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Welcome back -- Hannity now while the markets came on done in 2008 regulators law enforcement there were busy but Charles Gasparino says in his new book.
But there were investigating the wrong thing and I sat down with him to discuss -- explosive new book.
Circle of friends the massive federal crackdown on insider trading on why the markets always work against the little guy.
Always works against -- I always.
I think the markets kind of rigged against the the small investor I mean if you gonna go in there and you're gonna trade against Steve Cohen.
Of SEC capital against Warren Buffett.
Against that any of these guys you're gonna lose and I think there is a sort of delusional aspect of the -- some business channels presented as we don't have Fox Business that you know you can trade with the big guys you really can't I mean you can invest.
Skewed against long term investors but if you can trade against them they have access to information you'll never have.
Some of that information is called illegally inside information that's what I wrote about -- -- actually name names in this book that was the vetting by the attorneys.
It was heavy.
You know it is -- -- -- that was like a work out but it was worth it in the end because you know.
With and -- -- one thing I pride myself -- is trying to get stuff for right you know you don't want to get -- trying to wanna be fair and you know everybody in this book calls and you know who are these people that you name must go through some of the things that you the people -- you that you talk about the book Steve -- at Citi capital people think that -- -- the greatest investor lists twenty years.
Maybe -- forty years but the last twenty years it's this guy Steve Cohen.
SEC capital huge firm huge fund ideals that every mutual's confirmed returns 30% a year.
Everybody tries to get in his fund the government however I'm not -- this the government is.
Government believes he deals with the dealing inside information.
But I have to make insider trading had nothing to do with the financial crisis point -- on the book that the government failed to bring a single criminal case against the culprits that cause the 2000 presidential crisis.
Actually it wasn't -- government would.
Through the community reinvestment act -- they mostly responsible themselves yes and I read a book about that which I was on your show that -- -- didn't listen I mean yes they were responsible for the bubble that occurred there's no doubt that you.
They promoted housing prices.
That you know they didn't they put -- homes that should have been in homes in that obviously drove up the price housing prices.
But along the way -- was a lot of fraud that wanna they don't need people at major banks while they were imploding.
Was -- world were fine you know we didn't do anything wrong we're going to be here for the next twenty years and you know ten minutes later they're at a business.
That is something that was very hard to -- and by the way.
It when you can't prove something like that the public wanted scalps.
And they went after this what -- they believe was the next listing insider trading which they had on tape once you have something I think it's much easier to prove so what do you tell the average person.
Granted the difference between trading and -- and long term investment I mean.
I I would invest and Johnson & Johnson Procter gamble and gamble McDonnell right but that's about as far as I -- very conservative fits my personality and that's what you should do real state things like that but haven't.
Inherent I would say this the average investor when you turn on a business channel and some -- -- -- -- I might do this do that.
Turn that channel off.
Okay here's any names they write about and I -- -- -- and if you're -- channel -- I'm dances around -- easily controlled that's -- -- -- these -- promising big change that channel.
But remember you can invest for the long term they're very -- -- -- something called index funds their fortune 500 companies they're big companies that reflect the economy.
-- a low risk way and by the way you can diversify into golden bonds -- -- is don't be out of the markets but this is a cautionary tale.
Why the markets themselves if you want to play with the big guys roll the dice.
It's it's skewed against him they have access to information you'll never have -- you follow them.
Another words watch what they're doing a movement or it's too late.
There in and out of stocks so much like you can generally follow some like Warren Buffett you know he -- -- -- -- investment.
Ideas and he has broad support teams but it's it's actually part of the argument -- and those that these -- traders BC that's the culture that we're in right now.
Investing the -- a lot of people profess trading.
The goal against in the big guys were trading against them.
It's never gonna work and this book tells you why aren't great insight circle of friends they're not really your friends there have been telling my friends I think so much --
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