Not the party of the rich, oh no, I mean they are the party of enriching themselves while America wades through a phony recovery. All the talk about the Republicans being in bed with big business like some kind of mob mentality actually turns out to be true-for the Democrats.
Don’t get me wrong. There are plenty of greasy hands on the Republican side, but it pales in comparison to the Democrats in Congress. A publication called Business and Politics published a study that shows that when it comes to big business, Republicans can’t hold a candle to the Dems. The report says that investments by congressional members, such as stocks and bonds, outperformed those of the average investor by 55 basis points per month. A basis point is 1/100 of a percent. Do the math. That’s over five percent every month. Republicans and Democrats both are in on the party, but the Dems are far more profitable.
Democrats beat the market by 73 basis points per month, compared to 18 for Republicans. That’s a rout anyway you look at it. Senators fare even better than house members.
Let me tell you, from someone who has invested for years, picking the right stock is a whole lot of investigating, and almost as much luck. I’ve had more of the former than the latter. 73 basis points is astounding. On a consistent basis, it seems almost impossible. In my opinion, it is impossible, unless…you’re privy to information that others don’t have. I have no proof of this, and either do the authors of the study, but the ability of congressional Democrats to pick winning stocks over and over again defies the laws of chance. Even worse, if you or I acted on insider information, we would suffer the same fate as Martha Stewart did a few years back. Apparently, those laws do not apply to Congress.
Strict laws ban corporate executives from trading on their insider knowledge, but no restrictions exist for members of Congress. Lawmakers are permitted to keep their holdings and trade shares on the market, as well as vote on legislation that could affect their portfolio values.
They must mean insider information gleaned through government channels. They can’t be immune from laws barring direct insider information, can they? Or can they? After all, the same Congress that is benefiting from these stock deals are the same ones that make the laws. They could be exempt. And unless you are familiar with jumbled legalese, they could point to thousands of pages of documents to bolster their case. That’s assuming you could even prove that they did act on insider information.
There’s nothing wrong with being rich. I aspire to that myself. But the monthly investment gains Congress enjoys means that they are cashing out when the tide is high. They come in low and cash out when the stock is high. No see-saw for Congress. I challenge anyone to pull that off consistently month to month. For the rest of us, we have to pick stocks that amounts to rolling the dice, or hope our 401k somehow shows some gains. Congress is bypassing that game of Russian Roulette.
The next time you hear a Democrat talking about the party of the rich now you’ll know that they’re referring to themselves.