding as "reporting lag". Maybe "scraps" is a more apt
           | term?
        
       | Sniffnoy wrote:
       | What the hell is with the interface on this site? I can't select
       | text, everything is acting funny...
        
       | AlexTWithBeard wrote:
       | The very minimal thing each and every one of us can do is to
       | write to their representative [1] and senator [2] expressing
       | concern over the issue.
       | 
       | [1] https://www.house.gov/representatives/find-your-
       | representati...
       | 
       | [2] https://www.senate.gov/senators/senators-contact.htm
        
       | adam12 wrote:
       | Clear corruption.
       | 
       | https://www.youtube.com/watch?v=xNDHiiJaxes
        
       | ffff0ffffff wrote:
       | How about we just line up every politician fucking KILL THEM ALL!
        
       | floatingatoll wrote:
       | If the author of this site is reading this, you could add a
       | redirect for this URL with either trailing comma or trailing
       | comma-and-whitespace, to catch the cases where people copy a
       | little bit too much to the clipboard:
       | 
       | https://unusualwhales.com/i_am_the_senate,
        
       | gnabgib wrote:
       | The title is "On Life, Liberty, and Stock Markets" (h2.. most
       | prominent on page), or "Unusual Whales" (html.head.title). While
       | this title might be a synopsis, it doesn't exactly hit the
       | guidelines[https://news.ycombinator.com/newsguidelines.html]
        
       | macinjosh wrote:
       | I am shocked, shocked to find there is gambling going on in here!
       | /s
       | 
       | In all seriousness, if we are talking about privilege this
       | privilege the ruling elite has to participate freely in insider
       | trading behavior is bonkers. It likely just isn't the politicians
       | themselves. Their staffers, confidants, and so on could all be
       | benefiting.
       | 
       | If Presidents are goaded to put their assets in blind trusts when
       | taking office why shouldn't principal members of the other two
       | branches of governments be obliged to do the same?
        
       | magwa101 wrote:
       | This is brilliant. This should be illegal. CEOs and anyone with
       | insider info have trade "windows", or are put onto "program"
       | trading. This should absolutely be happening to these servants.
        
       | voidfunc wrote:
       | If you want to get rich go into politics.
        
         | r00fus wrote:
         | Fixed: if you want to get rich, already be rich. If you want to
         | get into politics, it helps to be rich.
         | 
         | Takeaway: just be rich, and you can do whatever you want.
        
       | hartator wrote:
       | It will be fun to have an index fund tracking this. Can't beat
       | the corruption? Just buy their market!
        
       | mabbo wrote:
       | The very people whose job it should be to stop this sort of thing
       | are the ones who are profiting from it. How do you change this?
       | 
       | No really, how can we force congress to change the rules so that
       | elected officials can't profit from inside information? Why would
       | they ever vote for such a bill?
        
         | aaomidi wrote:
         | If this starts making a stink, they're going to create the
         | ability to not report your stock purchases.
        
           | throwaway1777 wrote:
           | I think opposite is more likely. After the GameStop fiasco
           | there is a push for more transparency, not less.
        
           | Scoundreller wrote:
           | That's what's happening with flight tracking info.
           | 
           | It got too easy to see who's flying their private jets and
           | where.
           | 
           | Meanwhile if you travel by car, get bent.
        
         | nickthemagicman wrote:
         | It's impossible.
         | 
         | Who watches the watchmen?
         | 
         | And Democratic party believes that bigger gov't is the solution
         | to many of our problems.
        
           | dlp211 wrote:
           | Show me a country with little government that is successful.
        
             | partiallypro wrote:
             | Comparatively speaking, most Western countries.
        
               | michaelmrose wrote:
               | Start with the 3 best examples you can name and we can go
               | over how regulated various industries are, what
               | percentage of income is paid in taxes, and what
               | percentage of their GPD is non military government
               | spending.
        
               | partiallypro wrote:
               | There is a lot more to governance than expenditures and
               | safety nets. I'm starting to think we've been in a free
               | society in the west so long that people have simply
               | overlooked the history of large governments stifling
               | industry and life. Limited government is a very big thing
               | in the West, even in countries with very generous social
               | programs.
        
               | michaelmrose wrote:
               | Could you at least pick one so we can talk specifics?
        
               | dlp211 wrote:
               | This is a joke right? Based on what measurement do most
               | Western countries have little government?
        
               | NoImmatureAdHom wrote:
               | Many people constantly deride them for lack of regulation
               | of X, where X is something the speaker believes has huge
               | negative externalities.
               | 
               | Also, I'd point to a place like India for "big"
               | government: the government tries to run too many things
               | and does a bad job on average.
        
           | wpietri wrote:
           | If it's impossible to have an effect, then every government
           | would be equally bad at this. But that's not the case.
        
         | michaelmrose wrote:
         | In some states the people can literally make the law via public
         | initiatives. If you don't have that process at home push for
         | THAT. Looking at this map there are a lot of states that need
         | to work on step 1.
         | 
         | https://ballotpedia.org/Initiative_and_referendum
        
         | aaomidi wrote:
         | > No really, how can we force congress to change the rules so
         | that elected officials can't profit from inside information?
         | Why would they ever vote for such a bill?
         | 
         | The recent Black Lives Matter protests have taken a far more
         | aggressive turn against systemic issues. Systemic issues such
         | as the economy, the stock market, policing as a whole, and
         | capitalism in its essence. Donating to bail-out funds, joining
         | the protests, increasing awareness in the problems our economic
         | system has created for us without proper good-faith regulations
         | is all helpful.
         | 
         | You can't reform corruption to this level. You need to cut it
         | out and start over.
        
         | giantg2 wrote:
         | "The very people whose job it should be to stop this sort of
         | thing are the ones who are profiting from it."
         | 
         | Welcome to the system. This is pervasive in many other aspects
         | as well (court, police, DA, etc).
        
           | skohan wrote:
           | Checks and balances are supposed to address this issue. I
           | think the only one which really does the job here would be
           | the right to initiative/referendum. That or an electoral
           | solution, but that one's really hard since new legislators
           | will be incentivized to maintain the status quo. You would
           | almost need a new party defined around that one issue, which
           | is hard to imagine in the US.
           | 
           |  _Maybe_ an executive order could also prohibit this? I 'm
           | not sure.
        
             | giantg2 wrote:
             | "Maybe an executive order could also prohibit this?"
             | 
             | I don't think this will help. I feel that executive orders
             | are misused and abused today. They are really only only
             | supposed to be executive guidance on how to enforce or
             | implement a law. Instead they are being used as redefining
             | law or even ignoring them.
        
         | Zelphyr wrote:
         | We have to do the work. We have to educate ourselves on the
         | issues which means reading bills as they are going through the
         | process and being voted on, calling and writing our
         | representatives to tell them how we want them to vote on those
         | bills.
         | 
         | I have family who just love to complain about what legislators
         | are doing and how they're voting but have not once, ever,
         | actually contacted their representative about these issues. Not
         | once have they actually read the bills and tried to understand
         | them. It's all based purely on whatever news channel they're
         | watching. Yet, they somehow think that through all that
         | complaining they're actually accomplishing something.
         | 
         | I know my family isn't unique in this. I was just talking to a
         | contractor who is doing work on my house that started in on
         | this nonsense.
        
         | seph-reed wrote:
         | The only reasonable way out is to create our own systems. You
         | have to stop thinking top-down.
         | 
         | Liquid democracy is something that can be built from the ground
         | up, and has the potential to deprecate our modern system.
        
           | ek750 wrote:
           | I think I agree in theory, but I think we've seen in practice
           | that people are easily controlled by mass media. Wouldn't we
           | just be moving the locus of control?
        
             | seph-reed wrote:
             | Do you know what liquid democracy is?
             | 
             | It's a form of representative democracy, so it should be
             | able to avoid the issues of oligarchy (being centralized
             | and easy to corrupt) as well as the issues of full
             | democracy (where every idiot has a say worth any experts)
        
               | cubano wrote:
               | Why would you believe that both the individual voters and
               | their delegates wouldn't be susceptible to almost all the
               | same corrupting and manipulative factors that plague
               | voting systems today?
               | 
               | The OP is correct...spending in mass media on the various
               | issues would almost surely allow the purchasing of voter
               | mindshare just exactly as advertising today drives sales
               | of almost identical branded products for inflated prices.
               | 
               | Don't get me wrong...in general I like the idea of
               | "liquid democracy" (I remember it being called
               | "Superdemocracy" back in the 80's when MajorBBS creator
               | Tim Striker very much lobbied for its creation)...but it
               | would be foolish to believe that the same forces that
               | corrupt modern politics wouldn't be able to corrupt it as
               | well.
        
               | seph-reed wrote:
               | Corruption is still possible, but the real trick to
               | liquid democracy is that every stage is a form of
               | escalation with the potential for correction.
               | 
               | Let's take two scenarios:
               | 
               | 1. a vote is being passed "up" and crosses an extremist
               | channel, it'll likely get locked in and come out even
               | more extreme than it started. extremists tend to look up
               | to people who are even more extreme. when this happens,
               | there's a good chance the person who's vote it originally
               | was will be upset with where it ends up
               | 
               | 2. a vote is being passed "up" and crosses an
               | intellectual/thoughtful person, it'll likely get locked
               | into the academic/altruist channel and come out with an
               | extreme subject expert. this is the ideal outcome.
               | 
               | Basically, at any point where the vote is being passed up
               | it can hit one of these channels and get locked in.
               | There's massive (and immediate) drawbacks to letting your
               | vote hit an extremist, and massive gains to passing to
               | someone who's more intelligent and thoughtful.
               | 
               | While you're totally right about peoples first vote being
               | super manipulable, each successive pass off has an
               | opportunity for escaping that mind control. And once it
               | does, it'll stay out.
        
         | sethammons wrote:
         | my naive solution: politicians become monks. They go without.
         | They are provided modest housing and budgets. I'm sure there
         | are zounds of issues with it, but I like to imagine servant
         | leaders who go without to do more for the communities they
         | serve.
        
           | mustafa_pasi wrote:
           | The Catholic Church tried this and it did not work. Monks and
           | nuns still become greedy, still compete for positions of
           | power and still abuse their power when they get it.
        
             | NoImmatureAdHom wrote:
             | Maybe it helped for a while?
        
           | wpietri wrote:
           | I'd be happy with that, but perhaps an easier solution is to
           | make them moderately wealthy. Pay them a top 5% salary with a
           | guaranteed pension for life, plus mandatory open finances for
           | life. Then there's much less incentive to resort to graft.
        
             | socialist_coder wrote:
             | 100% Agree. Salaries for elected officials should be far
             | higher and then make punishments for this very very strict
             | so there's zero incentive to graft.
             | 
             | The people running our country should not be making less
             | than any typical c-staff or high level executive. They
             | should be making lawyer/doctor/c-staff level money.
        
             | souprock wrote:
             | Make that a "top 5% salary" from the pool of Fortune 500
             | CEOs, and it might do the job.
        
             | sethammons wrote:
             | Love it, that's the other side of the coin I like
        
             | michaelmrose wrote:
             | The income for a US senator or congressman is already
             | literally exactly at the 95th percentile at 174,000. Making
             | someone wealthy doesn't remove their incentive to gather
             | more wealth it gives them a stake and incentive to be more
             | effectively corrupt.
        
               | socialist_coder wrote:
               | 175k is not enough... it needs to be 300k at least. maybe
               | 500k. Something high enough that the risk-reward for
               | corruption is less attractive. 175k is a nice life but
               | not even remotely enough to have the lifestyle you'd
               | expect for someone running our country.
        
               | michaelmrose wrote:
               | It is the nature of ambition not to be satiated. people
               | making millions of dollars per year want to make
               | billions. Billionaires strive to exceed their peers. Our
               | leaders already have a lot to lose. Predictably most of
               | our corruption isn't high risk blatant illegality its the
               | boringly legal influence peddling where regular donations
               | buy your "totally legitimate" interests and concerns
               | additional consideration by decision makers instead of
               | paying n dollars for a particular law.
               | 
               | There is no reason to believe paying them 2-3x as much so
               | they can be really wealthy would lead to electing better
               | leaders.
               | 
               | Our lawmakers make 175k directly in salary and aprox 1
               | million dollars for staff and 143k for office expenses.
               | This is not including the cost of the lifetime pension
               | they will qualify after only 5 years and lifetime health
               | plan for themselves and spouse after 10 years in the
               | house or 8 in the senate. Hint I know they pay I think
               | 28% of the cost of their gold plan.
               | 
               | Lifetime a 2 term senator will cost the tax payers near
               | 18 million dollars in total.
        
             | zucked wrote:
             | I've always wondered about this. These are people who we
             | elect to do a job - one that we expect and need them to do
             | well. I wonder what would happen if their base salary was
             | something higher than current - perhaps $300k. They receive
             | the maximum healthcare coverages available to the majority
             | of Americans. Pension is set at $100k/year at retirement,
             | no strings attached.
             | 
             | BUT - In exchange, you'd have to agree to some very
             | restrictive governance while in office. Example:
             | 
             | - No trading of specific investment vehicles, you may
             | invest a maximum of ($x) per year in the following options
             | (ETF, Treasuries, etc.). This goes for any immediate family
             | members.
             | 
             | - Congressperson's income can only consist of the US
             | Government salaries. Any income from previous book deals,
             | consulting, etc, must go into a blind trust that can only
             | invest in the aforementioned investment options.
             | 
             | I wonder if that is enough of an incentive to still attract
             | sharp minds while perhaps incentivizing them to work more
             | for the people and less for themselves.
        
             | bosie wrote:
             | you sure you meant top 5%? US congress is already easily in
             | the top 5% of salaries
        
           | slaymaker1907 wrote:
           | That doesn't really solve the problem because how do we make
           | them become monks? We already have a blueprint on how to hold
           | them accountable: hold them to the same standard as those
           | working in financial services with access to PII. Essentially
           | make it impossible for them to be active traders; they can
           | even still invest in ETFs and hands off advisors/roboadvisors
           | like Betterment.
        
             | pishpash wrote:
             | Even then, do you want people who are incentivized to pump-
             | and-dump the macro market during their term? You'd almost
             | need to enforce this for 10 years or more, even if it goes
             | beyond their term.
        
           | skapadia wrote:
           | I've had a similar thought on many occasions, but even then,
           | they will find alternative ways to acquire wealth and power.
           | The clergy of many religions, in aggregate, have a lot of
           | wealth and power, even if the wealth is not directly in their
           | name.
           | 
           | No system can prevent humans from exercising their basic
           | instincts, emotions, urges, needs, and wants.
        
             | passerby1 wrote:
             | In my opinion the only thing stops that is the fear of
             | punishment.
             | 
             | But then the initial question arises: how to prove that
             | there was a broken law in gaining more wealth/power (by
             | chance vs intentionally).
             | 
             | It feels like this question was asked for thousands of
             | years.
        
         | jimbob45 wrote:
         | Pragmatically? Make such a proposal go viral and delay its
         | enforcement for 6 years so that current senators don't feel the
         | heat until it's too late.
        
