Monday, November 14, 2011

Making a few extra bucks...

I'm sure this was a one-time deal, it's not like these Congressmen would do this regularly... jeez louise  Pete Rose is vilified for gambling on baseball and our Congress bets the economy will crash while many are pushing policies to ensures it continues to crash, at least until after the 2012 election.

" The world's greatest deliberative bodies are exempt from insider trading laws, even though its members get quicker access to market-moving information than almost anyone else."..".Rep. Spencer Bachus (R-ALA), then ranking member of the House Financial Services Committee, bet against the market as it collapsed in 2008. Schweizer finds "no less than forty options trades" in Bachus's records from July 2008 to November 2008. The trades made him wealthier; almost nobody else had the information he had, and could have made them.

"... What Bachus and his colleagues heard behind closed doors was stunning. As Paulson recounts, “Ben [Bernanke] emphasized how the financial crisis could spill into the real economy. As stocks dropped perhaps a further 20 percent, General Motors would go bankrupt, and unemployment would rise . . . if we did nothing.” The members of Congress around the table were, in Paulson’s words, “ashen-faced.”  Bernanke continued, “It is a matter of days before there is a meltdown in the global financial system.” Bachus was among those who spoke. According to Paulson, he suggested recapitalizing the banks by buying shares.  The meeting broke up. The next day, September 19, Congressman Bachus bought contract options on Proshares Ultra-Short QQQ, an index fund that seeks results that are 200% of the inverse of the Nasdaq 100 index. In other words, he was shorting the market. It was an inexpensive way to bet that the market would fall."
More HERE

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