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(CNBC)   Look, insider trading is pretty complicated, so let's just legalize it   ( cnbc.com) divider line
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1774 clicks; posted to Business » on 17 Jun 2014 at 8:33 PM (3 years ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2014-06-17 06:14:42 PM  
Sure. But then again so's murder, so y'all can have at if stringing up a banker or six would be legal. Feelin' lucky?
 
ZAZ [TotalFark]
2014-06-17 06:18:49 PM  
You could start by banning normal humans from playing the market directly, so the thieves are preying on each other. Then you require any investment vehicle in which normal humans can invest be structured as a limited partnership with the fund manager as a general partner. A general partner is liable for debts of the partnership. So some presumably rich guy is facing actual out of pocket losses if he bets wrong on a 100-1 leveraged can't lose bet on the trend in Bolivian cacao futures, or if he gets screwed by some other rich guy who got a tip that Merck had been spiking Viagra with potassium nitrate to increase sales.

And then you give each trader a gun, a knife, and a cyanide pill. And build a wall around Manhattan.
 
2014-06-17 06:34:18 PM  
How do you have a crime when there is no victim?

Make prostitution, drug use, selling booze on Sundays illegal?
 
2014-06-17 06:41:57 PM  
We relegalized it for Congress, so why not for us lesser people
 
2014-06-17 06:48:14 PM  
The crux of most insider-trading-as-a-crime arguments is that insider trading creates an uneven playing field and the laws protect the average investor. I disagree.


See?  Reasons!
 
2014-06-17 06:51:40 PM  
Newsflash: High speed trading IS insider trading.
 
2014-06-17 06:58:28 PM  

ZAZ: You could start by banning normal humans from playing the market directly, so the thieves are preying on each other. Then you require any investment vehicle in which normal humans can invest be structured as a limited partnership with the fund manager as a general partner. A general partner is liable for debts of the partnership. So some presumably rich guy is facing actual out of pocket losses if he bets wrong on a 100-1 leveraged can't lose bet on the trend in Bolivian cacao futures, or if he gets screwed by some other rich guy who got a tip that Merck had been spiking Viagra with potassium nitrate to increase sales.

And then you give each trader a gun, a knife, and a cyanide pill. And build a wall around Manhattan.


The new Chairman of the Fed...
i1079.photobucket.com
 
2014-06-17 07:07:11 PM  
Someone should use their information to rip Carol off.  I'm sure she'll be fine with that.

She her plenty of stock that you know will tank tomorrow.  She'll be overjoyed.
 
2014-06-17 07:08:16 PM  

ArkAngel: We relegalized it for Congress, so why not for us lesser people


This.
 
2014-06-17 07:10:58 PM  

I_Am_Weasel: Someone should use their information to rip Carol off.  I'm sure she'll be fine with that.

She her plenty of stock that you know will tank tomorrow.  She'll be overjoyed.


"She her"?

Do you ever read what you type, weasel?

"SELL her"
 
2014-06-17 07:16:30 PM  
In fact, the big guys thrive on information asymmetry, so eliminating insider trading restrictions would likely be at the expense of those major market players.

So, that would make them victims, right?
This deceitful broad talks out of both sides of her mouth. There's no argument in this article. It's nothing but a long winded whine. One of her buddies must have just been fingered. farking coont.
You know why insider trading will never be legal? Wall Street doesn't make money trading every day because they make good bets. Goldman doesn't rack up "trading profits" quarter after quarter, day after consecutive day because their traders are all so smart, always one step ahead of you. They make trading profits because they make money on volume, on the existence of trades, and if no one trades, the volume will go away and they'll be left to their own devices. They'll suddenly have to start being right. And sometimes they'll win, and sometimes they'll lose, and that would make them cry. They need you, and you'll go away if you think the markets aren't fair.
 
2014-06-17 07:30:29 PM  
It seems that something like that would be hard to prove unless there's a recorded phone call or email records, which would be hard to get a warrant for. But then I've been thrown out of casinos for counting cards and they didn't require burden of proof for that either.
 