         | anonymouswacker wrote:
         | Since the media and intelligence agencies are great at
         | vilifying any dissent (see "Capitol Riot" and how difficult it
         | is for them to even get representation), there is no hope. The
         | US is not going to get better as corruption is rampant and most
         | are in the dark or powerless. Politicians like Bernie Sanders
         | give hope, but they are few and far between, and muzzled.
         | Perhaps the migration away from centralized news sources that
         | are filtered by advertisers & intelligence agencies (see
         | Manufacture of Consent) could help move us towards actually
         | having information in the mainstream so that we can have a say,
         | since our election system is rigged by the two right-wing
         | parties, but there are too many decision makers still reading
         | NYT and WSJ. Social media is clamping down on "fake news". The
         | majority in the House/Senate are trying to push censorship for
         | this reason, and now they are even trying to change the
         | judicial branch to suit their whims.
        
           | cassepipe wrote:
           | Well the Capitol riots were not just any dissent. They were
           | the gathering of a mob of people with crazy conspiracy
           | theories (that very probably would not even agree with each
           | other) as part of mediatic stunt (just not "the media") to
           | give legitimacy to the claim the election had been stolen so
           | the Republican party could suck up more money from its base
           | for "the cause". I have myself much respect for Bernie
           | Sanders and people fighting for more democracy and more
           | equality please, please don't put them in the same bag than
           | people being manipulated into giving time and money for
           | imaginary causes.
        
           | chrisco255 wrote:
           | > the two right-wing parties
           | 
           | They are neither left nor right. There is a middle elite
           | group that exploits politics on either side of the aisle to
           | maintain power. And that's all it is. And they get filthy
           | rich, but so too does the CCP which is left-wing. Taking
           | advantage of power for personal gain is not an exclusive
           | domain of one wing or the other. At any rate these
           | oversimplified analogies break down among many lines upon
           | closer inspection. There are elite insiders and then there's
           | the rest of us.
        
         | maxwell wrote:
         | Constitutional amendment?
        
           | gumby wrote:
           | That's a very blunt instrument and difficult to get the
           | wording correct.
        
             | throwaway0a5e wrote:
             | See also:
             | 
             | "Infringed"
             | 
             | "Papers and effects"
             | 
             | "not delegated to the United States by the Constitution"
             | 
             | And many others....
             | 
             | No matter how clear you are they just ignore it like it's
             | not there.
        
           | mabbo wrote:
           | And who would be voting on those?
           | 
           | > An amendment may be proposed and sent to the states for
           | ratification by either:
           | 
           | > The U.S. Congress, whenever a two-thirds majority in both
           | the Senate and the House of Representatives deem it
           | necessary; or
           | 
           | > A national convention, called by Congress for this purpose,
           | on the application of the legislatures of two-thirds of the
           | states (34 since 1959). The convention option has never been
           | used.
           | 
           | https://en.m.wikipedia.org/wiki/List_of_amendments_to_the_Un.
           | ..
        
             | [deleted]
        
             | meepmorp wrote:
             | Participants in a constitutional convention?
        
             | chrisco255 wrote:
             | The state national convention route is the most likely
             | route to work if you really want to reign in Congress.
        
           | michaelmrose wrote:
           | How about initiative and referendum in the 26 states that
           | have such processes and agitating for such processes in the
           | states that don't.
        
         | WhompingWindows wrote:
         | We have to educate the broader populace about the issue, then
         | politicians will use the issue to gain political capital, win
         | elections, and maybe change legislation and practices.
        
         | AtlasBarfed wrote:
         | "No really, how can we force congress to change the rules so
         | that elected officials can't profit from inside information?
         | Why would they ever vote for such a bill?"
         | 
         | Well, those people profiting off of it would have to vote
         | against each other's interests.
         | 
         | Money wins elections. Not issues, which are just window
         | dressing. The media cartels own your attention for all your
         | waking ours and, as MiB said, while individuals are rational
         | and sensible, people (that is, the voting electorate) are
         | easily scared, easily duped, and increasingly easily
         | controlled.
         | 
         | So it's not just "vote against being rich", it's also "vote to
         | lose the next election".
        
         | intrepidhero wrote:
         | If you think insider trading occurred, its already illegal and
         | should be reported to the Office of Congressional Ethics.
         | (https://oce.house.gov/learn/citizen-s-guide)
         | 
         | I'm frankly disturbed that this kind of specific trading by
         | people in power is going on at all. Salaried federal employees
         | above a certain level are strongly encouraged to invest only in
         | generic mutual funds to avoid even the appearance of conflict
         | of interest. When I look at the above trades I'm not sure
         | whether anything _technically_ illegal occurred but I 'd
         | support making _all_ specific trading illegal to avoid even the
         | appearance of unethical behavior. Higher powers deserve to be
         | held higher standards.
        
           | dmoy wrote:
           | > When I look at the above trades I'm not sure whether
           | anything technically illegal occurred but I'd support making
           | all specific trading illegal to avoid even the appearance of
           | unethical behavior.
           | 
           | That sounds like an excellent idea to me. While in office,
           | can only trade TSP funds, or their rough equivalents outside
           | of TSP. If you wanna sell something that isn't a giant index
           | fund? Do it before you take office.
           | 
           | Then I'd further support that all trading would have to be
           | done via a 10b5-1 plan, with a blackout window of at least 6
           | months.
        
         | munk-a wrote:
         | We elect people who actually believe in governance instead of
         | people out to make a buck. I know that everyone's going to act
         | in their own interest (that's sorta how interests are defined)
         | but some people feel a legitimate duty and loyalty to country
         | and welfare above their own personal comfort - these people
         | tend to be torpedoed very early on in US politics because they
         | refuse to cozy up to special interests to play the campaign
         | finance game but they do exist.
         | 
         | It's easy to be a thorough cynic in the modern world, but most
         | people aren't out to con everyone else when they get the chance
         | and, if a spotlight is shone on the problem, will respond that
         | actions should be taken to make things more just.
         | 
         | Here's an article calling out the stock trading specifically
         | around Covid treatment drugs with some congressmen and
         | politicians calling out the behavior:
         | 
         | https://www.nbcnews.com/politics/congress/aoc-calls-senate-i...
        
           | Kranar wrote:
           | Meh, a lot of the people you're describing are incredibly
           | incompetent and succumb to simplistic ideologies. Over the
           | long run they end up in the same position that everyone we're
           | complaining about ends up in.
           | 
           | While not entirely related, I remember a study by the U.S.
           | military during the Vietnam war that said the worst
           | performing soldiers were the ones who were patriotic and
           | served due to a sense of duty. I'm simplifying here but the
           | idea was that those were often the first people to feel a
           | sense of entitlement and feel as if because they had good
           | intentions that they were "owed" something.
           | 
           | Belief in governance is cheap and doesn't do much to solve
           | anything. Competency, skills, leadership, those are qualities
           | that result in change... having a good heart and believing in
           | or trying to execute various altruistic ideologies is
           | basically a loser's game.
        
             | danans wrote:
             | > Competency, skills, leadership, those are qualities that
             | result in change... having a good heart and believing in or
             | trying to execute various altruistic ideologies is
             | basically a loser's game.
             | 
             | We should expect elected officials to have both. It's not
             | like it's impossible.
        
             | michaelmrose wrote:
             | Can you dig up that study please?
        
             | munk-a wrote:
             | I strongly agree it's a loser's game - given our current
             | political system. People who aren't willing to fight dirty
             | and compromise their morals will fail since that's where
             | the money is - and that's sort of my point. We need to
             | change the system to make it so that these people can
             | fairly compete by pulling money out of the political system
             | and evening the playing field.
             | 
             | I'm also not advocating that blindly loyal idiots should be
             | in charge - a good comparison to make is to look at more
             | local governance. On a local level the stakes are much
             | lower so the money being thrown around is far less - this
             | lets people get into politics because they want to make
             | change which is an anomaly at the national level - most of
             | those politicians are there because it's a career and they
             | value preserving that over everything else.
             | 
             | Another decent idea in this direction is term limits but
             | I'm a bit concerned that that might deprive us of
             | competency.
        
             | whatshisface wrote:
             | > _Competency, skills, leadership, those are qualities that
             | result in change... having a good heart and believing in or
             | trying to execute various altruistic ideologies is
             | basically a loser 's game._
             | 
             | If you are competent, skilled, and a leader, but are not
             | altruistic, you will end up being a very competent, very
             | skilled leader of a burglary operation. ;)
        
           | partiallypro wrote:
           | AOC has been silent on Democrats doing similar, which make it
           | seem like she doesn't really care.
        
             | fakedang wrote:
             | AOC was vociferously calling for the shutdown of Parler on
             | Twitter, when the protest was coordinated over Facebook and
             | Twitter too. Imo, she's just a classic Democrat politician
             | with a louder mouth, enough to rival the Republican mouths.
        
           | insert_coin wrote:
           | We elect people who seek power for the sake of power, and
           | sometimes pretending to care about others help them acquire
           | it, and sometimes when the stars align, having to actually
           | help others helps them keep it.
           | 
           | > It's easy to be a thorough cynic in the modern world...
           | 
           | Thanks to politicians it's never been easier!
        
         | jackdeansmith wrote:
         | I feel like a good first step would be requiring that any
         | assets over some small cutoff be held in a blind trust. It
         | wouldn't solve all problems, but it sure would solve a lot.
        
         | SavantIdiot wrote:
         | You cannot. As long as there are rigged markets and cadres of
         | elites, we can truly do nothing. Sad, really. Not helping the
         | matter is half of the US is below average intelligence and will
         | elect crooks because they say the right things.
         | 
         | If only there were more Ron Wydens and AOCs. But you see red
         | states electing nutjobs who barely have high school degrees
         | (Boeber) because they shout the loudest.
        
           | jimbob45 wrote:
           | Wyden and AOC enjoy the luxury of not having to worry about
           | re-election due to residing on extremely blue states. They
           | would not be so bold if they represented Texas or Florida,
           | for example.
           | 
           | The same goes for Republican representatives in highly red
           | states.
        
             | SavantIdiot wrote:
             | Ah ah, but that is completely circular logic.
             | 
             | AOC would not represent Texas or Florida because they are
             | not progressive enough to support her in a landslide,
             | twice, the way her district did.
             | 
             | Manchin mealy-mouthed his way into a slight win and has to
             | be a slimy politician with no backbone because he craves
             | power.
             | 
             | The funniest part of your post is that you claim AOC "would
             | not be bold." Do you even know who she is? She's the
             | definition of bold. She is doing what she said she would do
             | and pissing off centrist dems all over the place every day.
             | 
             | But call me when AOC & Wyden are involved in a scandal,
             | which is what this entire thread is about. If so, I'll
             | change my tune, but until then, my original point stands.
        
           | mLuby wrote:
           | > half of the US is below average intelligence
           | 
           | That is what average means.
        
             | SavantIdiot wrote:
             | /woosh/
        
         | gnopgnip wrote:
         | Congress already passed the STOCK act, that is why these
         | disclosures are required, and partially why this kind of
         | securities fraud is illegal. It is the job of the SEC, and the
         | justice dept to enforce this
        
         | abfan1127 wrote:
         | trying to stop the trades is the wrong fix. The right fix is
         | remove their ability to affect markets. Getting to choose
         | winners and losers will always create opportunity to abuse this
         | privilege.
        
           | mattnewton wrote:
           | Someone has to wield political power over companies right? I
           | would rather senators who are restricted from trading than
           | senators who are restricted from lawmaking that might move a
           | stock price.
        
           | BrianOnHN wrote:
           | Or get a handle on the wealth inequality that makes the way
           | we compensate our top elected officials seemingly
           | insignificant.
        
             | Scoundreller wrote:
             | Maybe we could stop making fun of (the very few) people
             | using their stimulus checks to buy stocks.
             | 
             | When I hear that, I'm like, great. Don't bail out
             | corporations, give people money directly and let them
             | decide if they want to acquire a stake or not.
        
               | BrianOnHN wrote:
               | > Don't bail out corporations, give people money directly
               | and let them decide if they want to acquire a stake or
               | not.
               | 
               | I haven't thought of it like that, but it makes a lot
               | more sense than "trickle-down" economics. (Quotes because
               | of the disgust it triggers)
        
               | c22 wrote:
               | I spent all of the stimulus money I received at local
               | businesses which have been severely impacted by the
               | pandemic. Unfortunately none of them offered stock I
               | could purchase.
               | 
               | My first instinct was to give it all to a large tech
               | company in exchange for some marvelous electronic bauble
               | from China, but that seemed counter-productive after some
               | deep thought.
        
           | gpm wrote:
           | This is fantasy, the rules by which the country is run
           | inevitably effects the markets. Raise import taxes, local
           | manufacturers do better, importers worse. Lower import taxes,
           | the opposite. Build roads, construction companies and their
           | supply chains do better. Weaken environmental laws, oil
           | companies do better. Make it easier to sue for health
           | damages, personal injury lawyers do better. Fund the
           | military, defense contractors do better. Etc, etc.
        
             | abfan1127 wrote:
             | look at the trades in the article and how it was impacted
             | by government. Did they outlaw vaccines or did they
             | specifically award money to specific companies?
             | 
             | Further - it will not be reduced to zero. The goal is to
             | move towards zero.
        
           | jrockway wrote:
           | I disagree with this. The people we elect to govern have to
           | be able to govern. But, they maybe don't need to have any
           | business holdings / stock while they're in office.
        
             | abfan1127 wrote:
             | again, the government's role _should_ be protection of
             | protection of person and property. You 're conflating
             | "govern" and "control". There are other means to control.
             | In reality, your goal will never be met because no one is
             | going to openly step into that scenario and be altruistic,
             | certainly not all 536 people.
        
               | bcrosby95 wrote:
               | The protection of person and property oftentimes runs
               | counter to the benefit of a subset of corporations. Given
               | this, government has to do a balancing act. It's in that
               | balancing act that lets them enrich themselves - either
               | through happenstance or on purpose.
        
               | c22 wrote:
               | That's a pretty pessimistic view. Perhaps the individuals
               | currently filling those roles wouldn't go for it, but it
               | seems like we might be able to find 536 altruistic
               | idealists somewhere in America.
        
               | jrockway wrote:
               | I didn't dive deeply into this data, but it doesn't sound
               | like we even need to find 536 idealists. If you sort by
               | number of trades descending, it becomes less than mine
               | very quickly (I buy 4 mutual funds once a month,
               | automatically). If you sort by value of trades
               | descending, it looks like there are only a handful of
               | officials with any meaningful amount of money in the
               | stock market. (For some value of meaningful; there is an
               | example in there about a $50,000 trade, and it just
               | doesn't seem like very much money to me. 50 million
               | dollars, get out that microscope. $50,000? Doesn't change
               | anyone's life, so not really worth being corrupt for.)
        
         | toomuchtodo wrote:
         | https://www.politico.com/news/2020/12/18/elizabeth-warren-st...
         | 
         | https://www.warren.senate.gov/imo/media/doc/Anti-Corruption%...
        
           | mabbo wrote:
           | Great. Now you just need the majority of elected officials to
           | get behind the bill.
           | 
           | Note that the house majority leader is also one of the
           | biggest winner of these rules not existing.
        
             | toomuchtodo wrote:
             | Politics/people is the top of the OSI stack, hence why the
             | problem must be solved there.
             | 
             | If you're more comfortable behind an IDE, gotta get
             | comfortable calling representatives and pounding the
             | pavement. That leads to where the decisions are made.
        
