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by kspacewalk2 196 days ago
> Or, you can remove yourself from the investment/ownership vehicle during the term you serve as a congressperson.

The problem with "blind trusts" is that even blind men wink and nudge. It's quite hard to police a veritable horde of Congressmen who pinky-swear to never pass information along to friends, relatives and various other associates, employed by them or otherwise.
3 comments
matwood 196 days ago
Which can be solved with insider trading enforcement of political figures and their associates. This SEC already does this to 'normal' people.
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kspacewalk2 196 days ago
It can be. But it's quite hard. And frequently unsuccessful. The concept of "insider trading" sounds great and unambiguous until some examination, but becomes quite ripe for loophole-finding exercises afterwards.
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zucked 196 days ago
I honestly don't know how you put a cone of silence around congresspeople such that insider trading anywhere in their sphere of influence is impossible. My intent would be to make it difficult for the congressperson to directly benefit from passing along insider info and compensate them enough such that it isn't a practical path. Sure, they could still tell friends to buy/sell, but if the friend *does* act on that, it's sure going to raise eyebrows when they try to wire $1M worth of proceeds to the congressperson for "movie & pizza night".

And I know that the next stone to be cast is "yeah, but if they help friends/business associates beat the market, congresspeople can still benefit with board seats and jobs when they're done with congressional terms". That's totally valid, and I have no idea how to combat that.

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kspacewalk2 196 days ago
Forget pizza night IOUs. Lots of very smart people have come up with lots of clever ways to pay someone for a service, ways that don't even register when it comes to public awareness. I could have bought this house from you for 1.5 million, but I'm going to buy it for 2.5 million because I simply must have it. Man, what a sucker, eh?
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Aaargh20318 196 days ago
> The problem with "blind trusts" is that even blind men wink and nudge.

They should only be allowed to invest in a fund that is open to public participation. This should also be public information. You should be able to pick a congresperson and invest in the exact same funds that they do.

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