Who's betting against US Treasury Bonds?
Source: Washington Independent
Eric Cantor has shares in a company that is betting against the US Treasury Bonds. For the WSJ (Rupert Murdoch’s mouthpiece) to report this, they must be really pissed off. This is the green light for the rest of the media to pick it up.
House Minority Whip Eric Cantor (R-VA) has often expressed concern for how Obama administration policies are supposedly a “grave danger to America’s prosperity.” Now, the Wall Street Journal finds that Cantor actually invests in an exchange-traded fund that “takes a short position in long-dated government bonds” — effectively betting against the U.S. Treasury bonds that the government uses to fund its operations:
Cantor, the Republican whip in the House of Representatives, bought up to $15,000 in shares of ProShares Trust Ultrashort 20+ Year Treasury ETF last December, according to his 2009 financial disclosure statement. The exchange-traded fund takes a short position in long-dated government bonds. In effect, it is a bet against U.S. government bonds — and perhaps on inflation in the future.
This, from a guy that walked out of the budget negotiations last week ... Here we all are trying to keep our lives a float and the guy who has control over the federal budget is betting against the US to be able to pay its bills. They were probably close to a budget when he walked out of the talks, now we know why he left. It is a form a manipulation because he is somewhat able to control the outcome with his vote. I wonder how many other politicians are involved in this?