As my stocks tumble amidst growing uncertainty over whether or not to raise the debt ceiling, I couldn’t help but wonder, how could I profit from those who seem bent on destroying the US economy?
House Democrats are circulating a resolution accusing House Majority Leader Eric Cantor (R-Va.) of having a conflict of interest in the debt ceiling debate, a move that could provide an awkward C-SPAN moment for one of the lead Republicans in the budget negotiations.
The resolution goes after Cantor’s investment in ProShares Trust Ultrashort 20+ Year Treasury ETF, a fund that “takes a short position in long-dated government bonds.”
The fund is essentially a bet against U.S. government bonds. If the debt ceiling is not raised and the United States defaults on its debts, the value of Cantor’s fund would likely increase. (Eric Cantor Hit By Democrats For Potentially Profiting From U.S. Default, Huffington Post, 7/8/2011)
Although interesting, the article goes on to note that “Cantor owns $3,327 in the ProShares trust. His congressional pension in the Thrift Savings Plan, on the other hand, is invested in the G Fund of government bonds and is valued at over $263,000.”
Republican Senator Lindsey Graham told ABC’s Jonathan Karl… he “bets” the debt ceiling will not be raised August 2nd and that the United States will very likely default on its debt. (Lindsey Graham On Odds Of Raising The Debt Ceiling: ‘If I Were A Betting Man, I’d Bet No’, Mediaite, 7/12/2011)