One of the disappointments of the 2020-2022 House session was the failure of the Democrats to force House members to somehow isolate their House careers from their investment accounts, and some citizens are furious that nothing was done. So what’s the best way to convey the message? I like this one:
Watchdog groups have long believed that some lawmakers use [non-public information disclosed to members of Congress in private hearings and meetings] to make money in the stock market. Now a loose alliance of traders, analysts and advocates is trying to let Americans mimic the trades elected officials make, offering tongue-in-cheek financial products — including one named for former House speaker Nancy Pelosi (D-Calif.) and another that refers to Sen. Ted Cruz (R-Tex.) — that track purchases and sales after lawmakers disclose them. [WaPo]
Their goal?
“Our mission isn’t to make everyone millionaires — it’s actually to highlight the hypocrisy of congressional trading in an effort to bring more transparency and trust back into our government,” said Christopher Josephs, the founder of Autopilot, an app that allows ordinary investors to mimic the trades of leading politicians, top hedge funders and other famous traders. “Hopefully it’s helping, but our slogan is, if you can’t beat them, join them.”
It might actually make the Congressional members richer, as increasing the demand for certain stocks will drive the price higher, and then when they sell the Congressional members will be the first ones out.
I do have concerns about what I’ll call non-organic trading, but at this point I’m reaching the edge of my experience. It sort of feels like a positive feedback loop, but I am uncertain that is true.
