Last summer, the Wall Street Journal ran a story that revealed Eric Cantor had as much as $15,000 invested in ProShares Trust Ultrashort 20-plus Year Treasury ETF. As the name implies, this mutual fund “aggressively shorts” long-term U.S. Treasury bonds. That means when the U.S. debt load is at its worst, the ProShares EFT produces maximum ROI.
Rep. Cantor’s financial records, which are publicly available via sources like OpenSecrets.org, indicate that he still has as much as $15,000 invested in the ProShares fund. According to government insiders, if the U.S. government is unable to raise the debt ceiling by Aug. 2, the nation will begin to default on its debt payments to creditors. According to Bloomberg, this will also force a government shutdown that will furlough 800,000 federal workers.
“If the debt ceiling isn’t raised, investors would start fleeing U.S. Treasuries,” Matt Koppenheffer of Motley Fool told Salon. “Yields would rise, prices would fall, and the ProShares ETF should do very well. It would spike.”
Eric Cantor, Proud Republicon:
Putting America First. And a dick.