Sunday, June 12, 2011

Congressional Investment Geniuses

Evidently members of congress are investment geniuses as evidenced by this story that was covered by the Huffington Post:

Four university researchers examined 16,000 common stock transactions made by approximately 300 House representatives from 1985 to 2001, and found what they call "significant positive abnormal returns," with portfolios based on congressional trades beating the market by about 6 percent annually.

Here is the citation for the article which was the source of the Huffinton Post story:

Ziobrowski, Alan J.; Boyd, James W.; Cheng, Ping; and Ziobrowski, Brigitte J. (2011) "Abnormal Returns From the Common Stock Investments of Members of the U.S. House of Representatives," Business and Politics: Vol. 13: Iss. 1, Article 4.

This article only added to my disgust of how power in this country has corrupted the political process and money is absolutely the king, or the god, to which we all now must bow. I read stories about people being charged with insider trading while congress has been doing this for years.  I thank the authors of the study for their painstaking work which documents just one of the many abuses

I want elected officials who:

Do not have fake tans
Do not wear cuff links
Are not millionaires
Do not have better healthcare or retirement benefits than I do
Do not show naughty pictures of themselves on social media
Do not cheat on their wife, and take part in raising their kids

We continue to have a political process that elects people who are completely  out of touch with the average citizen. The Tea Party folks are rightly upset at the current political process, but have hitched their wagon to the wrong star.   Also, their movement is one that is being turned against the citizenry rather than one that will liberate it.  Why is the middle class so enamored of cannibalism, so fond of fratricide, and so averse to seeing the truth of their situation?

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