2014-06-17 08:42:27 PM  
Pelosi and Feinstein made sure to make it legal for them once again.
 
2014-06-17 08:47:00 PM  
Oh, look. A rich sociopath wants something, and has worked out a tortuous rationalization that says they should have it.
 
2014-06-17 08:47:46 PM  

Mugato: How do you have a crime when there is no victim?

Make prostitution, drug use, selling booze on Sundays illegal?


I stopped reading when he suggested that insider trading had no victims.

Sure, the dude that sold you their stocks didn't lose any money.
 
2014-06-17 08:52:25 PM  

jso2897: Oh, look. A rich sociopath wants something, and has worked out a tortuous rationalization that says they should have it.


they are going to get it anyway, why should we bother to stop them. it's their world, their rules.
 
2014-06-17 09:11:04 PM  

spawn73: I stopped reading when he suggested that insider trading had no victims.


I dunno, most business practices have some victims and people with unfair advantages. I don't really know anything about insider trading or trading in general so I don't have an opinion but the guy who wrote this article sounds a little argumentative and defensive.
 
2014-06-17 09:11:23 PM  

spawn73: Mugato: How do you have a crime when there is no victim?

Make prostitution, drug use, selling booze on Sundays illegal?

I stopped reading when he suggested that insider trading had no victims.

Sure, the dude that sold you their stocks didn't lose any money.


Thats exactly when I stopped as well.  What does the author think, that the profits from insider trading just suddenly materialized from nowhere?

I have a better idea, lets make it a capital offense and start shooting people.
 
2014-06-17 09:25:27 PM  

I_Am_Weasel: I_Am_Weasel: Someone should use their information to rip Carol off.  I'm sure she'll be fine with that.

She her plenty of stock that you know will tank tomorrow.  She'll be overjoyed.

"She her"?

Do you ever read what you type, weasel?

"SELL her"


Sometimes I really really enjoy you.
 
2014-06-17 09:27:04 PM  

spawn73: Mugato: How do you have a crime when there is no victim?

Make prostitution, drug use, selling booze on Sundays illegal?

I stopped reading when he suggested that insider trading had no victims.


That's when I knew the article had to be a troll article.
 
2014-06-17 09:33:30 PM  
They're going to inside trade no matter what we do, so we may as well show them how so they can do it safely. The Teen Sex approach.
 
2014-06-17 09:53:55 PM  
So long as someone doesn't get hurt, everything is totally cool? Sounds like a ringing endorsement for The Pirate Bay.
 
2014-06-17 10:25:54 PM  
I would be absolutely fine with this if they took the ability for recourse away also, someone steals your money?  To bad. That way the trust in the system would be broken.
Good luck getting investors now.
 
2014-06-17 10:27:07 PM  

FutureWars: So long as someone doesn't get hurt, everything is totally cool? Sounds like a ringing endorsement for The Pirate Bay.


Insider trading helps the economy, so it is totally cool. I don't really know how it does that, but it does. Just money everywhere, flowing and moving and stimulating the economy. We need to encourage this
 
2014-06-17 10:36:52 PM  

ginandbacon: I_Am_Weasel: I_Am_Weasel: Someone should use their information to rip Carol off.  I'm sure she'll be fine with that.

She her plenty of stock that you know will tank tomorrow.  She'll be overjoyed.

"She her"?

Do you ever read what you type, weasel?

"SELL her"

Sometimes I really really enjoy you.


I was all set to defend the weasel and then I was like wait what am I reading
 
2014-06-17 10:42:41 PM  
i.imgur.com
 
2014-06-17 11:03:11 PM  
Shows how low we've sunken as a society. In their day, the Duke Brothers were monsters. Today, they're amateurs.

www.standbyformindcontrol.com
 
2014-06-17 11:06:14 PM  
one ringy dingy
 
2014-06-17 11:16:01 PM  
 
2014-06-17 11:16:16 PM  
The market is broken and the SEC is a joke anyway. I say why not.
 
