Wednesday 12 June 2013

A remarkable rate that would make even Bernie Madoff blush

There is fairly unambiguous evidence, instead, that insiders make above average returns. One disturbing example is that members of Congress, who often gain access to inside information about a company while they are lobbied and who have some ability to influence the fate of companies through legislation, return a profit on their investments that beats market averages by 5 to 10 percent per year, a remarkable rate that would make even Bernie Madoff blush. 

N. Silver, The Signal and the Noise (2012), 342

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