12 Days Before ’08 Crash, Congress was Secretly Told to Sell Off Their Stocks

12-Days-Before-08-Crash-Many-in-Congress-Pulled-their-Money-Out-of-the-Stock-MarketBy John Vibes

Earlier this month, it was reported that less than two weeks before the economic collapse of 2008, several members of Congress took their money out of the stock market. Many high-ranking government employees were given a heads-up about the impending market crash in secret meetings with the Federal Reserve and the Treasury Department. Then they used that information to engage in insider trading.

It was revealed that Senator Shelley Capito and her husband sold $350,000 worth of Citigroup stock at $83 per share, just one day before the stock dropped to $64 per share. Another shady trader was Congressman Jim Moran, who had his biggest trading day of the year days after the secret meeting, sellings stock in nearly 100 different companies.

These actions would be illegal for any American in any other circumstance, but members of Congress and high-ranking government officials are actually exempt from insider trading laws.

Years later, a 60 Minutes investigation aired on television which highlighted the government’s deep history of insider trading. The investigation sparked outrage, prompting Congress to pass “the STOCK Act” which was said to hold members of the government to the same standards as any American when it came to insider trading.

However, Congress watered down the bill and changed key elements that would hold them accountable, allowing them to return to business as usual, and escape any consequences for their prior crimes.

In an interview during the 60 Minutes investigation, Peter Schweizer of the Hoover Institute told Steve Kroft that “It’s really the way the rules have been defined. And the people who make the rules are the political class in Washington and they’ve conveniently written them in such a way that they don’t apply to themselves.”

“These meetings were so sensitive– that they would actually confiscate cell phones and Blackberries going into those meetings. What we know is that those meetings were held one day and literally the next day Congressman Bachus would engage in buying stock options based on apocalyptic briefings he had the day before from the Fed chairman and treasury secretary. I mean, talk about a stock tip,” he added.

Since it was passed, the STOCK Act has been more or less worthless. Whenever a politician is accused of anything, they are defended by other politicians and the investigation is immediately stonewalled. For example, a former staffer for the House Ways and Means Committee, Brian Stutter was guilty of insider trading. However, he avoided charges because House Speaker John Boehner refused to hand over the evidence, and claimed that Sutter had legal immunity.

It seems that America operates on two different sets of laws – one set for those who claim to rule us, and another for everyone else.

John Vibes is an author, researcher and investigative journalist who takes a special interest in the counter-culture and the drug war. In addition to his writing and activist work, he organizes a number of large events including the Free Your Mind Conference, which features top caliber speakers and whistle-blowers from all over the world. You can contact him and stay connected to his work at his Facebook page. You can find his 65 chapter Book entitled “Alchemy of the Timeless Renaissance” at bookpatch.com.

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22 Comments on "12 Days Before ’08 Crash, Congress was Secretly Told to Sell Off Their Stocks"

  1. so what! This is not a revelation since it has been occurring for many decades. That is the system! If you don’t like it, leave it or DO NOT support it. If you were Congress, what would you do? If you had a chance to make millions like those around you, what would you do? I can tell you that 95% or more would profit from their situation. That’s life and most people do profit when they see the chance to do so.

    Do you really believe its better to be poor and ignorant? To ignore an opportunity to provide more for your family?

    So abandon the system since it does not serve you. You have been told time and time again that YOU have the power….and you do. Here’s the list. Make your choice….what are you gonna do?

    Stop banking at the big banks
    Stop shopping at the big name companies
    Stop buying junk that you really don’t need
    Stop voting
    Stop listening to the major media propaganda
    Stop paying taxes you don’t owe
    Stop volunteering to be a slave
    Stop accepting the war, murder and theft in other countries (we have been bombing the crap out of the Mideast and African countries for two decades now….why is that? This war mongering tells it all about who our master is.)

    Buy local/regional
    Start community support groups
    Start gardening or farming
    Start your own business
    Seek privacy
    Seek education
    Seek those that believe in what you believe in

    As soon as you turn your back on big business, and government (which is really one in the same), then life will be better….much better

  2. exactly! your tax payments allow the criminal cabal to continue.

  3. hey I have a great solution…., let’s reelect the same people that allowed this to happen and took advantage of it!!!!

  4. hey, if you don’t like it, leave!

  5. The Deep State probably doesn’t care which Mafia boss you vote for.

  6. “It seems that America operates on two different sets of laws”
    No. There are more than two. The rules for cops. The rules for the rich. The rules for the military. The rules for the prez. The rules for illegall aliens. The rules for convicts. That’s eight so far……

  7. What ever happened to the INSIDER TRADING LAWS that govern JOHN Q . PUBLIC CITIZEN ?????
    Don’t these also exist for Congress or is Congress above the LALW . ??????????????????????
    The usual answer is they are above the LAW . /////////////////////////////////////////

  8. In this banana republic we have …..NOTHING surprises me….THEY are above the laws we have to abide by….With ALL the scandals we have in government right now ….NO ONE will go to jail….if they do they will be pardoned by barry and his pardon pen….

  9. I wonder what advice they’re getting now?

  10. Had enough yet?

  11. The article gives false information — the stock prices quoted never existed. MATERIAL non-public information was not something the insiders had access to.

    GENERAL information, they did.

  12. Its time the American people rounded them up and put them all in prison for life and truly fundamentally change this country where ALL Laws are enforced and ALL people are held accountable!
    They ruined millions of peoples lives while saving their own asses as usual. Corrupted pigs!
    And no I am not anti government, I am an anti corruptionist! Equality for all! NO ONE is above the laws, meaning if you have a law all must be subjected to the same punishments that anyone else would be subjected to.
    Had enough yet?

  13. “Throw Them All Out: How Politicians and Their Friends Get Rich Off Insider Stock Tips, Land Deals, and Cronyism That Would Send the Rest of Us to Prison” – book by Peter Schweizer

  14. Nothing you said proves your point.

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