Eric Cantor’s financial disclosures reveal that he bets against U.S. Treasury bonds

[Political Junky]

Eric Cantor’s financial disclosures reveal that he bets against U.S. Treasury bonds. | ThinkProgress


[Cantor], the Republican whip in the House of Representatives, bought up to $15,000 in shares of ProShares Trust Ultrashort 20+ Year Treasury ETF last December, according to his 2009 financial disclosure statement. The exchange-traded fund takes a short position in long-dated government bonds. In effect, it is a bet against U.S. government bonds — and perhaps on inflation in the future.
If Cantor truly cares about “America’s prosperity,” one would have to wonder why he is literally betting against its financial future. The Washington Independent’s Annie Lowrey adds that “Cantor is not a very canny investor. The fund is down 31 percent this year.”

 

[Zander]

It is not a bet against the Treasury bond, it is strictly an interest rate play. He expected, like millions of others, that the long rates had bottomed and had no where else to go but up. He was wrong. The long bond rates dropped from 4.75% to as low as 4.15% a few weeks ago.

The "Think Progress" hit piece is misleading to say the least.....yellow journalism at it's worst.

 

[Moonglow]

a little hedge betting?

 

[Wry Catcher]

It is not a bet against the Treasury bond, it is strictly an interest rate play. He expected, like millions of others, that the long rates had bottomed and had no where else to go but up. He was wrong. The long bond rates dropped from 4.75% to as low as 4.15% a few weeks ago.

The "Think Progress" hit piece is misleading to say the least.....yellow journalism at it's worst.

NO! A hit piece, from the media. Yellow journalism indeed. The only surprise for me is that Fox 'News' hasn't posted Cantor's picture and identified him as a Democrat.

 

[bripat9643]

Eric Cantor’s financial disclosures reveal that he bets against U.S. Treasury bonds. | ThinkProgress


[Cantor], the Republican whip in the House of Representatives, bought up to $15,000 in shares of ProShares Trust Ultrashort 20+ Year Treasury ETF last December, according to his 2009 financial disclosure statement. The exchange-traded fund takes a short position in long-dated government bonds. In effect, it is a bet against U.S. government bonds — and perhaps on inflation in the future.
If Cantor truly cares about “America’s prosperity,” one would have to wonder why he is literally betting against its financial future. The Washington Independent’s Annie Lowrey adds that “Cantor is not a very canny investor. The fund is down 31 percent this year.”

Betting against the ability of the federal government to pay its debts is a smart move. Why do you imagine a Congressmen is not allowed to use his judgement to insure his financial well being?

 

[Toro]

Eric Cantor’s financial disclosures reveal that he bets against U.S. Treasury bonds. | ThinkProgress


[Cantor], the Republican whip in the House of Representatives, bought up to $15,000 in shares of ProShares Trust Ultrashort 20+ Year Treasury ETF last December, according to his 2009 financial disclosure statement. The exchange-traded fund takes a short position in long-dated government bonds. In effect, it is a bet against U.S. government bonds — and perhaps on inflation in the future.
If Cantor truly cares about “America’s prosperity,” one would have to wonder why he is literally betting against its financial future. The Washington Independent’s Annie Lowrey adds that “Cantor is not a very canny investor. The fund is down 31 percent this year.”

I know lots of smart people making the same bet.

Of course, they have been wrong also.

 

[Toro]

It is not a bet against the Treasury bond, it is strictly an interest rate play. He expected, like millions of others, that the long rates had bottomed and had no where else to go but up. He was wrong. The long bond rates dropped from 4.75% to as low as 4.15% a few weeks ago.

The "Think Progress" hit piece is misleading to say the least.....yellow journalism at it's worst.

It is a bet against Treasury bonds. When interest rates rise, the price of bonds fall, and vice-versa. Betting that interest rates will fall - as you correctly predicted - is a bet that prices of Treasury bonds will rise.

I'm with Cantor on this one. However, the problem is that when I see surveys on the direction of T bond prices, routinely, 90% of investors or more are bearish, meaning they think rates will rise. Usually, when a bet is that lop-sided, it tends to be wrong. I hate being on the same side of the boat as everyone else when it is so lopsided.

 

[American Cowboy]

Obama is crashing the dollar with the help of George Soros. The fix is in. I am going to gold and foreign investments. Only a fool would be betting on the dollar while Commie Obammie is in office. The failed stimulus was just step one to destroy the dollar. Obama is evil.

 

[Liberty]

this is journalism? Holy shit.

 

[The Rabbi]

And who said Eric Cantor wasn't smart?

 

[rckirby]

the link is 'think progress'.............comical comments were calling for him to be jailed.........its just too delicious with irony.

 

[whitehall]

You gotta shake your head at the incredible myopia on the left. Barney Frank ran the House Banking Committee when Fannie went under and he told America that Fannie was fine. Frank said he had "idological blinders" on when he failed to do anything when Fannie went under bringing financial disaster to the Country. The left ignores it but now the desperate left tries to create a fake conspiracy about Congressman Cantor's (legal) purchase of 15,000 of something called ProShares? Are you pitiful lefties going nuts or is it dirty tricks as usual?