insider trading

The crime of insider trading is a particularly serious one as it drastically reduces the perceived and actual integrity of open markets. Most ideological opponents of such markets claim that insider trading is inevitable and can't ever be eliminated, leading ultimately to profit arising most easily and directly from creating volatility, that is, unexpected shifts in prices due to planned disasters such as war, catastrophic failures of flood prevention systems, assassination and other behaviour that can be easily planned and executed by those in positions of power:

Increasingly, without any accountability at all.

An account of insider trading just before the September 11, 2001 attacks on New York establishes also clear evidence that funding for terrorist acts is easily achieved by simply betting on the predictable chaos that will result from them. This funds the next act.

It seems difficult or impossible to crack down on insider trades for major political events, as some people will always have some advance knowledge or at least reliable trend information about the intentions of those in power to perform such actions.

This is a major critique of open market ideologies.L. Ron Hubbard famously referred to people who engaged in the creation of destruction of capital and lives in order to profit from betting on this, as the Chaos Merchants.

However, despite the serious implications, insider trading laws are not enforced in Canada: very very few people have ever been charged, almost none gone to jail, as a result of trading on inside information.

Even when felons are convicted of this under the tougher US laws administered by the US SEC, they serve very short easy sentences, and Canada is quick to re-admit them to do business and gain publicity for their work. Martha Stewart, for instance, was granted the right to enter Canada to appear at a Windsor, NS fall festival in October 2005, only a few months after leaving jail on an insider trading charge.