Texas Insider Report: AUSTIN Texas Members of Congress who LOVE to create big-government programs and regulations are always S-H-O-C-K-E-D when people respond to the newly created economic incentives.
The most recent outrage-du-jour focuses on a growing practice known as political intelligence." Big investors such as hedge funds understand that when the Obama administration sneezes everyone else catches a cold. And so the hedgies" want to know when and where Washington will sneezebefore it does.
The Washington Post which editorially encourages big-government efforts has a story about President Obamas former top health policy adviser Elizabeth Fowler meeting multiple times in 2011 and 2012 with executives from half a dozen hedge funds.
Fowler now works forsurprise!pharmaceutical giant Johnson & Johnson. (Hey didnt Obama claim his administration wouldnt be a revolving door for lobbyists?)
The hedgies seek info that could swing the market. Medicare is so large that deciding to pay or not pay for a certain prescription drug or medical device could have a big impact on the manufacturers stock price. And investors would like to know that so they could profit from it.
In the Post article the issue had to do with whether the Obama administration would increase funding for the Medicare Advantage program in which about 25 percent of seniors get their Medicare coverage from private sector health plans. (ObamaCare actually cuts Medicare Advantage funding but the administration has postponed those cuts for mostly political reasons.)
Hedge funds make big bets on the market up or down so a little hint about a forthcoming decision even if inadvertently or innocently dropped by an official could mean big profits.
The Post article provides no evidence that Fowler or other Obama officials did anything wrong and maybe they didnt. But its easy to see why hedge fund execs would want to visit.
Now Rep. Louise Slaughter (D-NY) wants to put a stop to officials meeting with investors even though she votes FOR EVERY big-government program that can make or break private sector companies and industries.
But the best way to reduce the demand for political intelligence and lobbyists is for the government to get out of the business of business. If government micromanagement and whims didnt move markets affecting billions of dollars in an instant no one would care about government officialsand maybe thats exactly the point.
Todays PolicyByte was written by IPI Resident Scholar Dr. Merrill Matthews.
Texas Insider Report: AUSTIN Texas Members of Congress who LOVE to create big-government programs and regulations are always S-H-O-C-K-E-D when people respond to the newly created economic incentives.
The most recent outrage-du-jour focuses on a growing practice known as political intelligence." Big investors such as hedge funds understand that when the Obama administration sneezes everyone else catches a cold. And so the hedgies" want to know when and where Washington will sneezebefore it does.
The Washington Post which editorially encourages big-government efforts has a story about President Obamas former top health policy adviser Elizabeth Fowler meeting multiple times in 2011 and 2012 with executives from half a dozen hedge funds.
Fowler now works forsurprise!pharmaceutical giant Johnson & Johnson. (Hey didnt Obama claim his administration wouldnt be a revolving door for lobbyists?)
The hedgies seek info that could swing the market. Medicare is so large that deciding to pay or not pay for a certain prescription drug or medical device could have a big impact on the manufacturers stock price. And investors would like to know that so they could profit from it.
In the Post article the issue had to do with whether the Obama administration would increase funding for the Medicare Advantage program in which about 25 percent of seniors get their Medicare coverage from private sector health plans. (ObamaCare actually cuts Medicare Advantage funding but the administration has postponed those cuts for mostly political reasons.)
Hedge funds make big bets on the market up or down so a little hint about a forthcoming decision even if inadvertently or innocently dropped by an official could mean big profits.
The Post article provides no evidence that Fowler or other Obama officials did anything wrong and maybe they didnt. But its easy to see why hedge fund execs would want to visit.
Now Rep. Louise Slaughter (D-NY) wants to put a stop to officials meeting with investors even though she votes FOR EVERY big-government program that can make or break private sector companies and industries.
But the best way to reduce the demand for political intelligence and lobbyists is for the government to get out of the business of business. If government micromanagement and whims didnt move markets affecting billions of dollars in an instant no one would care about government officialsand maybe thats exactly the point.
Todays PolicyByte was written by IPI Resident Scholar Dr. Merrill Matthews.
