Analytical Economist reports on Hillary Clinton’s forgotten insider trading scandal:
Like everyone else on the left, Hillary presents herself as an enemy of the financial industry.
I guess when it comes to financial mischief it takes one to know one.
Hillary Clinton has a forgotten financial controversy of her own dating back over two decades ago.
The New York Times reported on March 28th, 1994:
The White House said today that in 1978 Hillary Rodham Clinton invested $1,000 in commodities futures and that the investment grew in 10 months of trading in the notoriously volatile market into a gain of nearly $100,000.
Seeking to dispel suggestions that the trades were risk-free and improperly arranged by an Arkansas lawyer who represents one of the state’s most powerful companies, the White House issued a statement this afternoon that said the First Lady had put up her own money and that she bore all of the financial risks in a marketplace where three out of four investors lose money.
The officials also released a year’s worth of brokerage statements from one of Mrs. Clinton’s two accounts. They show winnings outrunning losses about three-to-one. ‘Too Nerve-Racking’
So, Clinton was able to turn $1,000 into $100,000 in a period of 10 months. To put that into perspective, the compound annual growth rate of the stock market (measured via the Dow Jones) during the 20th century was 5.3% – meaning it would take slightly over 89 years to turn $1,000 into 100,000.
Many of her trades took place at or near the best prices of the day. Only four explanations can account for these remarkable results. Blair [her broker] may have been an exceptionally good trader. Hillary Clinton may have been exceptionally lucky. Blair may have been front-running other orders. Or Blair may have arranged to have a broker fraudulently assign trades to benefit Clinton’s account.
Let’s step back for a second and say that there was no wrongdoing here – that Clinton just got lucky.
Does she really have any right to attack the supposed “culture of short-term speculation” as she often does, considering she’s one of its luckiest beneficiaries?