by John Tamny of Forbes
In the past week reports about alleged “insider trading” on the part of billionaire Galleon Group founder Raj Rajaratnam have been splashed all over the pages of major financial publications. But amid all the overdone hysteria, one question remains unposed: Is any of this actually news?
Never mind that the empowerment of federal bureaucracies to regulate the stock markets is unconstitutional (nowhere does the Constitution grant such a right to the federal government)–the simple truth is that neither the Securities and Exchange Commission, Congress nor the courts have ever really been able to define insider trading. That’s the case because it’s nearly impossible to distinguish between material and non-material information.
