Unusual Stock Trading by Whales in US Congress • Hacker News Board

Re: Unusual Stock Trading by Whales in US Congress

#21

Post by mabbo » Thu, Apr 15, 2021, 4:46 PM UTC

toomuchtodo wrote: post #16

mabbo wrote: post #9

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?

https://www.politico.com/news/2020/12/18/elizabeth-warren-st... https://www.warren.senate.gov/imo/media/doc/Anti-Corruption%...

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.

Re: Unusual Stock Trading by Whales in US Congress

#22

Post by delecti » Thu, Apr 15, 2021, 4:46 PM UTC

monkeybutton wrote: post #11

CameronNemo wrote: post #3

Earlier quoted context omitted.

Real time? No. The legislators have to report their trades a couple months after they make them, IIRC.

That's unfortunate; If was real time a copycat investment strategy would work, right?

IIRC, the same law that requires them to report their trades makes it illegal to use that data to profit.

Re: Unusual Stock Trading by Whales in US Congress

#23

Post by toomuchtodo » Thu, Apr 15, 2021, 4:47 PM UTC

mabbo wrote: post #21

toomuchtodo wrote: post #16

Earlier quoted context omitted.

https://www.politico.com/news/2020/12/18/elizabeth-warren-st... https://www.warren.senate.gov/imo/media/doc/Anti-Corruption%...

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.

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.

Re: Unusual Stock Trading by Whales in US Congress

#24

Post by aaomidi » Thu, Apr 15, 2021, 4:47 PM UTC

mabbo wrote: post #9

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?

If this starts making a stink, they're going to create the ability to not report your stock purchases.

Re: Unusual Stock Trading by Whales in US Congress

#25

Post by gumby » Thu, Apr 15, 2021, 4:47 PM UTC

maxwell wrote: post #10

mabbo wrote: post #9

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?

Constitutional amendment?

That's a very blunt instrument and difficult to get the wording correct.

Re: Unusual Stock Trading by Whales in US Congress

#26

Post by mattnewton » Thu, Apr 15, 2021, 4:47 PM UTC

abfan1127 wrote: post #13

mabbo wrote: post #9

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?

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.

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.

Re: Unusual Stock Trading by Whales in US Congress

#27

Post by gadders » Thu, Apr 15, 2021, 4:48 PM UTC

sakopov wrote: post #15

> 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…

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.

Re: Unusual Stock Trading by Whales in US Congress

#28

Post by aaomidi » Thu, Apr 15, 2021, 4:49 PM UTC

mabbo wrote: post #9

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?

> 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.

Re: Unusual Stock Trading by Whales in US Congress

#29

Post by prussian » Thu, Apr 15, 2021, 4:49 PM UTC

finexplained wrote: post #17

Members of congress should only be allowed to invest in SPY/VOO, VTI, and a few other broad ETFs, long only, no options.

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.

Re: Unusual Stock Trading by Whales in US Congress

#30

Post by [deleted] » Thu, Apr 15, 2021, 4:50 PM UTC

mabbo wrote: post #12

maxwell wrote: post #10

Earlier quoted context omitted.

Constitutional amendment?

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…

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