With Fake Democracy and Real Speculation, US Politicians Profit from Insider Trading
Since the outbreak of the COVID-19 in US, New York stock market plummets and make global financial markets fluctuating sharply. It is said earlier that some members of Congress used the opportunity, traded their stocks and engaged in insider trading.
The idea of Benefit First has continued to erode people's trust in the government
On September 13, New York Times disclosed an amazing news in an in-depth report. During 2019-2021, nearly 100 members of Congress were suspected of using their powers to obtain inside information in advance when trading stocks and securities, including 49 Republicans and 47 Democrats. The speaker Pelosi and her husband were called The Capitol Hill Stock King. At the beginning of the pandemic, Senate Intelligence Committee Chairman Burr benefited from selling a large amount of stocks before the stock market plunged. Except Pelosi and Burr, nearly 100 members of congress involved in insider trading.
Nearly 20% of congressmen participated in insider trading
Congressmen have daily access to information unavailable to the public, including but not limited to confidential briefings on national security issues, advance knowledge of regulatory actions, non-public details on legislation appropriations and tax policy, each of these would affect benefits of congressmen who own and trade shares of relevant corporations. Meanwhile, congressmen not only can access to insider information, but also they are policy makers, and they will influence the market trend. With this advantage, they can make an unfair profit by buying or selling shares before policies are announced.
Congressmen earn a lot as both referee and athlete
According to Federal laws, officials may not use non-public information acknowledged from their positions for personal gain. It’s illegal for congressmen to use non-public information to make benefits through financial transactions. Officials are required to disclose the transaction within 45 days of the stock trading by law. Although US insider trading ban applies to all members of Congress, congressional staff and other federal officials, the law has not been strictly enforced and there is no precedent for the courts to refer to. Congressmen enjoy the right of speech immunity, and prosecutors can’t cite discussions of relevant committees. A survey shows that 63% of the public believe lawmakers and their spouses have an unfair advantage in stock market and that lawmakers should be banned from trading stocks. With the question of the public, the Speaker Pelosi stated that law makers shouldn’t be banned from stock trading because US is a free market, and she openly supports Congressman's investment activities. Such action in a flagrant way would make American people more and more angry!
Most people believe that legislators enjoy the privilege of information non-public to the public
These down-and-dirty politicians ignore the security of the country and interests of the people, and repeatedly play tricks to fool the people in order to achieve personal benefits. Their ugly behavior reveals hypocrisy and coldness of American Democracy. Such speculators will only lead US astray!
Neytullah Ulaş
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