Eric Cantor Hit By Democrats For Potentially Profiting From U.S. Default

[TomCADem]

Source: Huffington Post

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.

The Democratic resolution, obtained by The Huffington Post from a Democratic source on the Hill, argues that Cantor "stands to profit from U.S. treasury default, which thereby raises the appearance of a conflict of interest," and that he "may be sabotaging negotiations for his own personal gain." It's not clear how widely the measure was being circulated, with a House Democratic aide saying they hadn't seen the resolution or heard it being discussed.


Read more: http://www.huffingtonpost.com/2011/07/08/eric-cantor-conflict-interest-debt-limit_n_893354.html

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This also reminds me of how many ultra right wing types have been promoting gold as an investment and how PIMCO and many in the financial industry have been shorting U.S. Treasuries. There are a lot of powerful and rich people who are betting on a default.

[gateley]

1. Why wouldn't it be ruled valid by the parliamentarian? Anybody

here know?

And who should they get to present it? Has to be someone with balls who has gravitas - not a Ron Paul, for example.

Even if this doesn't see the light of day, they should talk about it loud and long -- it's not as though they wouldn't throw that out there if one of the Dems had the same investment.

Hope this has legs!

[TomCADem]

2. Think Glenn Beck Pimping Gold For One Of His Sponsors While Arguing...

...That hyperinflation is around the corner. There are way too many people who have a conflict of interest who stand to benefit from a default. Kantor is just one of many.

[gateley]

3. Beck isn't the House Leader. Cantor is. nt

[TomCADem]

5. Beck Has A Cable News Shows - Think Of Financial Pundit

Pumping a stock that he had a financial interest in. I know that Fox News is not the model of objectivity, but that is borderline fraudulent to have Beck touting gold while being paid to sponsor a gold a trading company.

[Art_from_Ark]

9. Beck is a private citizen

Regardless of his political beliefs, he does not have any real political power, whereas Cantor, as Majority Leader in the House, has enormous clout and can help push through laws that are detrimental to the country as a whole but beneficial to himself.

[No Elephants]

12. Disagree. These TV and radio folk wield plenty of political power.

They have no vote in Congress, but they sure influence those votes.

[Art_from_Ark]

32. Selling gold won't have any measurable impact on the economy

Heck, even the US Mint has been selling gold coins for the past 30+ years.

On the other hand, being in a political position of power, and making what amounts to financial bets against the interests of the general population, is a definite conflict of interest.

[gateley]

27. I agree, but it's still not as crucial as a Congressman, IMO --

The only people who take Beck seriously are his followers, whereas Cantor, because of his position, has built-in clout and can actually influence the outcome of a situation that will affect the entire country.

Plus, I'd just rather see Cantor taken down. I hate the guy. :evilgrin:

[tcaudilllg]

4. This is what we need for the fall. Thanks.

[aquart]

6. Nag his smug ass off.

Profit-before-country Cantor, the Anti-Patriot.

[Scottybeamer70]

7. Short bets..........how interesting.....

anyone remember all the "short betting" just before 9/11?
And, no one was ever pinpointed or named. One does wonder
where all that money went. Money doesn't just suddenly
disappear.....it's in someone's bank account somewhere.

[BumRushDaShow]

22. Exactly! And don't forget Goldman-Sachs

- creating and selling mortgage bundles that were crap (yet mysteriously getting them rated "AAA"), then making major $$$ betting that their own junk would eventually explode (shorting), and finally collecting the insurance taken out on the junk when the house of straw collapsed (funneled through AIG via bailout). :banghead:

[gateley]

28. You think about all that's going on, what "they're" doing, and

if we'd heard this about another country we'd be shocked and outraged. People have no clue as to how truly insignificant we are in their game -- except when they need us for something, like a vote to get one of their own into a position of power.

There's so much I can't keep up with it - I feel suffocated. A real nightmare. :cry:

[global1]

8. It Might Be Worth Keeping An Eye On ProShares & Other Trusts/ETF's Just Like It......

Especially as we near the date of Aug 2nd. If we are seeing a big jump in purchases in these types of funds - then we know how this whole debt ceiling thing is going to play out. We'll know the money men on Wall Street are not going to take the chance and lose - they will cover their potential losses by investing in one of these types of funds as mentioned in the OP.

Kinda like what happened just before 9/11. Somebody made some big money by shorting those airline stocks.

