savageinfidel

This last few weeks, we've heard a lot about research conducted by Ziobrowski et. al. (see here and here ) on the possibility of informed trading by Senators and Congressmen. Based on abnormal returns earned on their portfolios, it appears that they do use their "inside information" in ways that would be illegal for those not in government service. In case you haven't seen it, here's the 60 Minutes story that brought Ziobrowski's research into the public eye: Now here's another fun fact - Congresscritters not only get to profit from material nonpublic information, they also get to reveal it to select parties too. It seems like a number of hedge funds regularly meet with members of congress to get fast track access to this information. Here's a video from the Wall Street Journal for your viewing pleasure. And here I though our elected officials were pure of heart and above approach (sorry - I think I shouldn't have changed my meds without d...

I might tune into the SOTU (State Of The Union) address tonight. Unfortunately, I have to watch the Unknown Kids (unknown Wife has a girls night out). If I weren't, I might be willing to try one of the following SOTU drinking games: From the Huffington Post From the San Francisco Chronicle From the New York Daily News But, since I have to watch the kids (and I want to have a liver once I'm 60), I guess I'll just have to content myself with SOTU Bingo .

I don't discuss it much on the blog, but those of you who know me know that I'm a bit of a political junkie. So, I've been watching the goings on in the Massachusetts Senate race the last few weeks. I grew up in a neighboring state, and was fed a regular serving of Kennedy media in my younger years. So, to see a Republican senator elected to Ted Kennedy's old seat is nothing short of amazing. By all accounts, Brown did as masterful a job of campaigning as Coakley did a horrendous one. It should make for interesting times the next few weeks as the Democrats decide what to do as far as the Health Care plan is concerned. This may be the death knell for it. Time will tell.

When I read this morning that Obama had been awarded the Nobel Peace Prize, I first thought it was a joke. Then, when I found out that it was real, I realized it was still a joke. Unfortunately, it was one that the prize committee played on themselves. They've definitely beclowned themselves - if I were to guess why they gave it to Obama, I'd have to say "Because he's not Bush"). I know, I know - this isn't a political blog (it's supposed to be about finance, or at least about being a finance professor). But some things cry out for comment. Since it's Friday at 5:00, I guess it's time to call it a day. If the weather holds out, I'm trying a 100 kilometer ride tomorrow. Should be interesting - the course is not as hilly as the last ride. But, it might rain, in which case I'll stay home. update : a reader just informed me that nominations had to be in by February 1st. So that means that Obama was nominated after eleven days in offi...

Yesterday, the Dow dropped approximately 4%, and the S&P500 dropped by a little over 5% on Inauguration day. This was the worst "inauguration market" day in history. So now we'll wait to hear the talking heads either say how there's a correlation (or even a causation) between the two, or explain how there's not. In reality, it was probably more due to State Street Bank's disappointing earnings numbers - their stock plunged almost 60% on the news, and led many other financial stocks down. If markets are efficient (and they are, relatively speaking), Obama's inauguration should already have been priced in.