2014-06-17 11:28:06 PM  

b2theory: ArkAngel: We relegalized it for Congress, so why not for us lesser people

This.


Oh, that's adorable. You guys think it'll be legalized to benefit us plebs!
 
2014-06-17 11:36:27 PM  

Aar1012: b2theory: ArkAngel: We relegalized it for Congress, so why not for us lesser people

This.

Oh, that's adorable. You guys think it'll be legalized to benefit us plebs!


No, just amazed that it is legal for elected officials
 
2014-06-17 11:39:14 PM  
Some trust fund prosecutor, got off-message at Yale, thinks he's gonna run this up the flagpole, make a name for himself, maybe get elected some two-bit, congressman from nowhere, with the result that Russia or China can suddenly start having, at our expense, all the advantages we enjoy here. No, I tell you. No, sir! Corruption charges! Corruption?!! Corruption is government intrusion into market efficiencies in the form of regulations. That's Milton Friedman. He got a goddamn Nobel Prize. We have laws against it precisely so we can get away with it. Corruption is our protection. Corruption keeps us safe and warm. Corruption is why you and I are prancing around in here instead of fighting over scraps of meat out in the streets. Corruption is why we win.
 
2014-06-18 12:00:11 AM  
The comments on the actual site are funny.  Defending her.
 
2014-06-18 01:36:50 AM  
Oh, but think of all the jobs this would create! Somehow! We're sure of it!

If they did get insider trading legalized, how long until they had another, separate market setup, that dealt in insider trading information? Somewhere where people could go and buy insider information on, say, HP's upcoming quarterly earnings, and then buy/sell HP stock accordingly.

Would even take them a year?
 
2014-06-18 02:55:28 AM  

ZAZ: And then you give each trader a gun, a knife, and a cyanide pill. And build a wall around Manhattan.


That's the only part of your post I understood.
 
2014-06-18 03:57:30 AM  
Yeah we know it's all just a game

But we want a level playing field


i58.tinypic.com
 
2014-06-18 06:26:11 AM  
Insider trading is easy.
HIDING it is easy.
Finding it and proving it, that's hard.
 
2014-06-18 06:44:41 AM  

spawn73: Mugato: How do you have a crime when there is no victim?

Make prostitution, drug use, selling booze on Sundays illegal?

I stopped reading when he suggested that insider trading had no victims.

Sure, the dude that sold you their stocks didn't lose any money.


You think that "the dude that sold you their stocks" would have held onto his stocks if you hadn't engaged in insider trading? Please explain.
 
2014-06-18 07:27:16 AM  

rvesco: spawn73: Mugato: How do you have a crime when there is no victim?

Make prostitution, drug use, selling booze on Sundays illegal?

I stopped reading when he suggested that insider trading had no victims.

Sure, the dude that sold you their stocks didn't lose any money.

You think that "the dude that sold you their stocks" would have held onto his stocks if you hadn't engaged in insider trading? Please explain.


If a stock has a small float, it is not at all certain it would have sold at the spot, unless said insider trader came along.
 
2014-06-18 07:58:59 AM  

spawn73: rvesco: spawn73: Mugato: How do you have a crime when there is no victim?

Make prostitution, drug use, selling booze on Sundays illegal?

I stopped reading when he suggested that insider trading had no victims.

Sure, the dude that sold you their stocks didn't lose any money.

You think that "the dude that sold you their stocks" would have held onto his stocks if you hadn't engaged in insider trading? Please explain.

If a stock has a small float, it is not at all certain it would have sold at the spot, unless said insider trader came along.


