TWO MONTHS after commencing the Whitewater scheme, Hillary Clinton invested $1,000 in cattle futures. Within a few days she has a $5,000 profit. Before bailing out she earns nearly $100,000 on her investment. Many years later, several economists will calculate that the chances of earning such returns legally were one in 250 million.
AGBIZ TILLER - Mrs. Clinton’s ability to turn $1000 into a near $100,000 in ten months of futures trading, a congressional study would learn, coincided with a period of time that a select group of executives from packing houses, grain companies, feedlot operators and commodity brokers reaped tens of millions of dollars in an “insider” trading scheme in the cattle futures market. . . Between February, 1978 and April, 1979 some 32 cattle industry insiders made profits of $110 million by selling cattle futures after they received some 15 “secret signals,” which was followed within an average two and one half day period, by a marked drop in cattle future prices. Then Rep. Neal Smith (Dem.-Iowa), chairman of the House Small Business Committee, which released the report in February, 1981 noted that in all a total of some 1027 individuals made total net profits of approximately $156 million. Thus, three percent of the large traders — those with 50 contracts or more — with correlated trading activity and/or common business affiliations accounted for 70% of the total net profits of this group of traders. Mrs. Clinton traded 50 or more contracts three times . . .
A previous USDA study in 1979, for example, pointed out that during 20 of the 21 months preceding October, 1979 there was not a single day in which a farmer-feeder could have used the futures market to hedge in a profit and only five days in the remaining month that the farmer-feeder could have broken even . . . Meanwhile, the eight largest packers, who at the time were slaughtering 44% of the nation’s beef, held over one-half of the futures contracts and made twice as much money in the futures market as they did in trading cattle . . . In all, between February, 1978 and December, 1980, some 29 “secret signals” were given although Smith’s Committee staff made no estimates on the profits earned after April, 1979 . . . There are estimates that 75% to 95% of individual investors lose money in commodity futures markets.
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