The scripture alludes to the present situation in 2 Timothy Chapter 3:
2 Timothy 3:13 But evil men and impostors will proceed from bad to worse, deceiving and being deceived.
2 Timothy 3:14 You, however, continue in the things you have learned and become convinced of, knowing from whom you have learned them;
Scriptures seem out of place when dealing with markets.
There should be no laws regulating insider trading. Trading is what business is all about.
I guess I don’t understand your statement “The Sell to Buy ratio among corporate officials is stunningly high right now (2400 to 1 or something like that)”. The Sell to Buy has to be one to one by definition, doesn’t it?
When a stock moves up 10 percent, you don’t know why,” he added. “We can pretend that everyone has access to the same information, but they don’t.”
You are never going to level the “information” gap—its useless to even try. What does rankle me are gimmicks like High Frequency Trading. These use technology to expliot gaps in the system to get rich.
That being said, Hedge funds are not perfect—they go bust too. Eventually, everything regresses to the mean.
The Wall Street Journal has done some good journalism on the “huge” insider trading case underway at present. The prediction is that it will scare lots of people in the industry, bankrupt and smear many of them, but in the end lead to few prosecutions because the idea of “insider trading” is being so overstretched. Sounds like a good way for the Obama administration to create some new bogeymen on Wall Street, though.