         | alexfromapex wrote:
         | To start with, there needs to be lots of advocacy for insider
         | trading investigations
        
         | kiliantics wrote:
         | In the past, the things that ultimately worked were collective
         | revolts, strikes, sabotage, assassinations.
         | 
         | I think we need to acknowledge that, in the same way that the
         | people with the power to stop this are profiting, they are also
         | the people with the power to change who is in power or how they
         | get in power. Elections are not effective ways of changing
         | systemic power structures anymore. Society pretty much needs an
         | overhaul, especially in the face of serious existential risks
         | like climate change or looming military conflicts.
        
         | slibhb wrote:
         | Is this not already illegal?
         | https://en.wikipedia.org/wiki/STOCK_Act
        
           | ihsw wrote:
           | Is it worthwhile to call it illegal when it's not enforced?
        
           | adolph wrote:
           | https://www.npr.org/sections/itsallpolitics/2013/04/16/17749.
           | ..
        
             | slibhb wrote:
             | > Still, two major elements of the law remain. Insider
             | trading is illegal, even for members of Congress and the
             | executive branch. And for those who are covered by the now-
             | narrower law, disclosures of large stock trades are
             | required within 45 days. It will just be harder to get to
             | them.
        
         | gowld wrote:
         | Use the 4 boxes of Liberty
         | 
         | https://en.wikipedia.org/wiki/Four_boxes_of_liberty
        
       | thepete2 wrote:
       | One thing I've always wondered: Does the stock market basically
       | consist of insider traders making a profit off of people without
       | that knowledge? I feel like even with immense restrictions on
       | insiders in place, information is so easy to pass on to sb. else,
       | that it should be impossible to prevent this.
       | 
       | Heck, I could cough once for buy, twice for sell. Who's going to
       | surveil me and notice that?
        
         | op00to wrote:
         | Yes, literally.
        
         | Fat_Thor wrote:
         | You legalize insider trading for everyone.
        
         | RhodoGSA wrote:
         | for that matter, day trading and technical analysis is
         | literally just insider trading. This chart, based on some
         | analysis of the way it's moved, with no interest in the metrics
         | of the company itself, dictates buy or sell. Every 'Technical
         | Trader' learns these 'indicators' and trades on them. It's just
         | shadow insider trading under the guise of providing 'liquidity'
         | but in reality just contributes to more volatility.
         | 
         | Back when the stock market was founded, it was meant as a means
         | of providing a signal of support for a company. It allowed the
         | company to raise debt or financing based on it's stock price or
         | signal of support. You bought company stock because you
         | believed in the fundamentals of the business and you wanted to
         | support it. Now it's just about how i can sell this stock to
         | the bigger sucker, for more money than i bought it for.
        
       | kyleblarson wrote:
       | How else is Pelosi expected to afford her $20k sub z fridges
       | filled with 13 dollar a pint ice cream?
        
         | ModernMech wrote:
         | I'm not saying Pelosi isn't fabulously wealthy, nor that she
         | isn't engaged in activities which are unethical to enrich
         | herself; but her fridge and ice cream are not evidence of this.
         | The Speaker of the House makes a quarter million dollars per
         | year. That's more than enough to afford such luxuries.
         | 
         | https://pressgallery.house.gov/member-data/salaries
        
           | thelean12 wrote:
           | If she only made the 250k, she'd be spending like 12.5% of
           | her yearly take home pay on a fridge. That seems like a
           | little much.
           | 
           | ($250k is like $160k take home with her home town taxes.
           | 20/160 = 0.125)
        
             | ModernMech wrote:
             | For something designed to last multiple years, why not? I
             | can look in my garage and kitchen at things I've spent
             | 12.5% of my take home on that I expected to last a decade,
             | including my refrigerator. I _do not_ like Nancy Pelosi,
             | but this criticism always seemed like quite a stretch to
             | me.
        
       | hmsimha wrote:
       | This conclusion in particular is probably something that I've
       | assumed in the past:
       | 
       | > On a whole, Democrats seem to love tech and Republicans seem to
       | love oil and gas.
       | 
       | But I hadn't really thought about the wide-reaching implications
       | until now; perhaps its more than a coincidence that the current
       | cryptocurrency bull run really took off shortly after Biden won
       | the presidential election.
        
       | WaitWaitWha wrote:
       | I have a better solution than all these "let's restrict", "let's
       | demand pre-trade disclosure", etc.
       | 
       |  _Term limit them_.
       | 
       | 12 years total Congress in lifetime. That is two full Senate or
       | six House, or combination thereof.
       | 
       | The longer a politician (or bureaucrat) is in a position, the
       | more power they accumulate and the likelihood to forget the
       | purpose of their role.
        
       | ProjectBarks wrote:
       | I am curious why unusual whales did not compare performance to
       | market performance over set periods. I looked around for some
       | papers and was unable to find anything recent. CATO published a
       | report showing there is weak performance difference between
       | senators and their stock portfolio [1].
       | 
       | If they are outperforming this should 100% be remedied but I'd be
       | open if anyone has comments that would contradict this report?
       | 
       | [1] https://www.cato.org/research-briefs-economic-
       | policy/relief-...
        
         | paulpauper wrote:
         | he is selling a subscription. if it actually worked as well as
         | he purports he would do it himself. way easier to collect
         | recurring subs from gullible ppl.
        
       | genericone wrote:
       | Where are they aggregating all this insider data from? Is there
       | an index of stocks being traded by government insiders and
       | officials that can be tracked in real-time?
        
         | dvaun wrote:
         | The Office of the Clerk of the House has a page for downloading
         | Zip files of annual data[0].
         | 
         | If you take the DocID from the XML or TXT files in those sets
         | you can send a request to:                 https://disclosures-
         | clerk.house.gov/public_disc/<doctype>-pdfs/<year>/<docid>.pdf
         | 
         | - <doctype> works for the values "ptr" and "financial"
         | 
         | - <year> self-explanatory
         | 
         | - <docid> the DocID from the entries in the XML or TXT files
         | 
         | Example: Nancy Pelosi disclosure/filing on 2021-04-09[1]
         | 
         | [0]: https://disclosures-
         | clerk.house.gov/PublicDisclosure/Financi...
         | 
         | [1]: https://disclosures-clerk.house.gov/public_disc/ptr-
         | pdfs/202...
         | 
         | This would be fun to play around with. I wonder if there's a
         | better endpoint to source this from?
        
           | adolph wrote:
           | If you are using Python, this is an approach to get PDF
           | tables into Pandas dataframes.
           | 
           | https://towardsdatascience.com/how-to-extract-tables-from-
           | pd...
        
         | CameronNemo wrote:
         | Real time? No. The legislators have to report their trades a
         | couple months after they make them, IIRC.
        
           | monkeybutton wrote:
           | That's unfortunate; If was real time a copycat investment
           | strategy would work, right?
        
             | delecti wrote:
             | IIRC, the same law that requires them to report their
             | trades makes it illegal to use that data to profit.
        
               | weird-eye-issue wrote:
               | There is no way it would be illegal to trade based on
               | their disclosures
        
             | greenshackle2 wrote:
             | tl;dr yes but you would probably get beaten to the punch by
             | high frequency traders, and risk being exploited by the
             | discloser.
             | 
             | If you had sneaky exclusive access to their trading flow in
             | real time then yeah sure you could copy them and get the
             | benefits of insider trading. (And you might be guilty of
             | insider trading yourself? I'm not sure how the law works.)
             | 
             | If _everyone_ knows Alice is doing insider trading and
             | knows her trades, then when Alice buys X at $10.00, there
             | will probably be other copycats piling into X and driving
             | its price up, so you won 't be able to get the same price
             | as Alice, unless you're faster than everyone else.
             | 
             | Since you don't know what the actual inside information is,
             | you don't know if it's still worth it to buy at $10.20,
             | $10.30, etc. Maybe the inside info was only slightly better
             | than expected earnings and the price end up being only
             | $10.05.
             | 
             | This is somewhat exploitable by Alice, she doesn't need
             | insider information anymore, she just has to buy random
             | stock Z and disclose it, watch copycats pile into Z and
             | drive its price up, then sell it back at a higher price.
        
           | alfl wrote:
           | Scanning the data in the linked article [0], most trades are
           | reported within a week, usually only a few days, some same
           | day.
           | 
           | [0]: https://unusualwhales.com/i_am_the_senate/data
        
         | weird-eye-issue wrote:
         | It talks about that pretty high up on the site that is linked.
         | Just go read it.
        
         | ceejayoz wrote:
         | > Like the US Senate, elected members in the US House of
         | Representatives must disclose financial activity they or their
         | spouse or their dependent children conduct while in office.
         | These financial disclosures can be found here.
         | 
         | https://unusualwhales.com/i_am_the_senate/data
         | 
         | Looks like the report gets filed shortly after the trade.
        
         | sakopov wrote:
         | If I had to guess I'd say they're probably using EDGAR -
         | https://www.sec.gov/edgar
        
           | Scoundreller wrote:
           | Take a trip to 1995 and check out what we use in Canada:
           | SEDAR:
           | 
           | https://www.sedar.com/
        
       | LB232323 wrote:
       | This is a really greasy website.
       | 
       | It's not the cheesy logo or the fact that they are ripping off
       | other fintech companies, it's that they are selling get rich
       | quick dreams like a scam artist.
       | 
       | This article is really an advertisement for their services and
       | it's surprising that it went viral here. They are basically
       | encouraging people to try and cash in on criminal financial
       | activity in congress.
       | 
       | I can't put my trust in this site.
        
       | Thorentis wrote:
       | Those evil republicans and their greedy capitalist agenda! Oh
       | wait, both sides do this? Wait, the Democrats do it more?
        
       | barbazoo wrote:
       | Love that data this is making public but I wish it wasn't always
       | so much blue vs red, Republicans vs Democrats, who is worse, my
       | team or theirs. They're all corrupt to some degree, why make it
       | even more partisan that it already is.
        
         | nocommentguy wrote:
         | Yeah but their side actually is much more corrupt. No
         | whataboutism! /s
         | 
         | (How does this comment contribute to the discussion? It
         | preempts long partisan threads that derail the conversation
         | which always get kicked off when someone points out it's all
         | rotten).
        
         | mattnewton wrote:
         | I hope the intent was to show this is not necessarily a
         | partisan issue, representatives on both sides of the aisle are
         | clearly engaging in suspiciously successful trades.
        
       | christiansakai wrote:
       | Meanwhile ordinary people still believe that the war is against
       | their fellow people, in identity politics, religion, sexual
       | orientation etc. Devide et Impera.
        
         | giantg2 wrote:
         | That's because it's the only war they even have a chance at
         | winning because people in power will at least use them as pawns
         | in their shared interests. They realize they lost the other war
         | long ago and are subjects, not citizens in regards to holding
         | the system itself accountable. Or are in blissful ignorance
         | because it hasn't screwed them... yet.
        
           | reedjosh wrote:
           | > They realize they lost the other war long ago
           | 
           | No, I vote ignorance. Most people don't even realize the
           | current global political landscape is a battle of systems
           | (E.g. Rules Based and China's Belt and Road Initiative).
           | 
           | The idea that we're pawns doesn't cross most people's minds.
           | Though I'd agree it may be willful ignorance as the truth not
           | only hurts but is scary.
        
             | giantg2 wrote:
             | "The idea that we're pawns doesn't cross most people's
             | minds."
             | 
             | Maybe. The fact that two of us here are even discussing it
             | is something. I know quite a few people who feel this way.
             | But it does usually take at least the witnessing of a
             | blatant violation.
        
               | reedjosh wrote:
               | I think for me it was just the shear lack of change no
               | matter which politician was in office. From there I
               | started looking for why.
               | 
               | At some point I also realized advertisements are purely
               | bribes meant to shackle speech. Once I abandoned ad-
               | funded media, my learning really took off.
        
       | SMAAART wrote:
       | Not bad! I wish we could have that info in real time!
        
       | docflabby wrote:
       | Only way to consistently outperform the market is lobbying,
       | insider trading or fraud (see Madoff)
        
         | vmception wrote:
         | Don't forget about issuing your own stock and bonds.
         | 
         | I personally consider that part of my own portfolio. No par
         | value, sold at a higher price.
        
       | kipchak wrote:
       | Does anyone use this info for their own trading, particularly the
       | $300 a year plan? You would figure if there's insider trading
       | going on to be watched your performance copying their trades
       | should be pretty good as well.
        
       | Ansil849 wrote:
       | Conflicts of interest with politicians are unfortunately nothing
       | new. Remember several years ago when Pelosi's husband owned Visa
       | stock, while Pelosi was involved in legislation that - had it
       | gone forward, which it did not - would adversely impact Visa?
       | 
       | https://www.politico.com/news/stories/1111/67593_Page2.html
        
       | BrianOnHN wrote:
       | Similar from yesterday:
       | https://news.ycombinator.com/item?id=26807695
       | 
       | HN can't see the forest for the trees.
       | 
       | Trading isn't the issue.
       | 
       | Why are our top elected officials not compensated enough? Income
       | inequality. If it isn't trading, they'll chase Bezos until they
       | "get what they deserve" one way or another.
        
         | michaelmrose wrote:
         | Our top officials are compensated to the tune of 174,000 which
         | is 95th percentile. Making people wealthier doesn't make them
         | more honest.
        
         | mattnewton wrote:
         | Honestly some of these trades also seemed small to me; anyone
         | can make a trade that's up 30% in a year with public
         | information - they can also easily lose as much. It is only
         | problematic when they consistently win by large percentages on
         | the majority of their trades, and this doesn't appear to do
         | that kind of statistical analysis of average returns?
        
           | BrianOnHN wrote:
           | > this doesn't appear to do that kind of statistical analysis
           | of average returns?
           | 
           | Exactly, and you had to be really unlucky not to have
           | significant returns over the past year.
           | 
           | Has anyone looked at their managed retirement find lately? I
           | wouldn't be surprised if you see 30% even in a medium-risk
           | fund.
        
         | the_optimist wrote:
         | Your theory: If you pay Pelosi more, she'll stop insider
         | trading. On top of her +$100M net worth, where her salary pales
         | in comparison to trading gains. You just have to pay people
         | more so they stop abusing the system.
         | 
         | Found the Congressperson here.
        
         | sakopov wrote:
         | Are you saying that these insane leveraged trades won't be
         | happening if elected officials are compensated more? That is a
         | preposterous assumption! You're right, trading isn't the issue.
         | Greed and abuse of power are, however.
        
       | unholiness wrote:
       | A lot of justified negativity in this thread.
       | 
       | On the flip side, are there any congresspeople who have publicly
       | put all their assets in a blind trust? Any who have advanced
       | bills requiring this of their colleagues?
       | 
       | The solution to problems like this is elections, and you would
       | think "My opponent is insider trading while I literally can't"
       | would make a great campaign ad.
        
       | sakopov wrote:
       | > For example, Pelosi in Dec 22 was against more stimulus. Her
       | husband buys deep ITM TSLA and AAPL calls that day. December
       | 23rd, she is suddenly for stimulus again, with those same
       | companies ralling 5%, giving her an instant +30 return.
       | 
       | > Congressman Gottheimer is absolutely an incredible options
       | trader. He's been selling calls at peaks on $MSFT all 2021, &
       | seemingly buying back the contracts on dips. This in blocks of
       | $250,000 - $5,000,000, which is incredible size given the amount
       | of $MSFT shares he owns. For ex, on 02-12 he sold 500k $MSFT $160
       | strike expiring 06/18/2021. On that same day, he bought deep ITM
       | calls of $1M-5M at $145 expiring 03/19/2021. The whale caught
       | both of his movements as well.
       | 
       | This is fucking unreal.
        
