Scott Bessent: Ban Congressmen from Single-Stock Trading

Treasury Secretary Scott Bessent would like a ban on single-stock trading in Congress as would most Americans. As he said, the American people deserve better than politicians with hedge fund returns. We want people who want to serve the people, not themselves.

Single stock trading involves speculating on the price movements of individual stocks. This can be done through various methods, including single-stock ETFs and single-stock futures. Single-stock ETFs allow investors to leverage a single company, potentially earning significantly higher returns, while single-stock futures provide leverage to speculate on individual stocks with less upfront capital. Both methods offer flexibility and the potential for high returns, but they also come with increased risk due to the use of leverage.

The biggest criticisms of elected officials being allowed to trade individual stocks are disaster profiteering, bias in lawmaking, and insider trading.

Congresspeople say the have a right to control their own portfolios. If they feel that way, they should not enter public service. The problem is most leave congress wealthy due to their “brilliant” stock trades, and it’s very suspicious.

The Stock Act was passed in 2012 but then the Senate watered it down. It’s not very effective.

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Tariff impacts on inflation: