Self enriching corrupt bastards

By Dave Anderson:

The looting continues.

Via The Monkey Cage is a recent study looking at Congressional stock returns:

We measure abnormal returns for more than 16,000 common stock transactions made by approximately 300 House delegates from 1985 to 2001. Consistent with the study of Senatorial trading activity, we find stocks purchased by Representatives also earn significant positive abnormal returns (albeit considerably smaller returns). A portfolio that mimics the purchases of House Members beats the market by 55 basis points per month (approximately 6% annually).

Over 30 years, 10,000 invested at 6%, which is a slightly optimistic return assumption would produce $54,000 before taxes and management fees. However that same $10,000 at 12% has a lump sum of $267,000 before taxes and fees.

I am less concerned about the legalized corruption of campaign finance restrictions and work arounds, and more concerned abuot personal enrichment through the good old boys network as that is where the money can really be made as funnelling money from a campaign account to a personal account is too risky, too noticable and too much of a pain in the ass, while setting up a compliant Congresscritter with a can't miss investment is much more "understandable" and harder to prove, especially in a poltiical culture where we must "look forward" instead of prosecuting corrupt and self-enriching bastards.