Majority Leader Cantor Stands to Profit From US Default
Last Sunday, House Majority Leader Eric Cantor (R-VA) walked out of debt ceiling negotiations, citing the Democrats' insistence on tax increases.
What Mr. Cantor should be citing is the fact that he has money invested in the ProShares UltraShort Treasury ETF. This fund bets against the value of US Treasuries, so if, for example, the US were to default on its debt, Treasuries would tank, and Cantor would profit handsomely. Seems hard to believe, right?
Not really. There are no laws whatsoever preventing Congressmen and their staff from buying or selling securities; they can even buy or sell shares in companies with business before their committees, so long as they disclose it, as Cantor did.
On July 7th, some unsigned resolution popped up, suggesting that Mr. Cantor has caused the appearance of a conflict of interest. A "Question of Privilege" resolution, it was.
This is what's called "The appearance of a conflict of interest" in Washington. A person who will benefit financially from US default is in charge of coming to an agreement to prevent such default. He seems to be doing everything he can to prevent such an agreement from occurring. That's not the appearance of a conflict. That's a homeowner, holding an insurance policy, lighting a match and setting his house ablaze.
Here's the resolution. http://www.docstoc.com/docs/84054824/CANTOR%20QUESTION%20OF%20PRIVILEGE
