must read article : Senators' investment portfolios show abnormally high returns

[robinlynne]

outperforming even hedge fund managrers portoflios....

link:
http://www.nytimes.com/2011/07/10/business/mutfund/congressional-portfolios-outpacing-the-market-essay.html?_r=1&ref=mutfund

[valerief]

1. What a surprise. NOT. nt

[dkf]

2. Irony is the best performers were the health care stocks.

[Javaman]

3. Don't hold your breath if you think there ever will be an investigation into this...

you think SS and Medicare are a 3rd rail? (Obama proved today that they aren't). But the private wheelings and dealings of our beloved congress peoples inside trading will never ever be touched. It's not only a 3rd rail, it's radioactive mafia style.

There is an old joke in Mexico. It goes: how do you become rich? become a politician.

[ProSense]

4. "outperforming even hedge fund managrers portoflios"

Who is responsible for this study?

It's always a red flag when hedge fund managers are portrayed as not as bad a politicians.

Yeah, just in time for Republicans to attack Wall Street reform.

[robinlynne]

12. a university. read the article. The hdege fund managers are there only to

portray what the statistical probabliities are, to show that it is way beyond probable that cheating is involved.

[xchrom]

5. I can't even get pissed about something like this.

& I should be pissed.

[Marrah_G]

6. I'm right there with you

why even get angry....nothing will be done. The foxes have been guarding the henhouse for a long time now.

They get richer and richer and then scream "Gays, Guns, Abortions" every few years to get people to the polls. They do it time after time and we the people fall for it time and time again.

[dissidentboomer]

7. And folks are concerned that Congress should sacrafice

their (i.e., civil service) retirement and benefits like everyone else??? LOL! Please, they will gladly do that and feign pain and suffering, as it will not hurt them one bit. What Robin has found is THEIR retirement fund. Cutting "congressional benefits" would hurt and would be a big sacrafice.... but not for them.... for the "little people" who WORK FOR THEM.

[ProSense]

8. More information

via Open Secrets

<...>

The findings were made by a team of professors after measuring abnormal returns for more than 16,000 common stock transactions made by about 300 House members from 1985 to 2001.

Congressmen are allowed to trade common stocks without special restrictions, and they do not have to recuse themselves from voting on legislation that could affect the values of their stock holdings. But, according to the report, legislation has been proposed in Congress to limit trading by members and their staffs.

Other interesting findings from the review:

• Purchases made by House members beat the market by 55 basis points per month, or about 6 percent annually.
  
  
• The magnitude of the abnormal returns among House members was substantially smaller than those earned by Senators during the same time span.
  
  
• Stocks purchased by the junior representatives significantly outperform stocks purchased by the most senior representatives.
  
  
• Stocks purchased by Democrats also outperform those purchased by Republicans.

<...>

[Broderick]

9. They are exempt from insider trading charges

That is partly why.

[spanone]

10. well, they are the ultimate inside traders

[Canuckistanian]

11. Investment companies should offer "Senator's Funds"

"6% greater return!"

No, wait. That wouldn't work. It would have to be more specific.

Like the "Max Baucus Fund", heavily invested in health care companies.

[BillyJack]

13. No surprise.....they have the 'inside information' and control policy....

...I'm not saying it's "right"....just a normal outcome (get a clue, as to WHY a candidate will spend millions of dollars of their own money, or be given money by important donors. Don't you think they are FULLY EXPECTING a 'return on their investment'?!....of COURSE, they are (and they'll get it too!)

[Dawson Leery]

14. That explains alot.