Ask the Politically Correct!
(Reading between the lines)
What is Insider Trading/Investing and does Congress take
advantage of their legalized "Insider Information"?
Politically Correct Resolution:
Insider trading/investment is the trading/investment of a
"corporation's" stock or other securities by individuals with
potential access to non-public information about the "company".
In most cases, trading/investment by "corporate insiders" such
as officers, key employees, directors, and large contributors
(Special Interests) may be legal, if this trading/investment is
done in a way that does not take advantage of non-public information
(information not intended for the eyes of the general public). However,
the term is frequently used to refer to a practice in which an insider
or a related party invests based on material of non-public information
obtained during the performance of the insider's duties at the
"corporation", or otherwise in breach of a fiduciary or other
relationship of trust and confidence or where the non-public
information was "misappropriated" from the "company".
Members of the U.S. Congress are not exempt from the laws that
ban insider trading/investment, however, they generally
do not have a confidential or fiduciary relationship
with the source of the information they receive and
accordingly, do not meet the definition of an "insider".
(Legislators have protected themselves from the laws that they
have passed with a "Safe Harbor" provision).
Congress's safe harbor provision.
A safe harbor is a provision of a statute or a regulation
that reduces or eliminates a party's liability under the
law, on the condition that the party performed its actions
in good faith? or in compliance with defined standards?.
Legislators include safe-harbor provisions to protect
legitimate? or excusable? violations, or to exercise the
adoption of desirable practices (such as using insider
information on future laws for their personal gain).
(Information from Wikipedia used in part for the above)
About 57 members of Congress are part of the 1% of the
richest Americans. About 11% of Congress have a net worth
of approximately 9 million dollars, according to a
USA TODAY analysis of 2010. That's enough to place them
in the top 1% of wealth. Congress has 250 millionaires.
Nine times the typical household. The richest is
John Kerry (married wealth)! All members of Congress have
"Blind Trust Funds" in their family member's names of which
they can invest in the areas that they glean from "Insider
Information" or cause to effect a law that will benefit
them personally! Thus the asinine statement, "We have
to pass the law before we can find out what's in it"!
What Congress is actually saying, "We have to pass this
law before the general public finds out what's really
"COMMODUM EX INIURIA SUA NEMO HABERE DEBET"
(A wrong doer should not be enabled by law to take
advantage of their actions)