Monday, November 14, 2011
What would you do if Fed Chairman Ben Bernanke and Treasury Secretary Hank Paulson gave you a confidential briefing on the day before the 2008 financial crisis - a briefing in which they said everything was going to hell? Well, if you are Rep. Spencer Bachus (R-AL) the anwer is clear - you rush out and buy Proshares Ultra-Short QQQ the next day.
I suppose insider trading is illegal unless you are congressman. Unfortunately, this isn't even a new story! See papers from Donna Nagy and Stephen Bainbridge on congressional insider trading. Moving on.