[TomCADem]

10. PIMCO Has Been Shorting US Treasuries Big, But It Was Losing That Bet...

...Because interest rates have dropped. But, if the nation were to default...

[divine_truine]

11. republican voters from virginia! how long are you going to be embarassed by this gashole?

He & boner (& the rest of the corporate-bootlicking koch whores in congress) will wish they were never born. These traitors & their scheme to ruin this country is being exposed as we speak!

O'really, you are truly a pathetic pinhead!

[No Elephants]

13. This sure puts Rangel's failure to report a bit of rent in perspective.

Haul the smarmy turd before the House Ethics Committee, please.

Sure, it's controlled by Republicans now and he's their leader, but maybe this can be dragged out until 2012, and he'll have to run run with it hanging over his head, as Rangel did. Hpefully, America will come to its senses by then and give Democrats control of the House again.

[Harry Callahan]

14. "There are a lot of powerful and rich people who are betting on a default."

Then how do you explain the pressure being exerted by Wall St. to get a deal done?

[atreides1]

19. Rich and powerful

Doesn't mean they're Wall Streeters...those hoping for a default could be just like Cantor...people trying to make a buck off of the US failing.

[The Wizard]

15. The embodiment of anal leakage

Eric Cantor should get a last cigarette and blindfold for treason. Someone needs to be an example of what happens for aiding and abetting the enemy.

[Lordquinton]

16. an awkward C-SPAN moment

Yea, that's probably all it will be for him.

[SpiralHawk]

17. The Republicons need to be called out again and again on their 'Family Values' ethics

The republicons deserve to have the truth of their BS ethics served up front and center.

Republicon proclivities to rank hypocrisy, plundering the tax system to enrich the rich, & their skankulous practice of personally profiteering off the family suffering of millions of citizens of the United States of America, is low.

Damn low.

Damn dirty low.

America deserves honor and integrity.

[ixion]

18. And there are Dems that will profit from the US not defaulting

and so on.

More theater.

[calimary]

39. But forcryingoutloud - doesn't that sound a little treasonous - to make bets that

your country will fail?

This, mind you, from a card-carrying member of the "Country FIRST!" party. :sarcasm:

[Liberalynn]

20. How "Patriotic"

of him.

[TygrBright]

21. Wow. He must really love America. n/t

[fascisthunter]

23. Fucking Traitor!

[alfredo]

24. With all that money he gains from our suffering he can have

the best of care while removing the tar and feathers.

[florida08]

25. sorry excuse for an american

Why is this legal??? For pete sake he's damn congressman able to effect outcomes! Arrest his sorry ass. You can't bet on your team in sports but this is OK?? :argh:

[thecrow]

33. Nor can you sign a living will if you're too close in relationship

to the patient....

[socialist_n_TN]

26. How the hell is this NOT a conflict of interest?

????

[gateley]

29. Again I ask, if anyone knows, why would the parliamentarian

rule this as 'not valid'?

Paging The Magistrate!

[Qutzupalotl]

30. K&R x 1000

Shout it from the rooftops. Heckle him with it in public appearances. Don't let this crook get away with sabotaging our country.

[kag]

31. I almost hate to mention it, but...

Thom Hartmann has been promoting gold for a long time. I don't really understand the economics of all of this, but I know I've heard him selling gold for ITM Trading.

[Nossida]

34. Oh Pleeeze

The Members of Congress from
both Parties are getting Wealthy
by their actions in Congress.

This isn't News,

When will Americans wake up?
Congress serves itself.

[mac56]

35. You don't think this is news?!

You really think they all do exactly this?

Wow.

[Cereal Kyller]

36. Now we know why he's blocking a debt ceiling deal

Probably already has his villa in Tuscany ready for the move.

[Odin2005]

37. Cantor = TRAITOR

[ProgressiveEconomist]

38. This story is like free advertising for the ETF in question. Follow its price at LINK

http://finance.yahoo.com/q/hp?s=tbt to see if thousands of greedy Gordon Gekkos will emulate Rep. Ryan's investment choice. TBT hit a recent intraday high of $35.19 but has been trnding down since.

"You can't know what they know, but you can do what they do."

IMO Ryan's investment in this ETF is INCREDIBLY STUPID and will become fodder for Letterman, Leno, Conan, et. al. next week.

[Kingofalldems]

40. Kick this one

[LetTimmySmoke]

41. Revoke his national security clearence, publicly citing the reason.

Leave it at that.