Trade regulations and securities laws are so weird.
It is weird to me that information that one person may know
is illegal information for another person to know. Or rather, for them to know
it and act on it. The idea being that if you know something that other people
don’t—have insider knowledge—and then use it to make money in investments and
the stock market, that isn’t fair to people.
What a weird thing to care about in terms of fairness. This
idea of fairness presupposes that if you know something that other people don’t
and you act on it in a way that benefits you at the expense of others, that is
unfair. Okay, fine, if that’s what you think. Make it a law, even. But what
about the thousands of times that happens in life, all the time, every day?
When interviewing for TFA, I interviewed a ton of former TFA
corps members (well, 3 or 4 I think) and they gave me a ton of tips: don’t say
this, do say that, I said this and it worked out well, someone at the group
interview said this and it was really dumb. This is the stuff that TFA cares
about, this is the insider knowledge. And I am sure that put me ahead of the
competition in many ways. Was that insider trading? I think this happens all
the times with jobs. Hey, I know somebody who works there, let me tell you what
they will want to hear, and you will get the job.
I think I have a personal bone to pick with this, so maybe I
am way off base here and this doesn’t even compare, but other people have tons
of advantages, things that they know that others don’t, things that they
understand that others don’t, things people have told them that others haven’t.
Some of that has been gotten through hard work, but a lot of it is dumb luck
and some form of an unfair advantage.
There aren’t laws about that kind of thing. You don’t have
to sign non-disclosure agreements about daily life stuff, but if there is a
powerpoint for your pharmaceutical company that says “Do not share”, and you
share it, you have obviously crossed some line. Good point. I think if you
promise to keep a line and other people expect you to keep to a line, than you
should. I walk the line.
But those lines so often feel so arbitrary.
For example, going back to finance: everything revolves
around having more information than the next guy, and making better financial
bets and hedges than the next guy because of what you know that they don’t.
That is the basis of the industry. Everyday, you are working hard to find some
edge. So of course it feels somewhat arbitrary when someone says “this
information here? This is okay and you can make decisions based on this
information. Oh, but that information over there? That information is off
limits, and you cannot use it to inform your decisions.” Or course that just
seems nonsensical, and absurdist.
Which makes me say that I don’t really think these SEC rules
are real moral imperatives—it really is what you can get away with. Just
because something is illegal, well that doesn’t have anything to do with right
and wrong, or fairness. We should stop kidding ourselves that it is about
fairness, you can’t make an industry built around getting advantages over other
people play fair. Not that I think we should deregulate or anything,
heeeelllllll to the no. No. But I think we should stop kidding ourselves that
we are writing rules based on some kind of grand morality, and that’s
different.
I think, as a very religious person who is also highly skeptical
at the same time, I am in a place to say that most rules are not based on some
higher grand purpose or virtue. In Mormonism, we always talk about following
the Spirit of the Law rather than the Letter of the Law, and that phrase meant
something once and now it is just a terrible cliché. But I think that the
Spirit of most laws is largely overhyped, and most of the time, there isn’t
really a deeper meaning to what we are doing. And if you can come up with one,
it is largely an ex post facto rationalization for why that law might be required of us, and the
so-called Spirit or real purpose of the law is a fable. And so what? What
really matters more than just following the will of God, even if you must to do
petty and purposeless things (along with hard and trying sacrifices), if that
is what is required of you? The Pharisees weren’t rebuked because they had
tried to figure out how to follow the law of Moses and were doing all these
unnecessary laws that they had decided were necessary, they were rebuked for
judging unrighteous judgment of others and basically for being major pricks
about everything and throwing rocks at people, etc. Please follow the dumb
laws, but please don’t stone each other if you aren’t. Because they are
probably all dumb anyway. In fact, not even that much later, Peter gets a
revelation where he is like, “psych about all that law stuff, eat all the crab
you want.” But, as always, I’m very aware that I could be reading way too much
of myself into this. Right now, I am following a lot of rules because I promised
I would, and those promises are important to me, even if the laws aren’t
really.
That all being said, I don’t know what I would do about SEC
laws regarding trading if I was in charge of the world. I would not be like
“psych about all that law stuff, get secrets and get rich off them.” And I
think that there needs to be rules. But I have no idea how to create the right
incentives to get people to follow rules and do it for the right reasons with
the right consequences for everyone. That is why I couldn’t hack it as a middle
school teacher. So in the meantime, I guess everyone please play nice and fair
with the money, y’all.