         | mattferderer wrote:
         | I would like more oversight here but I don't know if these are
         | great examples. I do (without evidence) believe a lot of these
         | people use insider information.
         | 
         | Pelosi's husband has been very bullish for a long time on
         | Tesla, Apple & tech in general I do believe.
         | 
         | Gottheimer did what I think is a Bull Call spread which means
         | in February, after a crazy run up in market prices in January,
         | he bet that MSFT would go up a little more but would eventually
         | come back down or at least trade sideways & not go over $160 by
         | 6/18. If he sold his ITM calls before March or in early March,
         | he probably did good. If he held on to them until closer to the
         | 19th, he might have got crushed. This doesn't say when he sold.
         | A lot of people argued stocks were overbought after January.
         | Also, if he owns a large share of MSFT it's common to sell
         | calls when you want to keep your shares but think the price is
         | at the top or there is a lot of volatility that will soon go
         | away. It's a way to earn some income without selling.
         | 
         | - None of this is financial advice & I'm fairly ignorant on
         | this topic.
        
           | maest wrote:
           | unusualwhales are incentivised to talk their own book so it's
           | safe to assume they've cherry picked these examples.
           | 
           | The honest way to see if politicians get an outsized return
           | from this type of trading is to run a backtest, with
           | appropriate hedges where you buy whenever anyone buys and
           | sell whenever anyone sells and hold for a medium amount of
           | time (3-6 weeks seems reasonable). unusualwhales know this so
           | the fact that this sort of analysis is missing is telling. In
           | particular, note how they provide stats for what the trading
           | trends are, but not for the outsized performance.
           | 
           | The charts at the end of the article are a lot less
           | impressive and they don't obviously look better than random.
        
           | guiriduro wrote:
           | In addition to possibly using inside information, they also
           | make the news, ie. potentially profit from policy news that
           | they themselves are making.
        
           | itsoktocry wrote:
           | > _Pelosi 's husband has been very bullish for a long time on
           | Tesla, Apple & tech in general I do believe._
           | 
           | I'm curious where you are reading about Paul Pelosi's stock
           | picks. Regardless, so what? He has no business owning and/or
           | trading shares of companies the person he shares a bed with
           | has influence over.
        
             | mattferderer wrote:
             | His name comes up often enough in Finance News Headlines.
             | He makes large transactions. Nancy's office has to file
             | those, so they make great headlines. A quick search should
             | give you thousands of them.
             | 
             | I have no position on your 2nd sentence. I agree in
             | philosophy but acknowledge the details are complicated.
        
             | pc86 wrote:
             | Does Nancy Pelosi have influence over Tesla?
             | 
             | Even if you take a pretty hard-line attitude about members
             | of Congress being prohibited from doing things like trading
             | their own portfolios, it's hard to make a cogent argument
             | that Paul Pelosi, who is by all measures a private citizen,
             | should be restricted from trading specific stocks.
        
           | Joker_vD wrote:
           | Well, when the order of events is "A committee which Pelosi
           | is member of is discussing the large contract on the VR
           | helmets for the military -- Pelosi's husband buys MSFT -- The
           | committee anounces that the contract goes to MSFT -- MSFT
           | stock rises", and the pattern keeps repeating, it _is_
           | evidence, albeit circumstantial.
        
             | throwaway5752 wrote:
             | Seriously, I am very serious about preventing conflicts of
             | interest and insider trading. But Microsoft is a terrible
             | example, they are extremely diversified. The contract was
             | announced 3/31 and it's obvious that it had no particular
             | impact on its share price since that date when looking at
             | its peers: https://www.google.com/finance/quote/MSFT:NASDAQ
             | ?comparison=...
        
               | pc86 wrote:
               | It went from approximately $235 to $250, which is about
               | 6%. On calls, especially short-dated ones, that can
               | easily be a 40-50% gain. I've got a number of different
               | MSFT LEAPS in my portfolio and they all went up 15%+ on
               | that news.
        
             | jonhohle wrote:
             | That seems like the definition of material, non-public
             | information. In the past I don't think Congress was bound
             | to the same trading rules as the general public (blech),
             | but last I checked, Mr. Pelosi is not in Congress.
        
               | TheCoelacanth wrote:
               | Congress is bound by the same rules as the general
               | public, they just aren't legally insiders.
               | 
               | Insider trading requires not only material, non-public
               | but also some kind of duty of confidentiality to the
               | company you are trading.
               | 
               | Congress doesn't have that type of relationship, so they
               | are not insiders. Their spouses aren't either.
               | 
               | There are some additional rules that apply to people who
               | gain knowledge in an official capacity[1], but these were
               | enacted fairly recently and haven't been effective at
               | keeping Congress from trading using the non-public
               | information that they receive.
               | 
               | [1] https://en.wikipedia.org/wiki/STOCK_Act
        
               | tomcam wrote:
               | Well they aren't legally insiders because... they made
               | the rules.
        
               | TheCoelacanth wrote:
               | Not really, they aren't insiders because when courts
               | interpreted the rather vague laws against fraud in the
               | context of securities trading, they didn't interpret
               | Congress trading based on knowledge received in their job
               | as fraud.
        
               | jonhohle wrote:
               | This falls under misappropriation which does not require
               | the reader to any relationship to the company being
               | traded, only material, non-public information.
        
               | TheCoelacanth wrote:
               | I'm not aware of any case law finding that Congress using
               | their knowledge is misappropriation. Do you have any
               | examples to the contrary?
        
         | goatinaboat wrote:
         | _This is fucking unreal._
         | 
         | How do you think so many people on government salaries become
         | super rich, whilst supposedly working for the government?
        
         | gadders wrote:
         | I don't know if specific trades are sketchy or legit, but I do
         | think there should be some sort of log of net worth when you
         | join congress, senate, houses of parliament etc and politicians
         | be expected to explain any large gains over their time in
         | office.
        
           | [deleted]
        
           | chris11 wrote:
           | My employer has 105b plans available if you want to trade
           | outside of trading windows. I think we should have something
           | like that for politicians. Insider trading would be less of
           | an issue if politicians and spouses were required to publicly
           | announce trades 30-90 days before they were made. I don't
           | think that would impact long term trading strategies, and I
           | think it's reasonable to ask politicians to give up short
           | term trading.
        
           | chrisbolt wrote:
           | Like https://www.opensecrets.org/personal-finances ?
        
           | giantg2 wrote:
           | Frankly, it's insider trading and should be
           | restricted/prosecuted as such.
        
             | tgb wrote:
             | I think the insider trading aspects of this are the lesser
             | concern. There's substantial debate over whether insider
             | trading is actually a net negative for society or whether
             | it makes sense to regulate, surprisingly. [1]
             | 
             | The primary concern here is whether or not this influences
             | their decisions when it comes to governing, whether they
             | choose the option that is most profitable rather than best
             | for their country.
             | 
             | [1] https://en.wikipedia.org/wiki/Insider_trading#Arguments
             | _for_...
        
             | fighterpilot wrote:
             | There will almost always be plausible deniability. Needs to
             | be banned.
        
               | giantg2 wrote:
               | I think the insider trading laws don't require motive -
               | just that they had private information or used their
               | position of influence and that they benefited from a
               | related trade. The rules for executives at companies
               | usually requires them to file any trade plans related to
               | their company stock prior to actually making the trade,
               | which would at least prevent the short term plays like
               | the Pelosi example. Even tech people at trading companies
               | are subject to restrictions in what they can trade, even
               | if they aren't looking at the financial data.
        
               | JumpCrisscross wrote:
               | Stupid insider trading, where someone gets a tip and then
               | trades on it, is well enforced. It's easy to catch _ex
               | post facto_ and the people doing it are generally of the
               | mind that everyone is insider trading and so they 're
               | unlikely to get caught.
               | 
               | The problem is in the grey areas. Take the Pelosi
               | example. The material nonpublic information was her
               | personal policy position. Assuming she acted purely
               | venally, are your own intentions insider information? If
               | I know I'm going to get Chipotle for lunch tomorrow, is
               | it insider trading to buy Chipotle shares?
               | 
               | If, on the other hand, her husband took a conversation he
               | had with her about policy and then traded on it, _that_
               | would be insider trading. Unless they did it over text
               | message, however, the odds of proving it are zilch.
        
               | giantg2 wrote:
               | "personal policy position"
               | 
               | Once she announces it in the media, wouldn't it be a
               | professional policy opinion? CEOs are similar. They can
               | believe what they want, but what they say to the media
               | can be punished (like Elon was). The real sticking point
               | is how is she of one opinion then flip to the complete
               | opposite the next day without giving a reason. If they
               | have to report their intended trades then it could avoid
               | this short term play.
               | 
               | Spouses and household members are held to the same
               | restrictions as the regulated individual, regardless of
               | the conversation or not. The only reason it's hard to
               | prove is because they are in a position of power. The SEC
               | would jump on any normal people doing the same thing.
        
               | fighterpilot wrote:
               | Regarding the Pelosi example, it's even worse than what
               | was suggested above. The TSLA trade was placed a few days
               | before Biden came out and said they planned to buy EVs
               | for government vehicles, which was an announcement that
               | directly caused TSLA to spike up the second it was
               | broadcast to the market.
               | 
               | Again though there's plausible deniability, as you say.
               | It needs to just be outright banned.
        
         | koube wrote:
         | Dec 22 democrats had reached an agreement to provide $600 in
         | stimulus, this was an agreement that had buy in and should have
         | been pushed forward.
         | 
         | Dec 23 Trump announced support for a $2000 stimulus, changing
         | the political calculus, in favor of democrats, who did
         | eventually push through the remaining $1400 in a separate
         | package.
         | 
         | Pelosi's strategic change is not a change that happened in a
         | vacuum. Trump's announcement was all over the news and was the
         | single most important event in the political world that day,
         | not Pelosi's husband buying calls. Contextualizing this event
         | around Pelosi's husband is misleading.
         | 
         | Ok downvote my comment all you want but this is well documented
         | and was less than 6 months ago, and frankly it's surprising
         | that people forgot how impactful this event was. People are
         | still criticizing Biden over the additional check being 1400
         | instead of 2000.
        
           | lordnacho wrote:
           | As a member of Congress she has much better colour on what's
           | about to happen than everyone else. She can basically count
           | up the votes before before anyone else.
           | 
           | I'd rather live in a world where reps are squeaky clean. It's
           | much better than one where we make up some rules where people
           | who come right up to the line end up smelling bad, and then
           | everyone is born complaining about the corruption and
           | enduring it with no recourse.
           | 
           | Ultimately it's a rules vs discretion (aka judgement)
           | question.
        
             | koube wrote:
             | Ok yes she did count the votes, determine that this was the
             | highest number that could be negotiated, and then she
             | worked to push the bill forward as she should have. And
             | then the president tweeted out of nowhere which changed
             | things. Trump's unpredictability is well known for anyone
             | who has read the news at least once in the past five years.
             | All of this is above board. What do you want her to do?
             | Forget all of her policy goals and act against all of her
             | stated interests because her husband bought calls the
             | previous day?
             | 
             | I don't know if you remember, but the amount of stimulus
             | remained 600, so Pelosi was on money on what was
             | politically possible. The remaining 1400 only was possible
             | after the slimmest of senate majorities after the Georgia
             | runoffs.
        
               | lordnacho wrote:
               | I'd want her to not speculate on the event, it looks bad.
               | The system doesn't just depend on people not cheating, it
               | depends on confidence in the system, judged by people who
               | aren't experts in either trading or politics.
        
               | koube wrote:
               | What did she do here that constitutes speculation? All
               | she did was push for the highest stimulus she could get.
        
               | gowld wrote:
               | Her husband, who is her legal business partner, should
               | not be trading at all. It's just that simple. They should
               | buy long-term bonds.
        
         | wpietri wrote:
         | Whatever the behind-the-scenes truth, I think the appearance of
         | conflicting interests is a problem regardless. For a lot of
         | elected offices and high public service positions, I think
         | their wealth should be put into a blind trust, one constrained
         | by law to buy broad, boring things like index funds.
         | 
         | That would surely be a problem for some individuals. But I
         | don't think it's a systemic problem. We only need to find
         | 0.00013% of the US population to fill the Senate and House
         | together; surely there are that many people who are both
         | competent and willing to put the public interest ahead of their
         | own.
        
           | sneak wrote:
           | I think this presupposes the lie that the government is by,
           | of, or for the (majority of the) people.
           | 
           | This is a closed system, and most are not allowed anywhere
           | near the control room.
           | 
           | It, including these trades, is working as intended.
        
             | munk-a wrote:
             | > It, including these trades, is working as intended.
             | 
             | You can view the US in a lot of cynical ways but it was not
             | created as a vehicle to allow the wealthy to continue to
             | gain wealth at the expense of the poor. Insider trading
             | between congressmen using their posts to fleece the public
             | was never an intent of the government.
        
               | jessaustin wrote:
               | That is precisely the reason that Madison and his
               | collaborators wrote the constitution (with debates kept
               | secret from the public). The nation already had popular
               | rule and a federal organization in 1781. The problem for
               | the rich was that state legislatures kept helping out the
               | majority of their voters, changing various rules about
               | repayment of debts and so on. The constitution put an end
               | to all that, as it was intended to do.
        
               | jhallenworld wrote:
               | It was at least created for them to at least preserve
               | their wealth. In the debates leading up the creation of
               | the Senate, here is a typical argument:
               | 
               | "...our government ought to secure the permanent
               | interests of the country against innovation. Landholders
               | ought to have a share in the government, to support these
               | invaluable interests and to balance and check the other.
               | They ought to be so constituted as to protect the
               | minority of the opulent against the majority. The senate,
               | therefore, ought to be this body; and to answer these
               | purposes, they ought to have permanency and stability.
               | Various have been the propositions; but my opinion is,
               | the longer they continue in office, the better will these
               | views be answered"
               | 
               | https://founders.archives.gov/documents/Madison/01-10-02-
               | 004...
        
               | triceratops wrote:
               | > it was not created as a vehicle to allow the wealthy to
               | continue to gain wealth at the expense of the poor
               | 
               | I mean the American revolution was spearheaded by wealthy
               | land and slave owners who were tired of taxes.
        
             | smt88 wrote:
             | The US is explicitly not about the majority. The Senate and
             | Presidency are both anti-democratic institions where land
             | controls votes.
        
           | snarf21 wrote:
           | I agree that _ALL_ government employees, their spouses and
           | companies should own no individual stocks until they leave
           | office /job. However, the politicians are just the tip of the
           | iceberg in regards to the rigged game of Wall Street. We have
           | bigger fish to fry but no one seems to like fish anymore.
        
             | hyperpape wrote:
             | I agree in spirit, but this is overbroad. The various
             | branches of government employ millions of people. A cop, or
             | VHA nurse, or my friend who works a non-managerial role at
             | the EPA can own stock. It's the decision-makers who were
             | should be concerned about. That group extends beyond
             | congress, but doesn't contain literally every government
             | employee.
        
             | delusional wrote:
             | I don't think normal middle class government workers owning
             | stocks is a real problem. I get where you're coming from
             | (technically they could have inside information), but it's
             | not nearly as impaction as the elected officials having
             | very large swings hinge on their own policies.
        
