Members of Congress: SECOND HIGHEST PAID LEGISLATORS IN THE WORLD – Japan is number one. Non-fiction book, ‘Throw Them All Out: How Politicians And Their Friends Get Rich Off Insider Stock Tips, Land Deals, And Cronyism That Would Send The Rest Of Us To Prison • In 2009, with the rest of the country mired in recession, members of Congress nonetheless saw their net WORTH INCREASE BY 6%, while the average Americans net worth PLUNGED BY 22%. Reuters even ran a story on the subject, titled “Get Elected To Congress And Get Rich.” • A study in the ‘Journal Of Financial And Quantitative Analysis’ found that U.S. senators may have missed their calling: they should all be running hedge funds. How else to explain these results, based on 4000 stock trades by senators. - The average American investor underperforms the market. - The average corporate insider, trading his own company’s stock, beats the market by 7% a year. - The average hedge fund beats the market by between 7% and 8% a year. - THE AVERAGE SENATOR BEATS THE MARKET BY 12% A YEAR. - When 16,000 trades by members of the House of Representatives, similar if less spectacular results were found, where House members beat the market by 6% a year, almost as much as what corporate insiders achieve when trading their own stock. • Another study, by scholars at MIT and Yale, looked at a shorter period of time, from 2004 to 2008, and found that while many individual legislators do not beat the market, they do extremely well with stock in companies with which they are “politically connected.” They beat the market by almost 5% a year. Non-fiction book, ‘Throw Them All Out: How Politicians And Their Friends Get Rich Off Insider Stock Tips, Land Deals, And Cronyism That Would Send The Rest Of Us To Prison,’ by Peter Schweizer. barnesandnoble/w/throw-them-all-out-peter-schweizer/1103867500?ean=9780547573144.
Posted on: Sat, 10 Aug 2013 19:55:36 +0000
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