Martha Stewart went to jail for it, but the Fed practices insider trading with impunity.
by Don Hank
The article below on the global economic crisis explains why our financial system no longer operates on free market principles, and in short, this explains why we are failing. What’s worse, our system is illegal because it tolerates and encourages insider trading, which is defined as follows:
Insider trading occurs when a trade has been influenced by the privileged possession of corporate information that has not yet been made public.
To put this in its proper perspective, Martha Stewart was investigated for insider trading for selling stock when she learned from a friend that stock in his company would lose value because the FDA was going to reject the drug his company was trying to sell. Although the ultimate charge that put her in jail was lying to the FBI, insider trading was the original thrust and was considered illegal. Yet, the government is directly involved with just such insider trading on a vastly wider scale, involving inside info possessed by the Fed in its unsavory relationship with the US government, and is enriched daily by this info in an obvious and illegal conflict of interests.
If Martha Stewart deserved jail, then what does the Fed deserve?
Here is the article:
The Federal Reserve Bank of New York and its powerful Wall Street stakeholders – which are Wall Street’s largest private banks – have inside information on the conduct of U.S. monetary policy. They are therefore in a position to predict outcomes and hedge their bets in highly leveraged operations on the futures and derivatives markets. They are in an obvious conflict of interest because their prior knowledge of particular decisions by the Federal Reserve Board enables them, as private banking institutions, to make multibillion dollar profits.
People have learned to ask politicians crucial questions about their politics. Yet politicians are almost never asked the key questions that decide our and our children’s economic future.
As our nation sinks further and further into the financial abyss, we must make some urgent changes to the demands we make on our public officials.
Will your candidate vote for congressional hearings of the Fed and of the major bankers who committed mortgage fraud, bundling and selling mortgages knowing they were worthless?
Will he or she demand a reduction in our sovereign debt?
It is time to demand accountability. No backbone, no vote.