           | smt88 wrote:
           | I think it's easy to rephrase this as follows:
           | 
           | People should not be able to make bets on matters over which
           | they secretly control the outcome.
           | 
           | That means any federal official should have their investments
           | behind a blind trust of some sort, no exceptions.
        
             | Jommi wrote:
             | Edit it to "secret bets" or even "non publicly announced".
        
               | smt88 wrote:
               | I'd have to think it through more, but my gut says that I
               | don't care if the _bet_ is secret. Although I would
               | separately support a law that all elected officials must
               | have extreme transparency into their finances.
               | 
               | I think people should give up all of their right to
               | privacy (when it comes to business, finances, travel, and
               | even conversations) when they acquire a large amount of
               | power. In my head, a US senator would have that much
               | power and that little privacy, whereas a US
               | representative in the House would not.
        
             | paulryanrogers wrote:
             | Isn't this already an illegal conflict of interest?
             | 
             | Are federal representatives immune?
        
               | infinite8s wrote:
               | Congress excluded itself from insider-trading laws.
               | Convenient, eh?
        
               | _underfl0w_ wrote:
               | Can anyone cite a source for this? I don't doubt the
               | legitimacy, but would like to know more about it.
        
               | vageli wrote:
               | It doesn't seem to be true any longer with the STOCK act.
               | 
               | https://en.wikipedia.org/wiki/STOCK_Act
        
           | nitrogen wrote:
           | _We only need to find 0.00013% of the US population_
           | 
           | Maybe we should use sortition then instead of elections? What
           | could be more democratic than random average people (meeting
           | some criteria) taking a turn at the wheel?
        
             | slowmovintarget wrote:
             | A significant percentage of random average people have no
             | practical understanding of economics, and no ability to
             | think of consequences to policy.
             | 
             | Granted, neither do a significant percentage of the
             | currently serving congress if current policy is anything to
             | go by.
        
               | voldacar wrote:
               | > A significant percentage of random average people have
               | no practical understanding of economics, and no ability
               | to think of consequences to policy.
               | 
               | unfortunately, this is also true of our elected officials
        
               | kelnos wrote:
               | > _Granted, neither do a significant percentage of the
               | currently serving congress if current policy is anything
               | to go by._
               | 
               | I think they understand just fine, most of the time, but
               | are more interested in enriching themselves and their
               | cronies than looking out for their constituents or the
               | health of the system as a whole.
        
               | frankfrankfrank wrote:
               | Regardless of whether one may like the initial selection
               | criteria or not, what you describe is precisely why the
               | country (USA) was supposed to be led by land owning free
               | white men. The assumption being that people that fit that
               | criteria, plausibly possessed a requisite initial
               | selection criteria set of skills and knowledge that would
               | constitute the pool of best qualified people to run a
               | government in the common interest. From that pool of
               | people their peers would further select amongst each
               | other using those very same abilities, knowledge, skills,
               | and capacities to further choose the utmost best person
               | to lead.
               | 
               | I realize that just saying that may cause some
               | consternation among some, but it is objectively the best
               | selection system one could possibly devise, for any
               | people anywhere, regardless of whether people like it or
               | not.
               | 
               | It's not even a selection system that is not used all
               | over the place from choices within your family where
               | there are certain prerequisites like being an adult or a
               | parent or having to be a member of the union in order to
               | vote on union matters, or having achieved certain
               | certifications and qualifications before you can make
               | decisions about building a highway bridge.
               | 
               | It is and has not been a net benefit to any of us that
               | "democracy" was first imposed and then expanded when the
               | founders of the USA were very explicit about the fact
               | that democracy was a recipe for disaster and would
               | invariably cause destruction ... as it has. Personally, I
               | would very much have been ok with benefitting from
               | properly qualified people making decision for me that I
               | have no competent capacity to make for myself, rather
               | than having lived in a society where everyone thinks they
               | are equally smart and competent and my vote counts the
               | same as some fool who does not know that a week is seven
               | days (something I heard someone in her early 20s say
               | yesterday. She thought the week excludes the weekend)
        
               | spoonjim wrote:
               | The destruction to the Founder's political vision didn't
               | come from expanding the franchise, it came direct
               | democracy. The idea was explicitly that the average voter
               | was completely unqualified to choose the President, and
               | that the only question the voter would be asked is: "Who
               | in your town should make decisions for you?" That person
               | would go to your state legislature, which would vote for
               | your state's electors, who would go and deliberatively
               | decide the President.
        
               | dysrend wrote:
               | Democracy[?]republic
               | 
               | The career politicians, intelligencia, and c-suite
               | technocrats have been running shit for the past half
               | century or more - you see where it's gotten us, to the
               | _ruin_ you describe.
        
               | rocqua wrote:
               | > Regardless of whether one may like the initial
               | selection criteria or not, what you describe is precisely
               | why the country (USA) was supposed to be led by land
               | owning free white men.
               | 
               | > I realize that just saying that may cause some
               | consternation among some, but it is objectively the best
               | selection system one could possibly devise
               | 
               | Combining these two statements suggests that you would
               | advocate for white supremacy. Is that a correct deduction
               | of mine? I would rather ask than just jump to
               | conclusions.
        
               | _underfl0w_ wrote:
               | > but it is objectively the best selection system one
               | could possibly devise
               | 
               | Your determination of objectivity seems a little...
               | subjective.
               | 
               | Maybe this was objectively best _at the time_ but at
               | minimum the race part seems to no longer be true.
        
               | Red_Leaves_Flyy wrote:
               | What about both?
               | 
               | Take the existing system and have the house and Senate
               | argue every official act to the sortition for a vote. How
               | would this be worse than the current crony capitalism we
               | suffer under?
        
               | rocqua wrote:
               | Perhaps have a third stage (after the senate) that is the
               | sortition that has to approve a bill.
        
             | sneeze-slayer wrote:
             | Hah, Philip K. Dick explored this a bit in "Solar Lottery."
             | In the book it's a bit absurd, but still an interesting
             | take on a "randomized" government.
        
             | rootusrootus wrote:
             | I agree, I have long thought sortition might be the right
             | answer. Right along with leveraging modern technology to
             | reset our representative-to-citizen ratio to something like
             | the constitution originally prescribed.
        
               | [deleted]
        
               | rocqua wrote:
               | The thing is, the last few times I recall when some have
               | tried more direct democracy (Brexit, a few referenda in
               | europe, california ballot measures) it seems to lead to
               | decisions that seem rather sub-optimal. I am not sure the
               | random citizen might actually be better at governing that
               | a professional politician.
        
             | dkarl wrote:
             | I think random people would either be shallow and selfish
             | about it or be so intimidated by their responsibilities
             | that they would be at the mercy of knowledgable advisors
             | chosen from the same small class of people who run the
             | government now.
        
           | psychlops wrote:
           | Just require them to announce their trades publicly 24 hours
           | in advance. And let them manage their own finances. All these
           | shenanigan's would disappear.
        
             | gibolt wrote:
             | That doesn't work. If they are aware of a huge non-public
             | deal, the market may react based on their trade, but not
             | nearly as much as when the deal goes public.
        
               | psychlops wrote:
               | It would help. There are already funds that track the
               | money of politicians and invest accordingly. If they
               | submitted a large options trade, the funds would front
               | run them and take away much of the profit.
        
             | ed_balls wrote:
             | Their children or other family would do the deals.
        
             | m463 wrote:
             | If I was a foreign government, I would just monitor these
             | announcements and impoverish the US politicians.
        
               | gowld wrote:
               | Good. That will discourage them from manipulating the
               | market.
               | 
               | No need for foreign government -- the whole world can do
               | it.
        
               | BurningFrog wrote:
               | If I was a foreign government, I would want to enrich US
               | politicians, so they became favorable to my causes.
        
             | throwawaygh wrote:
             | Why not just prohibit members of Congress of owning stock?
             | They are some of the most powerful people in the world. Why
             | is it so much to ask that a Senator or especially
             | Representative serving in the most powerful legislative
             | body in the world just take a cash position for 2-6 years?
        
               | FabHK wrote:
               | I think it would be perfectly fine to let them have their
               | money in broad index fund, or maybe an actively managed
               | fund which should also be open to every citizen. Allow
               | withdrawals etc. only once a month or so to avoid market
               | timing.
        
               | klyrs wrote:
               | I fully agree, and I'd like to extend it to their
               | families as well. But... you ask "why not" and the simple
               | reason is that only they could enact such a law. And even
               | when the laws are in place -- Trump ran roughshod over
               | the foreign emoluments clause, and there were zero
               | consequences. Why would the richest and most powerful
               | Democrats set such a precedent, only to have it turned
               | around when they're in power and stand to profit?
        
               | somethoughts wrote:
               | Yes - it definitely seems like it should be more or a
               | "let's hope we can see both" type thing rather than an
               | "either or type" thing. I think publicizing existing
               | holdings is huge in that it can be done based on existing
               | data sets as unusualwhale has shown and it is something
               | that "we the people" can do, today - perhaps just by
               | sharing this article.
               | 
               | Eradicating politicians doing insider trading is a much
               | longer slog that we are mostly just hoping "those with
               | the power" will enact against their own self interests.
        
               | diebeforei485 wrote:
               | I agree. Their wealth should be in a blind trust (unless
               | they run the company or farm or whatever).
        
               | frankfrankfrank wrote:
               | I am not at all opposed to this strategy either, but as
               | you seem to imply, it would really need to be hardened
               | against other corruption and schemes like that the blind
               | trust has to be run by the same government office.
               | 
               | It is why I like the fact that they just have to announce
               | their stock trades ahead of time, it still allows them
               | autonomy, but also there is no sense in front running
               | them if they are not trading on insider knowledge. Their
               | performance should essentially be in line with the
               | market, not like Mr. Gottheimer that seems to have
               | tripled his net worth in FY2020.
        
               | godelski wrote:
               | Because investments are still a great way to hold your
               | savings. The problem here isn't that they have
               | investments (e.g. a 401k), it is that they are acting on
               | insider information. Which is illegal to everyone else.
               | At _minimum_ they should be held to the same standards.
               | Though I think most people agree that they should be held
               | to _higher_ standards, which gives suggestions like a
               | blind trust. And obviously strict rules of if they break
               | the blind part that they get jail time.
        
               | dan-robertson wrote:
               | It's not insider information. You might consider it
               | material non-public information, which you can't trade on
               | in Europe, but in the US insider trading has a much more
               | narrow definition: roughly it has to come from the
               | insiders of the company. If your friend at Microsoft
               | tells you that they won some massive contract, you can't
               | trade on it. If you overhear that news in a cafe, you
               | can. If your friend at the government tells you they're
               | going to agree on a big contract with Microsoft, I don't
               | know if you'd be allowed or not but if you weren't
               | allowed I don't think it would be insider trading.
               | 
               | Anyway, that obviously isn't legal advice. And I agree
               | that people should expect legislators to act with high
               | integrity, but that's not really how they vote.
        
               | BurningFrog wrote:
               | Honest question: If I work at Microsoft and I know we'll
               | launch a product that will kill competitor X, am I
               | allowed to short the X stock?
               | 
               | That more analogous to the politician trading. They _do_
               | have inside information, but it 's not from inside the
               | company they're trading.
        
               | BurningFrog wrote:
               | Too harsh. A blind trust would be quite enough.
        
               | efitz wrote:
               | I oppose this idea simply because most people's'
               | retirement is held in investments now; I even think that
               | congressional pensions have been dialed way back IIRC. I
               | much prefer the "notify publicly well in advance"
               | approach.
        
               | jkepler wrote:
               | I think they're too aware that with real dollar inflation
               | probably running at least 10% per year (per Michael
               | Saylor), they'd loose too much value for them to consent
               | to holding only cash for 2 to 6 years. For every $100K
               | they had, they'd end up holding something near $81K down
               | to $53K in real purchasing power... and that's assuming
               | they were content to only stay in power one term.
        
               | coltsfan wrote:
               | that's exactly the point. it's almost a game for rich
               | people to pump up their legacies or because they're just
               | bored. you want them gone. When they are gone, there will
               | be plenty of people left that choose never to buy another
               | stock again for the rest of their lives. No law, just a
               | personal code. Because the influence and power obviously
               | last after you leave office. Monks and samurai can exist.
               | Then so can a congressional Bushido. You just have to
               | stop voting for people who think about their stocks all
               | day while sitting at meetings.
        
               | xienze wrote:
               | > Why is it so much to ask that a Senator or especially
               | Representative serving in the most powerful legislative
               | body in the world just take a cash position for 2-6
               | years?
               | 
               | I agree in principle, but a lot of these people literally
               | serve until they drop dead, which is a different problem
               | with congress. Might be a bit much to tell someone not to
               | invest for 40+ years.
        
               | cpwright wrote:
               | That is bad policy. There is a segment of middle/upper
               | class Americans who own stock; anyone with a retirement
               | plan that funds it. Forcing middle/upper class
               | legislatures into a cash position instead of stocks would
               | make them less, not more connected to similarly placed
               | people. If they can't own stock does that mean they'll
               | just instead invest in real estate which can be even more
               | conflicted?
               | 
               | Of course, if they held widely diversified Index funds
               | there would be fewer conflicts - but not zero as
               | evidenced by legislators trading around COVID briefings.
        
             | toss1 wrote:
             | Or perhaps better yet, simply make all trades public in
             | real-time.
             | 
             | Trades could be scrutinized for insider trading by both the
             | SEC and independent traders/firms, just as there are
             | independent services scrutinizing the crypto blockchains.
             | 
             | Insider trading could then even plausibly be legalized by
             | eliminating the advantage of insider trading (it'd have to
             | be based on a lot of study of the data). If we (or other
             | funds) can setup triggers to act on the trades of insiders
             | as soon as they hit the wire, the market will move against
             | them, and we can also share arguably the same advantage by
             | doing so.
        
             | pessimizer wrote:
             | https://en.wikipedia.org/wiki/STOCK_Act#Amendment
             | 
             | When the public was angry, Congress passed the STOCK act.
             | After the news cycle was over, they repealed disclosure
             | unanimously.
        
               | djrogers wrote:
               | Disclosure still applies for Congress (and POTUS/VP), it
               | was repealed for 28k other gov't employees.
               | 
               | Also, it's mandated 45 days after trades - not in advance
               | as many here are calling for.
        
               | pessimizer wrote:
               | Not being specific enough made my comment misleading.
               | 
               | "The amendment also eliminated the requirement for the
               | creation of searchable, sortable database of information
               | in reports, and the requirement that reports be done in
               | electronic format, rather than on paper."
        
             | somethoughts wrote:
             | Yes - in addition - just have documentation sites like
             | unusual whales which track the trades, holdings and profits
             | of politicians - create infographics prior to every
             | election and distribute them to existing voter
             | information/polling prediction sites like real clear
             | politics.
             | 
             | Politicians already long on certain stocks can also profit
             | from legislation that they are passing. Being privy to
             | insider info which leads to continuing to stay long a stock
             | is an advantage that wouldn't be detected by just sharing
             | recent trades.
             | 
             | In addition to trying to eradicate insider trading - just
             | shedding light on existing holdings by US office holders
             | will have a huge cleansing effect that will go a long way
             | to showing potential biases/conflicts of interest.
        
