Wall Street Journal promotes Insider Trading? WTF?

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Wall Street Journal promotes Insider Trading? WTF? - 10/26/2009 12:18:11 AM

Alphascendant

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I don't pay much attention to the stock market, and this is probably why.....

http://online.wsj.com/article/SB10001424052748704224004574489324091790350.html

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RE: Wall Street Journal promotes Insider Trading? WTF? - 10/26/2009 12:29:49 AM

Kirata

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quote:

ORIGINAL: Alphascendant

I don't pay much attention to the stock market, and this is probably why.....

You obviously don't pay much attention to what you read, either. Do you understand the case being made? Did you notice the credentials of the author and the people he cites? Would you care to refute their arguments? Or are you just looking to start another "ain't it awful" crank thread?

K.

< Message edited by Kirata -- 10/26/2009 12:49:21 AM >

(in reply to Alphascendant)

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RE: Wall Street Journal promotes Insider Trading? WTF? - 10/26/2009 1:14:03 AM

Alphascendant

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Actually, it was mildly surprising that this wasn't introduced here already. The points being made did make sense, but insider trading is illegal as it is interpreted now. Finding it difficult to trust anything that is proposed by the federal government, the corporations, or the banks as being anything short of looking for another way to stick it to the average working person, this article appears, to me, to be a sign that the laws on insider trading will be adjusted so the suits and ties can stick it to the public even more. I put this out here to open to debate, but probably should have posted in the Random Stupidity section.

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RE: Wall Street Journal promotes Insider Trading? WTF? - 10/26/2009 2:02:59 AM

Kirata

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quote:

ORIGINAL: Alphascendant

Finding it difficult to trust anything that is proposed by the federal government, the corporations, or the banks as being anything short of looking for another way to stick it to the average working person, this article appears, to me, to be a sign that the laws on insider trading will be adjusted so the suits and ties can stick it to the public even more.

Well, in this instance the case is being made by law professors, not the government, corporations, or banks. And far from looking to stick it to the average person, the argument they are advancing is that the public interest is not served by current law.

K.

< Message edited by Kirata -- 10/26/2009 2:03:36 AM >

(in reply to Alphascendant)

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RE: Wall Street Journal promotes Insider Trading? WTF? - 10/26/2009 5:31:37 AM

Alphascendant

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Indeed, and if any of those three entities were to directly promote insider trading the public might suspect something suspicious, so let's pay off a few noted law professors to lobby against the current law and possibly get the public to swallow it. If there is information on whether the value of a stock is about to rise or fall, it seems the idea would be to sell it to the highest bidder. Since the money trail always leads to the bank, that appears as a good way for the Federal Reserve to gain even more control over everything on a pace even faster than they are on now. Ever seen that documentary "The Money Masters?" It's available online.

This case isn't being made by the government, corporations or banks? Boudreaux is a Senior Fellow at the Mercatus Center. What do they do there? Why, they work with policy experts, lobbyists, and government officials to connect academic learning and real-world practice." and "is entirely funded through donations," including from energy company Koch Industries, a direct connection to the oil industry of which one of it's 42% shareholders has supposedly been quoted as stating that stock in his company would be offered publicly, "literally over my dead body."

http://en.wikipedia.org/wiki/Mercatus_Center
http://en.wikipedia.org/wiki/Koch_Industries

I suppose the next step is to devaluate the reliability of those sources.

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RE: Wall Street Journal promotes Insider Trading? WTF? - 10/26/2009 8:46:53 AM

willbeurdaddy

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quote:

ORIGINAL: Kirata

quote:

ORIGINAL: Alphascendant

I don't pay much attention to the stock market, and this is probably why.....

You obviously don't pay much attention to what you read, either. Do you understand the case being made? Did you notice the credentials of the author and the people he cites? Would you care to refute their arguments? Or are you just looking to start another "ain't it awful" crank thread?

K.

not to mention that he's conflating an opinion piece by a libertarian prof in the "Life and Style" section with "promoting insider trading".

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RE: Wall Street Journal promotes Insider Trading? WTF? - 10/26/2009 10:21:23 AM

Kirata

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quote:

ORIGINAL: Alphascendant

let's pay off a few noted law professors to lobby against the current law and possibly get the public to swallow it.

Attacking the messenger instead of the argument isn't going to score you any points with me.

K.

(in reply to Alphascendant)

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RE: Wall Street Journal promotes Insider Trading? WTF? - 10/26/2009 10:31:11 AM

slvemike4u

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I found it somewhat comical that one of his arguments was based on not being able to prosecute for "non-trades" that didn't take place as a result of insider information....very curious!

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RE: Wall Street Journal promotes Insider Trading? WTF? - 10/26/2009 11:26:50 AM

AnimusRex

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I read the article through, and while the author makes some good points, I wonder if he has thought this through.

Since most stocks are held by large institutions or heavy investors, allowing insider trading will create a secondary market in knowledge; right now, I can request the balance sheet and other information from any publicly traded company; I cannot get insider information. Buying is only done when the holder thinks his stocks are not going to go up; so allowing insider trading only creates an incentive to game the system, of spreading then witholding certain information in order to get the buyer or seller to think their stock is eitehr under or overvalued.

Stock brokerages already have a tendency to pick the best investments for their biggest clients, and push the smaller less profitable cllients into the worst funds; they get the same fee anyway, and a small investor is likely to be less demanding of poor returns than a big investor.

So if insider trading were allowed, as a small investor, I would be buying blind, while large funds buy with knowledge.
The long term effect of this is to cause a general loss of faith in the markets; anyone who puts their money in a 401(k) or individual account would be a fool.

(in reply to Alphascendant)

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RE: Wall Street Journal promotes Insider Trading? WTF? - 10/26/2009 11:33:46 AM

willbeurdaddy

Posts: 11894
Joined: 4/8/2006
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quote:

ORIGINAL: AnimusRex

I read the article through, and while the author makes some good points, I wonder if he has thought this through.

Since most stocks are held by large institutions or heavy investors, allowing insider trading will create a secondary market in knowledge; right now, I can request the balance sheet and other information from any publicly traded company; I cannot get insider information. Buying is only done when the holder thinks his stocks are not going to go up; so allowing insider trading only creates an incentive to game the system, of spreading then witholding certain information in order to get the buyer or seller to think their stock is eitehr under or overvalued.

Stock brokerages already have a tendency to pick the best investments for their biggest clients, and push the smaller less profitable cllients into the worst funds; they get the same fee anyway, and a small investor is likely to be less demanding of poor returns than a big investor.

So if insider trading were allowed, as a small investor, I would be buying blind, while large funds buy with knowledge.
The long term effect of this is to cause a general loss of faith in the markets; anyone who puts their money in a 401(k) or individual account would be a fool.