Talk about a conflict of interest….
This guy was one of the lead negotiators for the Republicans until he took his toys and went home…
And it seems a just a wee bit unpatriotic to bet against the interests of the U.S.A. And a little stupid, from a PR and political standpoint, for a sitting U.S. Congressman to make this kind of investment. But with the GOP, money trumps everything else….
Another reason Eric Cantor tops the very long and competitive list of Republican slimy jerks.
Economists have said that failing to raise the debt ceiling could be catastrophic for the U.S. economy, but at least one lawmaker stands to gain financially if the country defaults on its debts.
House Majority Leader Eric Cantor’s (R-VA) latest financial disclosure statement indicates that he owns up to $15,000 of ProShares Trust Ultrashort 20+ Year Treasury EFT, a fund that will likely skyrocket as U.S. debt becomes less desirable.
“If the debt ceiling isn’t raised, investors would start fleeing U.S. Treasuries,” Motley Fool’s Matt Koppenheffer told Salon. “Yields would rise, prices would fall, and the Proshares ETF should do very well. It would spike.”
“Cantor’s involvement in the fund and negotiations is not ideal,” he added. “I don’t think someone negotiating the debt ceiling should be invested in this kind of an ultra-short… It looks pretty bad.”
Cantor pulled out of negotiations to raise the debt limit last week saying, “Now is the time for these talks to go into abeyance.”
Since that time, ProShares ETF is up 3.3 percent.
“Cantor’s office claims the investment is simply part of a balanced portfolio,” noted Washington Monthly’s Steve Benen. “It’s hardly a stretch, though, to suggest prominent officials should avoid these kinds of conflicts of interest.”