               | mikepurvis wrote:
               | I would love to believe that would make a difference, but
               | in a hyperpartisan world where many vote based on a
               | handful of ideological allegiances, how many would
               | seriously be moved to change sides over something as
               | small as a little corruption? Or is this something that
               | would be more at the primary level, where it really is
               | more about personality and personal qualities than party?
               | 
               | In any case, the Trump movement's whole response to this
               | kind of thing was a combination of denial and "lol
               | everyone does it", and it seems like that was enough for
               | many in that camp.
        
               | somethoughts wrote:
               | Or is this something that would be more at the primary
               | level, where it really is more about personality and
               | personal qualities than party?
               | 
               | >> For sure there are many factors that influence
               | someone's vote. I think you're right - its more likely to
               | cause leadership rotation within the parties where the
               | rest of the factors are more similar (i.e. stance on gun
               | rights, etc.). The challenge today is that incumbent
               | politicians within their own party tend to have great
               | name recognition among voters - but are more likely to be
               | in the pockets of corporations. This would enable
               | challengers within the party to potentially have an issue
               | they can highlight.
               | 
               | "lol everyone does it"
               | 
               | >> And perhaps articles prove in a data science-y way
               | that perhaps this is true - many politicians are doing
               | it.
        
               | rocqua wrote:
               | There are still voters on the fence / differences in
               | voter turn-out that mean politicians worry about scandal.
               | The main effect is that these politicians will probably
               | be replaced by different ones from the same party.
               | Moreover, other politicians, hoping not to be replaced,
               | might stop doing blatant insider trading.
        
             | lend000 wrote:
             | Why should they be held under less scrutiny than CEO's?
             | They typically have to clear their stock sales with the SEC
             | months in advance.
        
               | cameronh90 wrote:
               | Also as a regular fintech worker, I have to get internal
               | approval from my employer for anything I do. Why can
               | government representatives trade willy nilly without any
               | oversight?
        
               | BurningFrog wrote:
               | If you wrote the rules for yourself, they would probably
               | be more lenient :)
        
               | icedchai wrote:
               | Do you actually "have to"? How would they know if you
               | don't? Basically, is it an honor system?
        
               | psychlops wrote:
               | 20 years ago it used to be the honor system. Now all the
               | records are connected, many make it a requirement of
               | employment to move all accounts into the firm.
        
               | dmurray wrote:
               | Also, it's mandated by the SEC. There are obligations on
               | you, your employer, and (if your broker is in the US)
               | your broker to ask you, and to inform each other.
               | 
               | So it's kind of on the honour system - your broker
               | probably won't ask you for payslips proving you _don 't_
               | work in the industry - but a lot of people are
               | incentivized not to let it happen.
        
               | FabHK wrote:
               | When I was in that situation, I had to disclose all
               | brokerage accounts to my employer, and authorise the
               | brokers to send copies of the account statements to the
               | employer's compliance department.
        
               | somethoughts wrote:
               | That's true too! Finance sites like Marketwatch and Yahoo
               | have insider transaction logs for each company when you
               | search their ticker symbol [1]. There should be a tab to
               | view "US office holder and their immediate relatives"
               | transaction log page as well listed for each ticker.
               | 
               | [1] https://finance.yahoo.com/quote/AAPL/insider-
               | transactions/
        
           | throwaway5752 wrote:
           | I speak for a lot of people that while I agree with you in
           | principle, the sudden interest in this idea in Republican
           | circles after the prior administration's absolute mockery of
           | conflict of interest and self-dealing laws seems
           | hypocritical.
        
             | jb775 wrote:
             | Can you provide any sources for your claims that prove
             | Trump administration personnel directly profited off any
             | supposed self dealings? Or are you just pulling this out of
             | your ass bc you are a lib? Also, who else specifically do
             | you "speak for"?
             | 
             | This article isn't even about self-serving decisions that
             | may benefit politicians down the road...it's about
             | politicians who are actively using politician-privy inside
             | information for short term profit at the expense of their
             | constituents. But hey let's keep crying about orange man
             | bad!
        
               | Swenrekcah wrote:
               | The "orange man" was bad.
               | 
               | This is getting tired. If you are interested in his
               | cronies' self dealings just look it up. They did all of
               | these things and more but also did them more explicitly.
               | Which is a bit more honest in a way I guess?
               | 
               | But the worst part about 2017-2020 was the way he cozied
               | up to enemies of democracy, undermined democracy himself
               | and made a point of sowing and igniting division.
               | 
               | Back to the article, this behaviour is despicable and
               | should be punished for everyone, D or R.
        
               | jb775 wrote:
               | > just look it up. They did all of these things and more
               | 
               | Can you provide a single example with a source that
               | proves this? And please provide an example of how he
               | "undermined democracy". Sounds like you watch a lot of
               | CNN.
               | 
               | I agree it should be punished equally not depending on D
               | or R.
        
               | Swenrekcah wrote:
               | Sure, here's one for the former (link below) and for the
               | second you might remember the refusal to accept the
               | election results and months of egging his supporters on,
               | culminating in an attack on the US Capitol and the deaths
               | of 4 or more people.
               | 
               | https://www.nytimes.com/interactive/2020/10/10/us/trump-
               | prop...
        
             | munk-a wrote:
             | Laws need to come into force sometime - and as long as
             | we're not going to get a ping-pong law that's repealed as
             | soon as republicans get into power then I don't mind it
             | happening while democrats hold the torch. I am well aware
             | of the hypocrisy some folks show on this topic but,
             | honestly, it's a good law no matter who is in power and if
             | we're just trying to be petty we won't get anything done.
        
               | [deleted]
        
           | Avalaxy wrote:
           | Would it really help? You can't restrict their complete
           | social circles as well. All it takes is 1 willing friend who
           | will happily accept your stock tips ahead of large
           | announcements and who's willing to give you a share of the
           | profits in return.
        
             | alkonaut wrote:
             | That's true for all insider trading yet we at least attempt
             | to limit that.
        
           | Taylor_OD wrote:
           | If you took away the politicians way of getting rich then
           | what motivation would people have to be politicians? /s
        
             | unethical_ban wrote:
             | I'm thinking of running for city council because I actually
             | give a shit about civil service, the importance of good
             | government, and I think I'm a better option than some of
             | the absolute nutcases even running for _mayor_ in my city.
             | 
             | Some people actually care.
        
             | BurningFrog wrote:
             | Power!
             | 
             | I don't like this corruption, but there are many worse
             | things our rulers could do.
        
         | yumraj wrote:
         | I'm curious if any of this falls under the definition of
         | _insider trading_. It should, but I think it doesn 't and which
         | is why SEC doesn't get involved in these.
         | 
         | Does anyone know?
        
           | teh_infallible wrote:
           | The SEC has long been selective about which rules they
           | enforce and when.
        
           | freeone3000 wrote:
           | For a long time, Congress had an exemption to insider
           | trading. They no longer do, but, insider trading still
           | requires material non-public information about the company in
           | question -- and Congressional acts are the most public thing
           | possible. Betting that a company's stock will go up (or down)
           | and then making it happen after you make the bet isn't
           | insider trading, it's activist investing, and is totally
           | legal.
        
             | powersnail wrote:
             | But if they bet first, wouldn't that makes them unfit for
             | making decisions on where the contract should go? Shouldn't
             | the government official be excused from this decision
             | making process if they have a personal interest in one of
             | the candidate?
        
             | YinglingLight wrote:
             | >Congressional acts are the most public thing possible
             | 
             | Not when said action occurs a week before the Congressional
             | act is announced. Is this HN thread flooded with bots or
             | something? Have never seen this level of sympathy for
             | politicians.
        
               | sneak wrote:
               | What they said was objectively true, regardless of your
               | opinions for or against the situation.
        
               | devmor wrote:
               | No, it was not true. It was predicated on the falsehood
               | that congressional acts are announced as they are
               | decided.
        
               | LanceH wrote:
               | The current count for who has pledged to vote for what is
               | highly relevant and _private_ information.
        
             | skohan wrote:
             | Maybe it's legal, but it should absolutely not be. There's
             | too much risk that a legislator's personal interest will
             | run counter to the interests of the public, and the system
             | should have safeguards against this.
        
               | blunte wrote:
               | Unfortunately that risk is very much in play even without
               | stock trading. Politicians often appear to be working
               | purely to stay in office and gain whatever side benefits
               | they can along the way, and to establish a very lucrative
               | lobby landing after they leave office.
               | 
               | It is all practically very corrupt, viewed from most
               | angles. The few well-meaning politicians either don't get
               | elected or don't stay in office, because it costs too
               | much to get there and stay there (funding); so to get
               | there and stay there, you have to play the game. And
               | playing the game means ensuring your wealthy donors get
               | what they want from you in terms of legislation.
        
               | skohan wrote:
               | Yeah that's all fine, but you can still work to outlaw
               | the most blatant conflicts of interest. Government isn't
               | perfect anywhere, but for instance in northern europe
               | they're doing at least a tiny bit better on that front.
        
           | jb775 wrote:
           | I'm pretty sure they can't be charged with insider trading
           | for some loophole reason. It's 100% insider trading though.
           | US politicians and their families shouldn't be allowed to
           | buy/sell any stocks as a condition of public office. And they
           | shouldn't be able to accept revolving door money after
           | leaving office as well.
        
         | jwilber wrote:
         | Casually making millions, almost certainly illegally, while her
         | district suffers as one of the nation's most severe when it
         | comes to income inequality. [0]
         | 
         | Every day I become more and more convinced that all politicians
         | are basically the same - chasing self-interests, power, and
         | prestige.
         | 
         | [0] https://www.ppic.org/publication/income-inequality-in-
         | califo...
        
           | ABeeSea wrote:
           | California has high inequality compared to other states
           | because the rich people don't want to live in those other
           | states. It's not like people are rushing to move to
           | Mississippi or West Virginia.
           | 
           | It's easy to have low inequality when everyone is very poor
           | like West Virginia.
        
         | disgrunt wrote:
         | Here's a recent Pelosi options trade with the Microsoft AR
         | contract announcement. [0]
         | 
         | [0]: https://www.thestreet.com/mishtalk/economics/nancy-
         | pelosis-h...
        
         | SilasX wrote:
         | >Her husband buys deep ITM TSLA and AAPL calls that day.
         | 
         | Stupid question: if you were expecting an upswing in a stock,
         | wouldn't you get the most returns from an out of the money
         | option? For a deep ITM you're paying the same as the underlying
         | stock plus a tiny premium -- you might as well just buy the
         | stock.
        
           | ABeeSea wrote:
           | A large swing increases the IV which increases the premium
           | (since the stock is now more likely to swing back down). Also
           | decreases the risk in case the trade moves against you.
        
             | labcomputer wrote:
             | Sure, but if that's your investment thesis you'll get a
             | better return by buying an ATM call than a (relatively
             | safer) deep ITM call.
        
             | SilasX wrote:
             | But then you'd own the option so you'd benefit from the
             | volatility and can quickly cash out, right?
        
               | ABeeSea wrote:
               | Yes, you cash out the options when the IV spikes when
               | swings up.
        
               | SilasX wrote:
               | So, back to the original question: wouldn't OTM options
               | make more sense in their position?
        
               | ABeeSea wrote:
               | If the bet is wrong, OTM options expire worthless. ITM
               | options give you less risk, but for a premium (you buy
               | fewer contracts with the same amount of money). But still
               | with more leverage than outright buying the stock.
               | 
               | This is captured in the concept of Delta one of the
               | "greeks" which is a parameter in the black scholes
               | equation and solution that tries to measure the pricing
               | movement of the option relative to the price movement of
               | the stock. Owning stock has a delta of 1. ITM options
               | have a delta closer to 1 but not exactly 1, OTM options
               | have a delta closer to 0, but not exactly 0. ATM options
               | of a delta around .5.
        
               | SilasX wrote:
               | Fair enough, but then if you're having to hedge that much
               | against downside risk, it doesn't feel like insider
               | trading. The whole problem with insider trading is that
               | have special knowledge of which way it's going to go. At
               | the point where you're having to protect against the
               | possibility of being so wrong, that doesn't feel like
               | acting on insider knowledge, and it's more like
               | "interested outsider" trading.
        
               | ABeeSea wrote:
               | I personally don't think it was insider trading so in
               | that sense I completely agree with youx
        
               | onemiketwelve wrote:
               | An insider trade like this isn't about managing risk and
               | things expiring worthless, it's about maximizing expected
               | value while not making it too sus.
               | 
               | If you bought a deep itm call, it would behave almost
               | exactly like owning a share. The stock goes up 5% , your
               | call goes up 5% + 1% let's say for the increased iv.
               | 
               | If you felt like there was a 75% chance it would go up 5%
               | and a 25% chance it goes flat or down, then your best
               | expected value would be buying a otm call. The math would
               | look something like ev= .75 * 400% + .25 * -100%
               | 
               | And even then, nobody holds an option that went the wrong
               | way to 0, so the -100% term would be less as well.
        
               | ABeeSea wrote:
               | I don't think it was an insider trade. But to use the
               | articles example, Microsoft is so large and diversified
               | that the headset contract news might not swing the stock
               | price. Especially if there is broader negative market
               | news.
        
           | onemiketwelve wrote:
           | It's not stupid. I'm questioning whether the original person
           | understands what a deep itm call means. If you knew a stocks
           | gonna move, you buy at the money or out of the money. Never
           | would you buy _deep_ in the money. Makes no sense.
        
         | mdoms wrote:
         | > This is fucking unreal.
         | 
         | It's USA. Corruption is the norm.
        
         | tzs wrote:
         | I don't know about the Gottheimer example, but their Pelosi
         | example seems pretty far fetched.
         | 
         | First of all, Congress passed a stimulus bill on Dec 21, the
         | day before her husband bought those calls. Any 5% gain over the
         | next couple of days or so is for more likely in response to
         | that, and in anticipation of Trump signing the bill soon, than
         | it due to Pelosi changing her mind about some possible future
         | stimulus that hasn't even started being negotiated yet.
         | 
         | Second, the 5% "rally" for AAPL only lasted a week. TSLA's rise
         | lasted longer, but it was rising before this. The article
         | doesn't say anything about whether or not they actually
         | exercised their options to buy the stock, and then sold it to
         | actually profit. If they didn't, then this "rally" had no real
         | effect on them.
         | 
         | Third, looking at other tech stocks, GOOG pretty much did
         | nothing around or for a while after Dec 22. AMZN fell for a day
         | or two, spiked up, came back to around what it was. FB was kind
         | of like AMZN, but the spike was smaller and the fall was
         | deeper. Looking beyond tech stocks, the Dow and the S&P 500
         | don't show anything happening around the time. Most things
         | continued the trends they had been on before.
         | 
         | That suggests that Pelosi's change of heart about possible
         | future stimulus bills didn't have much effect on most stocks.
         | So why did they buy AAPL and TSLA? Even if they thought there
         | would be an effect and wanted to exploit it, buying TSLA to do
         | so makes no sense. AAPL makes a little more sense, but not
         | much. AMZN or some other company whose products people would
         | actually likely spend stimulus money on would make more sense.
        
         | femiagbabiaka wrote:
         | Oligarchy in the U.S. is giving my mother country (Nigeria) a
         | run for its money.
        
           | tomcam wrote:
           | Don't be silly. The U.S. is infinitely more corrupt than
           | Nigeria. Forgive me, but there's just no comparison.
        
             | femiagbabiaka wrote:
             | hah! I am sympathetic -- the U.S. corruption is definitely
             | more impactful to the world, and on a much greater scale.
             | But it is also more covert and _usually_ doesn't creep into
             | the level of person to person bribery in everyday
             | interactions (IME).
        
