There is actually a pretty good case for the idea that insider trading should not be illegal. That information is information and that sales or purchases of stocks based on such information just makes the market more efficient.
That aside it is still illegal and that means if you and I were to engage in it we might go to jail. For others however this does not seem to be a concern.
The Fed Agrees.
Professor Jeremy Siegel thinks it is.
I remember when Bernanke said he was going to keep rates at 0 until 2014 and everyone was up in arms. Now he’s telling us that we had better get used to lower than natural interest rates and all the distortion it creates in the economy for the next 30 years or so.
“Unholy trinity,” insanely tangled web of political insider dealing, chose your metaphor. This from Ed Ring.
It’s been an interesting if not fun ride up in the markets. Through a 6-year economic slowdown stock markets have rallied and rallied and rallied. Everyone assumes that the Fed is backstopping the market, that it has to for political reasons. So people have piled in even though earnings and economic indicators have been generally lackluster. Sounds almost like “house prices never go down.”
But not quite.
Bush was a corporatist. There is no doubt about that. Obama is a corporatist as we have documented over and over and over. But Hilary Clinton is taking things to a new level. She is tight with the banks, pharma, defense, you name it. She watched Glass-Steagall twitch and die at her husband’s hand from the guilded confines of the White House. She is a crony capitalist through and through.
An excellent piece from Mark Hendrickson at Forbes.com.
He is right on the money. The size and scope of the government is a threat to our liberties. A massive political class has emerged in this country. At the lower levels it’s public school teachers (Certainly not most teachers. Most teachers are interested in teaching.) county clerks, and water use inspectors. At the top are the folks in Congress, the President, the Pentagon and the alphabet soup agencies. It is Leviathan and it grows each and every day.
I am actually willing to buy the “don’t worry it was a hard winter” theory to a some extent. I am fairly sure there are now glaciers forming in the Blue Ridge Mountains to my west.