Politicians Betting Against U.S. Government

Republican Josh Mandel, the former Ohio congressman and State Treasurer who is running against Sen. Sherrod Brown (D-OH) to represent Ohio in the Senate, has positioned himself and his wife financially to reap a significant profit if the U.S. government fails to raise the debt ceiling and defaults on its loans, according to Think Progress. Mandel has campaigned on refusing to raise the debt ceiling, a move which he opposed when it came to a vote last year.

Financial disclosure documents reveal that the would-be Senator’s wife, Ilana Shafran Mandel, owns up to $1,000 of shares in ProShares Ultra-Short 20+ Year Treasury exchange-traded fund (ETF). These funds aggressively “short” U.S. Treasury bonds, which means to bet against U.S. debt…

House Majority Leader Rep. Eric Cantor (R-VA) came under fire last year for similar financial entanglements. It was revealed that the, too, was betting against the U.S. Treasury while publicly agitating against raising the debt ceiling, a position that many consider to be a profound conflict of interest.

http://www.rawstory.com/rs/2012/07/27/ohio-gop-senate-hopeful-shorting-u-s-treasury-bonds-and-betting-on-default/

Profound conflict of interest indeed.

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