         | akudha wrote:
         | Isn't Pelosi worth like 100 million or something? How much
         | money is enough for these people? :(
         | 
         | How quickly are these trades made public? Maybe we should just
         | copy the congress people's trades and make some profit
         | ourselves :P
        
           | kennywinker wrote:
           | Well, according to the US supreme court, money is speech - so
           | more money more voice. As a concrete example, trump backed
           | his own campaign to the tune of ~$66mil. Without it, I'm not
           | sure he would have gotten as far as he did.
           | 
           | (I'm not endorsing this, I'm just saying these are the rules
           | of the game that's been set up)
           | 
           | And to answer your second question - not quick enough for the
           | public to act on it.
        
           | frockington1 wrote:
           | Clearance time varies but can take months. They've already
           | collected profits by the time they are disclosed
        
           | BurningFrog wrote:
           | Any sum is fine as long as you got it honestly.
           | 
           | The problem with Pelosi and others is that the money comes
           | from abusing their power, and is in effect taken from other
           | investors.
        
             | Yoofie wrote:
             | The most amazing thing is that these people keep getting
             | re-elected. The voters are the ones allowing this to
             | happen.
        
           | eloff wrote:
           | > How much money is enough for these people? :(
           | 
           | What kind of attitude is that? If you have savings, one seeks
           | a return on said savings by investing them. That's perfectly
           | normal and rational behavior at all wealth levels.
        
             | burkaman wrote:
             | It is not rational once you have enough money for you and
             | those you care about to be infinitely comfortable for the
             | rest of your lives.
             | 
             | Say you have $100,000 in the bank, and you want to spend
             | $10,000. What's the best use of that money? For a normal
             | self-interested person, a rational use would be to invest
             | in whatever will give the largest return, in order to have
             | enough money for living expenses, retirement, children,
             | whatever.
             | 
             | Now, say you have $100 million, and you want to spend $10
             | million. What's the best use of that money? Seeking a
             | purely financial return is completely pointless. It will
             | have absolutely no impact on your life or future, or those
             | of the people you care about. So as a person with a normal
             | amount of self-interest who also cares about other things
             | in the world, the most rational behavior would be to donate
             | it to a cause you care about, or start some purposeful
             | organization, or anything that will have a positive impact
             | on something or someone you value. At this level of wealth,
             | just making more money has no positive impact on anybody,
             | even yourself.
             | 
             | I guess it's possible that Pelosi is saving up in order to
             | start a SpaceX competitor or buy an NBA team or something
             | once she leaves Congress, but she's 81 so that seems
             | unlikely.
        
               | eloff wrote:
               | You seem to have a fundamental misapprehension of
               | capitalism.
               | 
               | If you invest your capital, it's not being hoarded in a
               | money bank like Scrooge McDuck. It's being put to use by
               | the companies and institutions you invest in to provide
               | products and services.
               | 
               | Now I'm all for donating to charity, and it's a much
               | better option than leaving massive wealth to your
               | offspring, in my opinion.
               | 
               | But investing your money is totally rational at any
               | wealth level and it's good for society, and necessary for
               | capitalism to function.
        
               | solipsism wrote:
               | _It 's being put to use by the companies and institutions
               | you invest in to provide products and services._
               | 
               | Why is that better than these companies living off their
               | profits? You talk about it and if it's a given. It's not.
        
               | philsnow wrote:
               | > At this level of wealth, just making more money has no
               | positive impact on anybody, even yourself.
               | 
               | except that having capital makes it easier to gain more
               | capital, so you could very well end up with more impact
               | by aggressively investing for a few years before
               | donating.
        
               | burkaman wrote:
               | Ok, say you invest that $10 million and a year later it's
               | grown to $12 million. That's a decent return, but what
               | was the opportunity cost of investing in Microsoft
               | instead of, I don't know, funding 100 people on GoFundMe
               | who are going to die if they can't afford surgery? The US
               | government uses ~$10 million as the value of a human life
               | when they analyze the cost/benefit of various policies.
               | And it's a compounding investment - a dead person
               | contributes nothing to society, but a living one might
               | contribute quite a bit. That's just one example though,
               | you could make an argument for any number of worthwhile
               | uses for that money. Even something like venture capital
               | or political organizing, which aren't exactly selfless
               | philanthropic endeavors.
               | 
               | And again, I'm talking about 10% of what's in the bank.
               | You could donate $10 million, invest $60 million, and
               | still have an absurd amount left to buy a few houses or
               | whatever you want for yourself. All while risking
               | nothing, if you hold onto $10 million or so to secure
               | your future.
               | 
               | My argument is that there's some threshold after which
               | you have enough money to support yourself, and to invest
               | to maintain your way of life, and to do something
               | purposeful with the rest. And I think that threshold is
               | below $100 million. I agree that it takes money to make
               | money, but as you say, after "a few years" of investing,
               | you do something with it. When does that happen? Do you
               | need to hit a billion first?
        
             | gowld wrote:
             | "normal and rational" is different from "ethical or moral".
             | 
             | "All wealth levels" are not the same.
        
               | tastyfreeze wrote:
               | It is not immoral or unethical for somebody to have or
               | earn more money than another. All people try to increase
               | their wealth however they can. At lower income levels
               | that is very difficult but the behavior is the same.
        
               | eloff wrote:
               | Let me strengthen my position by adding that it is also
               | moral and ethical to seek a return by investing,
               | providing you make reasonably ethical investments. Maybe
               | not in the coal industry or whale meat industry - but any
               | number of things can be perfectly ethical and even
               | beneficial to society at large.
        
               | akudha wrote:
               | Does _reasonably ethical investments_ include using
               | insider knowledge?
               | 
               | Which is what these politicians seem to be doing. Sure it
               | is not illegal, but is it ethical?
        
               | eloff wrote:
               | I'm not advocating for insider investing - which may well
               | be going on here. That's obviously not ethical.
               | 
               | I made a much more general statement in my comment, which
               | you seemingly objected to.
        
               | pc86 wrote:
               | This took a left turn when someone started just
               | complaining that people have a lot of money.
        
               | dysrend wrote:
               | It fails to comply in either case.
        
             | blunte wrote:
             | Let me phrase the question differently:
             | 
             | How much money is enough if you already have $100M and to
             | gain more, you have to manipulate and cheat?
             | 
             | But even without changing the question, $100M invested in a
             | very low risk manner will generate considerable cash flow
             | (if you regularly take some profits). So without even
             | spending your "savings", you can live very comfortably.
             | 
             | However, a special thing happens when you are high net
             | worth. You suddenly have a lot of lenders begging to loan
             | you money at very low interest rates. They need a place to
             | put money, and they know you have assets to cover any loan
             | they might give you. So you, the wealthy individual with
             | $100M in assets, CAN still go buy nice stuff even if your
             | cash flow from your investments isn't huge.
             | 
             | Honestly, unless you just need to show people how much
             | money you can drop because you're so rich you don't care,
             | you don't actually have to spend any of your money to live
             | bigly.
        
               | eloff wrote:
               | > How much money is enough if you already have $100M and
               | to gain more, you have to manipulate and cheat?
               | 
               | Yeah, that's not a good at any wealth level.
               | 
               | > But even without changing the question, $100M invested
               | in a very low risk manner will generate considerable cash
               | flow (if you regularly take some profits)
               | 
               | Sure. But individual risk appetites vary and at that
               | wealth level you can afford to diversify like crazy - and
               | should in my opinion. I'm not sure what that had to do
               | with anything.
        
               | pc86 wrote:
               | Manipulation and cheating is wrong regardless of the
               | amount of money. Tossing the monetary value just aims to
               | inflame passions and try to make an emotional appeal.
        
         | stereolambda wrote:
         | Please correct me, but here's a provocative hypothesis I spent
         | three minutes thinking through. Couldn't you say that
         | speculating with insider information _on public markets_ can be
         | a way for public officials to make a lot of money without
         | marrying themselves to any particular interests? In that case,
         | couldn 't it be potentially a mechanism we can exploit for
         | good?
         | 
         | Disclaimer: not American, no strong opinion on these people.
        
           | jliptzin wrote:
           | Your hypothesis assumes that all elected officials must
           | engage in some form of bribery or pay for play. In an ideal
           | world we'd find leaders who put the interests of the country
           | ahead of their finances.
        
             | Tenoke wrote:
             | Or alternatively we can just pay them _a lot_ more since
             | they 'll make money anyway, disallow them from earning
             | money in other ways and at least have their profits have no
             | additional negative effects.
             | 
             | Not that I expect people would be comfortable paying
             | politicians more (see how many complain about e.g. CEO pay)
             | so I guess we are stuck with incentives for corruption
             | instead.
        
               | kennywinker wrote:
               | I don't think we need to PAY them more to eliminate
               | corruption - I think we need to change how campaigns are
               | financed. Needing to raise millions every few years to
               | keep your job makes you beholding to whoever has the
               | money
        
           | jlarocco wrote:
           | I guess I don't see where the "good" is there?
           | 
           | Being a representative isn't supposed to be a "get rich
           | quick" scheme. They already make a lot of money and IMO if
           | they're going to invest in stocks they should play by the
           | same rules as everybody else.
           | 
           | Edit: On second thought, considering how much they can
           | influence stock prices, maybe they should have _stricter_
           | insider information regulations. It 's a huge conflict of
           | interest.
        
           | tshaddox wrote:
           | Sure, speculating on insider information on public markets is
           | a great way for anyone to make a lot of money. It's also
           | highly illegal, although there does seem to be some fairly
           | prominent views that allowing insider trading would actually
           | help get relevant information priced into the public markets.
           | 
           | But even if you're one of those proponents of insider
           | trading, surely this is clearly different and worse than
           | that, because prominent politicians surely have some power to
           | _influence_ winners and losers.
        
             | stereolambda wrote:
             | Well, the laws around insider trading and similar practices
             | changed throughout history. Many things used to be
             | considered okay, look up Joseph P. Kennedy's biography for
             | example.
             | 
             | You are right that if the officials actually cared about
             | companies, it would not make sense. I was thinking more
             | like hedge fund-like cold speculation. As people guessed
             | correctly, the point is to make the job very appealing but
             | with little ties to powerful interests. Of course is not a
             | serious scheme, but I'm amused by the concept I guess.
        
           | sorbits wrote:
           | Personally I think that the conflict of interest posed by
           | stock holding lawmakers is bigger than the advantages they
           | gain from trading on information that only they are privy to.
           | 
           | For example will a lawmaker holding a large portion of their
           | wealth in Apple shares want to introduce legislation that
           | forces Apple to allow alternative app stores (costing Apple
           | the 15%-30% cut of all the app store sales)?
        
           | adolph wrote:
           | In most situations this is called insider trading and is
           | considered unfair in public markets since the trades of
           | insiders may be concealed, like through a family member.
           | 
           | Within an organization making a decision that advantages
           | oneself is unethical since the purpose of the most
           | organizations is not to fulfill the personal interests of its
           | employees.
           | 
           | It would make some sense to convert all property holdings of
           | a government employee to financial instruments related to the
           | health of the government such as treasury notes. That way
           | their personal interests are at least aligned with those of
           | the government. To the degree that the instruments measure
           | aspects of the government that are not totally aligned with
           | the governed is a problem however.
        
         | frankfrankfrank wrote:
         | Re. the Gottheimer trading; if one is to believe the reports of
         | his net worth based on public records [1][2], he supposedly
         | almost tripled his wealth in just one year. That seems quite
         | unusual.
         | 
         | The fact that he appears to trade mostly $MSFT while also being
         | a former MSFT Executive and seems to be extremely accurate in
         | his options trading of that $MSFT, only really adds to the
         | extreme suspiciousness.
         | 
         | Is there no entity that even just tries to keep tabs on or
         | possibly investigates these people, let alone charge them with
         | crimes where appropriate? It seems that where there is smoke
         | ... and fire ... there may actually be fire.
         | 
         | [1] https://www.nj.com/politics/2019/07/the-richest-new-
         | jersey-m...
         | 
         | [2] https://finance.yahoo.com/news/richest-member-congress-
         | state...
        
           | pvarangot wrote:
           | 3x or 5x of your wealth if you correctly time a global crisis
           | is not unheard of. Even in boring stuff like real state. With
           | options and tech it probably happened last year to a
           | substantial amount of people.
        
           | kelnos wrote:
           | The SEC should be investigating things like this, and do
           | actually bring a lot of enforcement action against various
           | companies and individuals, but I suspect it might be a
           | career-limiting move to target a politician for all but the
           | most gross of abuses.
        
           | adamrezich wrote:
           | > Is there no entity that even just tries to keep tabs on or
           | possibly investigates these people, let alone charge them
           | with crimes where appropriate?
           | 
           | well there's this thing called the IRS that seems to spend
           | most of their time auditing random citizens when the numbers
           | they submit on their tax forms doesn't match the numbers the
           | IRS already calculated on their side. maybe we could
           | streamline that absolutely ridiculous process & their efforts
           | could be used elsewhere
        
             | pc86 wrote:
             | This argument comes up a lot and it's an astounding
             | oversimplification and gross misunderstanding of how taxes
             | work in the US. The IRS does not know how much you owe
             | until you file. They may have a rough approximation, but
             | they absolutely don't know anything close enough to be able
             | to bill you.
        
         | pbreit wrote:
         | There is zero reason for congresspersons to trade options or
         | really even any individual stocks. The optics are horrific.
        
         | api wrote:
         | The fact that high-ranking politicians and bureaucrats can
         | trade stocks at all is criminal. The moral hazard is
         | unbelievable.
        
           | skohan wrote:
           | Yes it's the definition of conflict of interest. It's insane
           | that this is allowed
        
             | sneak wrote:
             | I think it's working as intended and that it's insane that
             | people are surprised it's set up this way.
             | 
             | The state and large corporate interests in the USA are very
             | tightly integrated and have been for at least an entire
             | generation.
        
               | skohan wrote:
               | But this is so cynical. Not to be naive, but if we can't
               | at least start from the framework that the government
               | should serve primarily the interests of the people and be
               | outraged when it doesn't, then the American project is
               | pretty much over
        
               | sneak wrote:
               | I'm not sure that has ever been true, or ever been the
               | goal.
               | 
               | The American government does serve the interests of the
               | American people: the American people who own the bulk of
               | the land and the largest companies.
               | 
               | George Washington was the largest landowner in the
               | colonies when the revolution started.
        
               | hpkuarg wrote:
               | But Washington also shocked the ruling elites of the
               | world by stepping down when he did. Clearly, he was cut
               | of a different cloth than other largest landowners in
               | their respective countries.
        
               | kelnos wrote:
               | Right, and in the very beginning, only some single-digit
               | percent of the people living in the US were eligible to
               | vote. Women, slaves, non-landowners, etc. did not have
               | the right to vote.
               | 
               | The idea that the US was originally founded "by the
               | people, for the people" is not at all what happened. I
               | guess we could say that the government they created was
               | progressive for its time, at least.
        
               | jcranmer wrote:
               | > Right, and in the very beginning, only some single-
               | digit percent of the people living in the US were
               | eligible to vote. Women, slaves, non-landowners, etc. did
               | not have the right to vote.
               | 
               | Slaves would not have been a large proportion of the
               | country as a whole--about 20% at their height. While the
               | early US did require landownership for adult free males
               | to vote, the US also had unusually high landownership
               | rates. It's estimated that ~60% of free adult males had
               | the right to vote (contemporary Britain had about 15-20%
               | of free adult males having that same rate). So ultimately
               | you end up with about 25% of the current franchise rate,
               | or somewhere in the mid-high teens after taking into
               | account the existence of children who still cannot vote.
        
