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

Discussion in 'Politics' started by Political Junky, Jul 2, 2011.

  1. Political Junky
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    Political Junky Gold Member

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    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.”
     
  2. Zander
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    Zander Platinum Member

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    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.
     
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    Last edited: Jul 2, 2011
  3. Moonglow
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    a little hedge betting?
     
  4. Wry Catcher
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    Wry Catcher Platinum Member

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    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.
     
  5. bripat9643
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    bripat9643 Diamond Member

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    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?
     
  6. Toro
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    I know lots of smart people making the same bet.

    Of course, they have been wrong also.
     
  7. Toro
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    Toro Diamond Member

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    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.
     
  8. American Cowboy
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    American Cowboy BANNED

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    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.
     
    Last edited: Jul 2, 2011
  9. Liberty
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    this is journalism? Holy shit.
     
  10. The Rabbi
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    The Rabbi Diamond Member

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    And who said Eric Cantor wasn't smart?
     

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