Is Congress Cheating The Stock Market?

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A new academic study shows that Congressmen who invest in the stock market consistently outperform the market, suggesting that Congressmen are either trading on insider information or using their position to influence laws and regulations to their own personal benefit.
The researchers studied more than 16,000 stock transactions, from 1985 to 2001. What they found is that members of the House earn significantly higher returns on their portfolios, compared to the rest of us.
A portfolio that mimics the House Member stock purchases over that time beats the market by an average of 55 basis points per month — or 6% annually. That's not just a 6% gain. That is 6% above and beyond what the market gets.
That sort of consistent results are not the product of chance or luck or even skill. It is clear that, whether they are purposefully scamming the system or accidentally gaming it, Congressmen are cheating you, me, and other investors out of money. The worst part is, since they write the laws that govern their own behavior, they're very likely doing it legally!
As Raj Rajaratnam awaits sentencing for insider trading, we have proof — clear proof — that Congress is using their position to gather insider knowledge and then use that to trade their own stocks. Who has more access to the secret workings of government and finance? Who has more ability to influence regulations and funnel government money to this company or that particular project.