Insiders play big. They affect the price, regardless of the float. That's how they usually get caught.
Now, the biatch who wrote the article would claim that the way the price is affected benefits the rube- if I'm selling, and the insider is buying, the price is going up, and I get more than I otherwise would have. Similarly if I'm buying and he's selling. So everyone wins.
But of course she's not looking at what happens if insider trading is legal. If insider trading is legal, companies are free to misinform prior to earnings releases as well. "Hey Jim! Do me a solid and tell that snoop from Bloomberg I'm worried about earnings this quarter." They're free to make me believe earnings will be low, which will make me more likely to sell, and then they turn around and release earnings, and I find I've been farked. Market manipulation will be rampant. In their world, fraud is only a crime when I fool you, not when you fool me. Then you were just clever and deserve all my money.
But I'll leave after a bit of abuse, and their precious market will go away. And then they'll be farked, too. Everyone gets farked, which is why the only people who are possibly for legal insider trading are the criminals already doing it and their shills.
 
2014-06-18 08:03:28 AM  
Repealing Insider Trading laws would simply mean the rest of us can trade just like congress critters can.
Okay, well they technically banned insider trading for congress, but they gutted enforcement, so it means nothing.
 
2014-06-18 08:07:51 AM  
http://politicalticker.blogs.cnn.com/2013/04/12/congress-votes-to-eli m inate-key-requirement-of-insider-trading-law/

Here's a link, even.

Repeal insider trading laws. If insider trading is good enough for Congress, it's good enough for us!

\Only half kidding
 
2014-06-18 09:10:52 AM  

ZAZ: You could start by banning normal humans from playing the market directly


Which would guarantee everyone stays poor forever basically.
 
2014-06-18 09:16:02 AM  

Greywar: spawn73: Mugato: How do you have a crime when there is no victim?

Make prostitution, drug use, selling booze on Sundays illegal?

I stopped reading when he suggested that insider trading had no victims.

Sure, the dude that sold you their stocks didn't lose any money.

Thats exactly when I stopped as well.  What does the author think, that the profits from insider trading just suddenly materialized from nowhere?


You don't really understand how the stock market works at all, do you?

Trading is based on (theoretically) predicted future cash flows. By definition it all materialized from no where.

Insider trading being illegal is a relic from times when people actually kept secrets and you may not find out about story xyz for weeks because there was no tv or internet. Today, insider buying and selling is so monitored that if insider trading were to happen, most of the market would catch on before anything major happened anyway.
 
2014-06-18 09:20:50 AM  

Nemo's Brother: Pelosi, Boehner, Reid, McConnel and Feinstein made sure to make it legal for them once again.


FTFY.  If you're gonna hate on Democrats for this bullshiat (which is legitimate) at least get the power players right.  Of course, I'm sure you'll come down just as hard on Boehner for not stopping this and McConnell for not utilizing his powers to shut this down in his tracks.  I don't know how he could have done it specifically since we all know that a minority party can't block or slow down legislation in the Senate, but I'd think a smart guy like him would have found a way.

Before we get into a ...bbbbutt conversation this is pure greed on both parties sides.  And the asinine contention that they couldn't disclose financial records without redacting them to protect private information is just a fig leaf.
 
2014-06-18 09:28:59 AM  

Bullseyed: Today, insider buying and selling is so monitored that if insider trading were to happen, most of the market would catch on before anything major happened anyway.



Like they caught on to Madoff and Enron?
 
2014-06-18 09:39:16 AM  

pueblonative: Bullseyed: Today, insider buying and selling is so monitored that if insider trading were to happen, most of the market would catch on before anything major happened anyway.


Like they caught on to Madoff and Enron?


Madoff and Enron weren't scamming the Market.  They were scamming their clients.  The whole point of their ponzi schemes was the fact that they couldn't outpace the market but with enough hand-waving they were able to distract their clients from this fact.

Now only someone hopelessly naive would thing that legalizing insider trading is a good thing.  But, much like copyright laws, the regulations regarding insider trading can probably do with some updating to reflect our changing environment.
 
2014-06-18 10:01:17 AM  

mjjt: Yeah we know it's all just a game

But we want a level playing field


[i58.tinypic.com image 460x384]


Its funny how neither side paid money to get into the stadium but are outside watching from over a fence.
 
2014-06-18 10:29:53 AM  
This "legalize drugs because everyone already does it" argument can be applied to so many different things in society.
 
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