           | formercoder wrote:
           | When in the private sector those of us that even get a whiff
           | of MNPI are told we can't trade individual names at all.
        
             | nuisance-bear wrote:
             | If you work in private equity, it's the worst. Your company
             | isn't actively trading stock, but you still get banned from
             | options, shorts, and need pre-clearance for every single
             | trade. So you end up long SPY... even if you derive
             | independent utility from actively managing your portfolio.
             | 
             | The law doesn't require this of course, but basically all
             | money managers get their insider trading compliance program
             | from the same 3 outside law firms.
        
           | [deleted]
        
         | ABeeSea wrote:
         | > Pelosi in Dec 22 was against more stimulus.
         | 
         | This is not true. It's very odd to see the kind of right-wing
         | conspiracies based on outright fabrications spread on HN as
         | literal truths. Here is an article from December 22 were Pelosi
         | is calling for more stimulus:
         | 
         | www.cnbc.com/amp/2020/12/22/trump-calls-covid-relief-bill-
         | unsuitable-and-demands-congress-add-higher-stimulus-
         | payments.html
         | 
         | Here is her direct tweet dated 12/22:
         | 
         | https://mobile.twitter.com/SpeakerPelosi/status/134155753573...
         | ?
         | 
         | Edit: There are outright lies in the source article. Sad day
         | for HN that the lies are getting so much traction and fact
         | checking with 1st hand sources is getting downvoted.
        
           | itsoktocry wrote:
           | > _It's very odd to see the kind of right-wing conspiracies_
           | 
           | It's even more odd to see the, "if you disagree you're alt-
           | right/ a Nazi" mentality on HN.
           | 
           | Why does a member of congress need to day-trade stocks, let
           | alone leveraged derivatives? It's absurd.
        
             | Goronmon wrote:
             | _It 's even more odd to see the, "if you disagree you're
             | alt-right/ a Nazi" mentality on HN._
             | 
             | You believing that "right-wing conspiracies" automatically
             | means ties to "alt-right/Nazis", I think this says more
             | about your personal biases than the person you are
             | responding to.
        
           | devmunchies wrote:
           | > right-wing conspiracies based on outright fabrications
           | 
           | maybe on that one point, but the fact the democrats trade way
           | more on the markets is not a conspiracy _theory_ , it's an
           | outright conspiracy.
           | 
           | why are you defending these people? because they're democrats
           | on paper?
        
             | allturtles wrote:
             | I believe GP is defending facts against malicious lies.
             | That seems always a good thing, regardless of whom the lies
             | are directed towards.
        
               | ABeeSea wrote:
               | Yes, exactly. This is the kind of obviously disprovable
               | lie that I though wouldn't fly on HN.
        
           | seriousquestion wrote:
           | People are confused about this because Pelosi rejected the
           | stimulus in October, prior to the election. She didn't accept
           | until December, post election.
           | 
           | Some democrats were urging her to accept it in October:
           | https://twitter.com/AndrewYang/status/1315078896853843970
        
             | ABeeSea wrote:
             | That's not what the business insider linked in the tweet
             | says. It says she described the White House plan as
             | "insufficient" meaning there wasn't enough stimulus in it.
             | How can criticizing a bill for not having enough stimulus
             | mean you are against stimulus?
             | 
             | The House had passed the HEROES act for additional stimulus
             | in May 2020. The Republican senate refused to even put it
             | up for a vote. She was always for passing of the HEROES act
             | even during this October - December period. She was always
             | pro stimulus.
        
               | jfk13 wrote:
               | > the HEROES act
               | 
               | Does anyone else cringe at this American obsession with
               | naming acts of congress so as to create "inspirational"
               | acronyms?
        
               | sneeze-slayer wrote:
               | Yeah, I think it's really weird. Maybe a way to help give
               | the bills "spin" and gain support. Honestly, though, I
               | think there are bigger things to worry about.
        
           | ianthiel wrote:
           | Why is this being downvoted? These are references to primary
           | sources that directly contradict facts presented.
        
           | bombastry wrote:
           | I also thought this was odd. This site alleges malfeasance
           | based purely on analysis of data but then alludes to a
           | person's thoughts on specific dates without citation.
           | 
           | I also found this article on 2020/12/21 where Pelosi says she
           | wanted more stimulus, but the $600 checks were
           | significant.[1] So it seems all the more unlikely that she
           | said she was against further stimulus at any point on the
           | 22nd.
           | 
           | [1] https://news.yahoo.com/nancy-pelosi-wanted-
           | more-600-22542493...
        
         | gexla wrote:
         | Pelosi is a master politician and the pandemic has been a fast
         | moving situation. I could see Pelosi being against the stimulus
         | and then fast switching based on changing currents in the minds
         | of voters.
        
           | itsoktocry wrote:
           | Great. Why does she have to buy shares in companies that
           | align with her "switching"?
        
       | kgog wrote:
       | Unsurprisingly, vast majority of $ traded in Energy and
       | Industrials is by GOP, and in tech is by Dems.
       | 
       | Then there's this:
       | 
       | > Meanwhile, Republican Congressman Mark Green, alone, accounts
       | for 99% of the stock purchases in oil and gas companies like USA
       | Compression and Energy Transfer.
       | 
       | Look this guy up [1]:
       | 
       | > Green rejects the scientific consensus that human activity
       | plays a key role in climate change.
       | 
       | [1] https://en.wikipedia.org/wiki/Mark_E._Green#Climate_change
        
       | finexplained wrote:
       | Members of congress should only be allowed to invest in SPY/VOO,
       | VTI, and a few other broad ETFs, long only, no options.
        
         | prussian wrote:
         | Honestly, this should be held for any positions where insider
         | information is clearly a conflict. Maybe not in specific
         | instruments, but investments should be made through a third-
         | party money manager.
        
         | throwawayboise wrote:
         | My thought was that they (and immediate family) would have to
         | put their assets into a blind trust could be disolved upon
         | their leaving office. They should have no ability to make
         | personal investment decisions while they are in a position of
         | such influence and insider knowledge.
        
         | throwastrike wrote:
         | Exactly. If you work for a bank, you can't buy certain stocks.
         | Some firms will limit you to ETFs and indices. Why can't we
         | apply simple private sector rules? Politicians, both republican
         | and democrats, are crooks. I don't think you can contest that
         | outside perhaps a handful of public servants.
        
         | beervirus wrote:
         | That would be a good start. But it's still problematic for them
         | to sell positions like that on non-public information like news
         | of a new pandemic.
        
           | finexplained wrote:
           | I agree, it's a start. But importantly it (attempts to) align
           | their interests with the broader US economy. Also it still
           | allows them to invest for their personal futures, which I
           | believe is a right.
        
         | ralusek wrote:
         | Hasn't the last year very clearly demonstrated that the ability
         | to lower interest rates and print money has had _far_ more of
         | an impact on the market than anything else? Stocks are
         | practically moving up and down in unison, the market is almost
         | entirely macroeconomics driven when 40% of all USD was created
         | in the last 12 months.
         | 
         | If they can invest in total market indices while having the
         | ability to control the money supply, even if they can just go
         | long, it doesn't matter.
        
         | rsync wrote:
         | "... long only ..."
         | 
         | Can we please stop perpetuating the myth that short selling, or
         | holding short positions, is some kind of exotic or shady or
         | villainous activity ?
         | 
         | It's not. Short selling, and the holding of short positions, is
         | value neutral and is part of a healthy properly functioning
         | marketplace.
         | 
         | I don't know what politicians should or should not be doing but
         | a long vs. short distinction is silly.
        
           | finexplained wrote:
           | My apologies, it wasn't my intent to imply that myth. I
           | actually completely agree with your position on short
           | selling. At the time of writing it just seemed a bit weird to
           | me, and possibly an incorrect alignment of interests, for a
           | US politician to take a short position in SPY...
        
             | rsync wrote:
             | OK, actually that's interesting - if they are restricted to
             | SPY (for instance) then it would, indeed, be a bad look if
             | they went short ...
        
         | BrianOnHN wrote:
         | Sounds like overreaching blanket regulation.
         | 
         | What if we just regulated the 0.01% who's wealth is such that
         | it makes the top elected officials in our country have a
         | seemingly insignificant compensation.
        
         | elliekelly wrote:
         | This is more or less what everyone in the registered investment
         | adviser & mutual fund world must do. There's quite a lot of
         | compliance software to facilitate approval and checks before
         | and after a transaction is effected in a personal account and
         | the personal transaction history is compared, broadly, with
         | market performance and internal fund transactions periodically
         | to check for overlapping trades (+/- a week) in the same
         | direction.
        
           | slaymaker1907 wrote:
           | I had to follow these ridiculous rules despite the fact that
           | I never actually had access to PII and was working as
           | programmer at Goldman Sachs (in PWM, no robo trading or
           | anything). These rules seem to be in place mostly for
           | (relatively) poor people.
        
         | de6u99er wrote:
         | What about their friends and families?
        
           | finexplained wrote:
           | In the financial industry we have restrictions not only on
           | our own trading accounts, but on any account that we might
           | have reasonable influence over. In my particular case, this
           | means both my brokerage accounts and any of those belonging
           | to a spouse. This is a requirement by our compliance
           | departments to follow SEC regulations regarding insider
           | trading. I don't see why similar rules would not be applied
           | in this setting.
        
             | de6u99er wrote:
             | Sure, but ultimately it's only a crime if they get caught.
             | And even then it seems to me that they can get away with it
             | too easily.
             | 
             | How about electing honest people, instead of constantly
             | voting for the establishement (w. a few exceptions).
        
               | finexplained wrote:
               | I'm obviously for electing honest people.
               | 
               | It's probably (I don't work at the SEC) true that it's
               | still difficult to catch all perpetrators. The SEC has
               | limited resources and they probably have a way of
               | prioritizing cases that they think have sufficient
               | evidence. No system is perfect, but from my perspective
               | the SEC is a respected organization whose authority is
               | treated seriously. I have frequently been told that I
               | will face serious jail time if I engage in insider
               | trading and am later caught.
        
               | mLuby wrote:
               | (If you know a way to reliably detect "honest" people,
               | it'll make you enough money to stop caring about all this
               | and probably win you a Nobel peace prize too.)
               | 
               | How to detect these crimes? By doing what the article
               | describes: analyze the public officials' public
               | disclosures and performance to see if "House members are
               | outperforming market averages" or "house members followed
               | trends far earlier" than the rest of the market. I would
               | extend this analysis to family and known associates as
               | well; if the politician's neighbor starts making really
               | smart trades around the time the politician entered
               | office, that's worth investigating.
               | 
               | I wonder about allowing any constituent to bring a suit
               | against their politician if they believe they can prove
               | insider trading. Judge/grand jury still has to rule
               | (publicly!) that it's case-worthy _before_ bothering the
               | politician. If the politician loses the case, they 're
               | removed from office, must cover all legal fees, and must
               | give the ill-gotten gains to the constituent who brought
               | the suit as a bounty. If the suit fails, that suing
               | constituent has to cover the legal fees.
               | 
               | We could also require (and might already for all I know)
               | a written justification at time of each trade, which TV
               | suggests is a thing hedge funds have to do, but that's
               | basically just a fixed transaction cost since anyone with
               | money could hire an "analyst" to write something
               | plausible.
               | 
               | Another comment suggested that officials should have to
               | announce trades in advance, though that might have the
               | effect of banning trades altogether.
               | 
               | Fundamentally, I want my elected officials focused 100%
               | on doing their job, not trying to get rich in their spare
               | time. So barring them from all trading while in office
               | would be fine by me.
        
       | steveBK123 wrote:
       | Of course if you actually work in financial services industry,
       | your personal trading is extremely restricted. This is regardless
       | of being in no position to see positions/flow/etc that would give
       | you any insider edge.
       | 
       | The industry generally sees it as easier to show compliance by
       | having locked down personal trading by employees.
       | 
       | Usually this takes the form of - ETFs only, pre-clearance
       | required, 30 day holding periods, limited to using only a list of
       | 5 approved brokers.. and sometimes all of the above.
       | 
       | The restrictions apply not just to spouses but to anyone in
       | household, and you have to attest you are reporting any holdings
       | of say.. your parents, if you still live at home.
       | 
       | So the mother of a live-at-home college grad tech support analyst
       | who plugs in phones at a bank has more trading restrictions than
       | senior politicians :-)
        
         | Havoc wrote:
         | > and sometimes all of the above.
         | 
         | And you need to grant them access to the broker data feed and
         | no derivatives.
         | 
         | It's in part why I'm suddenly into crypto.
        
           | steveBK123 wrote:
           | lot of them banning crypto or requiring disclosure as well
        
       | paulpauper wrote:
       | this is the guy who spams literally all of chamath's tweets and
       | everyone else in involved with finance and investing
        
       | asdev wrote:
       | This can be solved by having trading of securities on an open
       | blockchain. Have insiders/government officials sign time locked
       | transactions ahead of time for the entire world to see.
        
       | Zelphyr wrote:
       | Until we all start holding these people more accountable, and
       | better educating ourselves on the issues, nothing is going to
       | change and they know it.
       | 
       | Here is, in particular, what they know: We as a whole despise
       | Congress but somehow manage to convince ourselves that, "My
       | representative is the only one who is honest!" so we re-elect
       | them over and over again.
       | 
       | Here is another thing they know: the number of people I know
       | personally who bitch and complain about issues based purely on
       | headlines they've read or heard (note, it's ONLY the headlines.
       | they can't be bothered to actually read the article) is, for me,
       | astounding. In other words; the people don't want to do the work
       | of really educating themselves and the politicians take advantage
       | of that.
       | 
       | Let me say it again. Until we educate ourselves and demand that
       | the people we elect be more accountable to us, the people, then
       | they will. not. change.
        
       | vmception wrote:
       | I don't have a problem with this.
       | 
       | Did this really harm your confidence in the markets, or did it
       | only harm your confidence in politicians who have been doing this
       | for hundreds of years whether there was mandatory disclosure or
       | not?
       | 
       | Insider trading regulations are based around people feeling
       | willing to use the capital markets at all. People use the US
       | capital markets, so expanding that regulation is not necessary.
       | 
       | For the latter observation, I would like there to be quicker
       | reporting so that we can trade alongside it.
        
       | bluecalm wrote:
       | One thing that comes to mind is that maybe stock market is to
       | nervous reacting to news. Microsoft isn't worth suddenly 5% more
       | or less depending what some politician says on a given day.
       | 
       | I mean insider trading should be illegal especially for real
       | insiders. That I am not arguing. The market just seems to easy
       | too spook and not that efficient to me.
        
       | hastes wrote:
       | Pelosi makes millions during the 'deadliest pandemic in history'
       | and no one turns an eye. Problem is this will fade away like
       | every single other important topic of these ruling elites, who
       | don't give a single f*k about you or me or any social issues.
       | 
       | They are plainly there to shove through their friends interests,
       | profit off of insider information, and get out without going to
       | jail. Every single one of them.
        
         | ffff0ffffff wrote:
         | Pelosi is a FUCKING CUNT! FUCK THAT BITCH!
        
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