Wednesday, March 15, 2006

Institutionalized Corruption: Senators who play the stock market do very, very well

"Senators consistently anticipated movements in stock prices: they often purchased stocks just before prices took off like a rocket, and revealed an uncanny ability to sell just when a stock was about to flatten out. [...] 'Nobody gets results like this in the financial world consistently and over the long term,' notes Professor Tom Ferguson, who studies money in politics at the University of Massachusetts-Boston. Any manager of a mutual fund, in fact, who regularly beats the market by as little as two percent annually is considered an investment genius." - story