Friday, July 8, 2011

Rep. Eric Cantor Is Short the Treasury Bond Market

Do congressional leaders really believe that the debt negotiations are going to resolve the U.S. deficit problem? Huh.

Think Progress reports:
House Majority Leader Eric Cantor (R-VA) is personally invested in a fund that “aggressively ‘shorts’ long-term U.S. Treasury bonds, meaning that it performs well when U.S. debt is undesirable.” Cantor owns up to $15,000 in the fund, which is called the ProShares Trust Ultrashort 20+ Year Treasury ETF.
TP is playing this up as a conflict of interest since Cantor leads the House GOP’s debt ceiling negotiations. But, my bet is that a debt ceiling plan will pass and that Cantor is really looking long-term and knows that even with some hocu-pocus cuts, the debt of the U.S. is in serious trouble and U.S. bonds will ultimately crash.



  1. I don't believe insider trading should be a crime but it amazes me that members of congress are able to get away with trading on inside information. Congress has repeatedly demonstrated its willingness to pick winners and losers in the market, to erect artificial barriers to entry and to establish taxes and regulations aimed at specific industry groups and sometimes even specific firms and this is all considered business as usual. Meanwhile, a trader acting on some inside information still has to deal with market forces which can act against his supposed "hot tip" at any time and is threatened with jail time should his or her actions be exposed. This is completely baffling.

  2. 15,000 isn't all that much. He could easily believe the opposite will happen and this is just a hedge. Could be why he chose the "aggressive" version.

    My point isn't that this is what he is doing, but rather without seeing the entire portfolio who the heck can tell.

  3. this piece of shit needs to go to jail.

  4. lol. some fool says insider trading should not be a crime. LOL.

    What a fool!

    Insider trading should be illegal no matter who does it.

    Investors have little confidence in markets and some idiot wants investors to have even less confidence in markets by allowing insider trading.

    Guess insiders should be allowed to sell information to the highest bidder.


  5. man... $15,000 in a treasure hedge fund? He's probably got 10x this in US bonds. Any financial advisor or broker would perform due dilgence to hedge against risk. This is about as stupid a crock against someone as I seen.