Sunday, September 21, 2008
Congress Members Getting Hosed
Bloomberg has a roundup of which members of congress are getting wiped out from the AIG fallout ("a bailout" but I think the fed's line of credit at the libor + 850 basis points is really a forced, if not immediate, liquidation dressed up as a bailout). Anyhow, it looks like Pelosi and Kerry are getting creamed. But they have crap loads of money so they should be just fine. Not that this would ever happen, but I would love to see a requirement that members of congress put all of their assets in index funds as opposed to individual equities. You avoid conflicts of interest and as a bonus, they wouldn't get wiped out if you bet horribly wrong on a stock. Though, it's interesting to see that they didn't liquidate their positions. Given that congressional members typically have a reputation as some of the best traders (it would be an understatement to say they have insider information), this shows how much congress has been cut out of the loop on the government's response to the market meltdown.