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View Diary: LOOKS LIKE INSIDER TRADING ERIC CANTOR, Please Explain (123 comments)

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  •  Umm... (4+ / 0-)

    This doesn't look like insider trading to me, much less something that would be affected by what Obama is proposing.

    What Obama proposes, I wholeheartedly agree with-- members of Congress should not be able to trade on stuff they know before it becomes public knowledge-- specifically and most importantly, information about pending legislation.  There should be a law that outlaws that kind of trading.

    But here, you have not either of the vital aspects of that kind of insider trading:  you have alleged no special knowledge that Cantor would have had in his role as a legislator, and you have not even alleged a trade, much less a trade that occurred after he had special knowledge in his role as a legislator but before the same knowledge was publicly available.  

    Please do not look at our Democratic reps asset holdings; you will be shocked to see that they also own stocks, and shockingly, some of them may have actually gone up in value!

    What you seem to want is a law that prohibits members of Congress from owning stock.  While that would certainly eliminate the possibility of insider stock trading, that ain't happening.

    •  Did you read the diary? (2+ / 0-)
      Recommended by:
      NearlyNormal, aliasalias

      This is covered

      you have alleged no special knowledge that Cantor would have had in his role as a legislator, and you have not even alleged a trade, much less a trade that occurred after he had special knowledge in his role as a legislator but before the same knowledge was publicly available.  

      It's difficult to be happy knowing so many suffer. We must unite.

      by War on Error on Fri Jan 27, 2012 at 02:35:50 PM PST

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      •  I even followed your links! (7+ / 0-)

        Sorry, there's just no insider trading here.  

        He's certainly not guilty of insider trading based on the establishment of a dairy subsidy in 1995-- ten years before Cantor bought the stock, and six ears before Cantor got into Congress.

        He's not guilty of insider trading based on a decision made by the executive branch, two years after he purchased the stock, for a one-time, $12 million advertising subsidy for a company with over a billion in revenues that was likely not material to the value of his stock anyway.

        You certainly have no evidence of insider trading based on legislation that declares pizza a vegetable for the purpose of school lunches in 2011, six years after the only transaction in the stock that you have alleged.  While this could have benefitted Dominos due to the fact that Dominos does sell pizza for school lunches, we can't say anything about Cantor's trading around that event yet anyway, since we do not even have his financial disclosures for 2011.

        An insider trading law would not prohibit Cantor from taking legislative action to benefit companies in which he already owned stock.  Presumably, legislators would be trying to pass legislation that did benefit businesses, including ones they own.  To the extent that they favor businesses they own, it certainly can rise to the level of corruption, but unless they are TRADING on insider knowledge they have as a legislator, it is not corruption in the form of insider trading.

        •  It's like smoking and cancer... just a statisitic (1+ / 0-)
          Recommended by:
          War on Error

          for many years... the why and how were not known but a statistical link was clear... but denied by many.

          So too with Congress... there is a statistical link between being elected to it and net worth doing very well... not to mention plum jobs afterwords as a reward for many...

          Sure some are rich already... but that only gives them a head start... and some do not do quite as well as others.

          But the details as to why are as varied as there are members of congress... individual "initiative"... who they know who backs them, what industries are in their district/state etc... but they sure do well out of it...

          Where there is smoke there is fire... and the smoke get much thicker for those who get into office... it is not all corruption... who you know is always important in building wealth and congress is all about meeting people... many people and info does get imparted... keeping it all as fair and legal as is reasonably possible?
          ....very tricky.

          Is there a cure? well prevention does help to some degree.. people will still get lung diseases from pollution etc but cleaning up the details of what congress members do with investments might help... if the quid pro quo is delayed (nice job later) or spouses/family members do not get very nice positions all of a sudden that are arranged to not have any apparent links to the work in congress... well it might help.

          When there is corruption and there isn't is hard to pin down and it is that way intentionally.... and meant to resist digging and the more that is allowed and the more digging is prevented the more that the less disguised stuff will just pop out in plain sight... but these days even then there seems to be selective attention as to who gets investigated...

          Pogo & Murphy's Law, every time. Also "Trust but verify" - St. Ronnie (hah...)

          by IreGyre on Sat Jan 28, 2012 at 01:58:52 AM PST

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          •  and unfortunately (1+ / 0-)
            Recommended by:
            War on Error

            if any law or laws were passed to prohibit any of these things in the discussion, congress would just give themselves investigative powers making the outcomes of any investigations a slap on the wrist, like they do in almost all of the ethics investigations.

            One of the striking differences between a cat and a lie is that a cat has only nine lives. - Mark Twain

            by KosKomposer on Sat Jan 28, 2012 at 07:29:43 AM PST

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