Eric Cantor Betting Against T-Bonds? — Old friend Tom Flocco of Upper Providence has noted that Congressman Eric Cantor (R-Va7) who led the walkout in negotiations regarding the raising of the debt ceiling has money invested in a fund that will rise if Treasury Bonds drop as would happen if the debt ceiling is not raised.
It’s a subject being discussed with suspicion at numerous small harbors on the great sea of the world wide web.
The fund is ProShares Trust Ultrashort 20+ Year Treasury ETF. Cantor has $15,000 invested in it as part of a diversified portfolio — which also includes Treasury Bonds.
If one has a halfway-decent money manager one very well might have similar amount of money in that fund or a similar one.
It has been said — by the left-leaning Daily Kos no less — that Cantor sabotaging U.S. Treasury Bonds to benefit his ProShares fund would be like burning down a “million dollar mansion to collect 100 grand in fire insurance.”