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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsEXCLUSIVE: GOP Senate Nominee Shorting U.S. Treasury Bonds, Would Profit From Government Default
This fucking takes the cake...
The Republican nominee in Ohios Senate race stands to reap a significant financial windfall if the government defaults by not raising the debt ceiling, a move he opposed last year and has indicated he would vote against if elected to the Senate.
According to personal financial disclosure documents examined by ThinkProgress, Josh Mandels wife owns an undisclosed amount of ProShares UltraShort 20+ Year Treasury exchange-traded fund (ETF). This ETF aggressively shorts U.S. Treasury bills, meaning that it bets against U.S. debt and spikes when Treasury bill values drop. If a default were to occur, the desirability of Treasury bills would plummet and Mandels ETF would skyrocket in value.
That precise scenario could become more likely if Mandel wins his race against Sen. Sherrod Brown (D-OH). One of the top issues Mandel lists on his website is to Stop increasing the debt ceiling. Similarly, when Congress was embroiled in the debt ceiling fight last year, he stated that he would have voted against the debt deal that narrowly staved off a default.
http://thinkprogress.org/election/2012/07/27/590481/josh-mandel-shorting-treasury-bonds/
According to personal financial disclosure documents examined by ThinkProgress, Josh Mandels wife owns an undisclosed amount of ProShares UltraShort 20+ Year Treasury exchange-traded fund (ETF). This ETF aggressively shorts U.S. Treasury bills, meaning that it bets against U.S. debt and spikes when Treasury bill values drop. If a default were to occur, the desirability of Treasury bills would plummet and Mandels ETF would skyrocket in value.
That precise scenario could become more likely if Mandel wins his race against Sen. Sherrod Brown (D-OH). One of the top issues Mandel lists on his website is to Stop increasing the debt ceiling. Similarly, when Congress was embroiled in the debt ceiling fight last year, he stated that he would have voted against the debt deal that narrowly staved off a default.
http://thinkprogress.org/election/2012/07/27/590481/josh-mandel-shorting-treasury-bonds/
Why are Treasury Bonds allowed to be shorted?
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EXCLUSIVE: GOP Senate Nominee Shorting U.S. Treasury Bonds, Would Profit From Government Default (Original Post)
Oilwellian
Jul 2012
OP
Oilwellian
(12,647 posts)1. Oh, someone else was mentioned as well
Controversy erupted last summer when it was revealed that House Majority Leader Eric Cantor was also betting against long-term U.S. Treasury bonds while opposing efforts to raise the debt ceiling. Mandels ProShares UltraShort 20+ Year Treasury stock is the same one that Cantor owned.
dmr
(28,349 posts)8. Makes me wonder who else is in on this scenario.
To place 'bets' on the demise in our country is anti-American.
Where's old Michele Bachman on this anti-American activity? Oh, yea, right ....
Angry Dragon
(36,693 posts)10. cantor is maybe more interested in his own pocket than in doing his job
Hoyt
(54,770 posts)2. They've gone after ball players who "fixed" games, but probably not this.
banned from Kos
(4,017 posts)3. Anything traded can be shorted. It prevents a bubble for one thing.
When you short you actually sell the item without owning it.
Short = Sell.
Sell Apple at $600 a share then you OWE your broker that Apple stock out of your account.
Hoyt
(54,770 posts)6. But when someone is presumably in a position to influence outcome, it's unethical?
mia
(8,361 posts)4. How to Short U.S. Treasury Bonds
http://www.ehow.com/how_4914529_short-treasury-bonds.html
U.S. Treasury bonds are the most liquid and marketable securities traded in the United States and they vary in price depending on interest rate expectations. Bond professionals who believe interest rates are going higher ( bond prices go lower) see a profit opportunity by borrowing an institution's bond holdings for a fee, and selling the bonds into the marketplace. If interest rates do rise bond professionals buy the same bonds back and return them to the institution. The bond trader keeps the difference in price, the institution makes a fee greater than just holding the bonds. The loser is the party who held the bonds during the price decline. Shorting is just the opposite of buying in expectation of lower yields. The intermediate step of borrowing or hypothecation is merely a technical problem that large portfolio and trading institutions deal with regularly.
Read more: How to Short U.S. Treasury Bonds | eHow.com http://www.ehow.com/how_4914529_short-treasury-bonds.html#ixzz224dQKBcP
U.S. Treasury bonds are the most liquid and marketable securities traded in the United States and they vary in price depending on interest rate expectations. Bond professionals who believe interest rates are going higher ( bond prices go lower) see a profit opportunity by borrowing an institution's bond holdings for a fee, and selling the bonds into the marketplace. If interest rates do rise bond professionals buy the same bonds back and return them to the institution. The bond trader keeps the difference in price, the institution makes a fee greater than just holding the bonds. The loser is the party who held the bonds during the price decline. Shorting is just the opposite of buying in expectation of lower yields. The intermediate step of borrowing or hypothecation is merely a technical problem that large portfolio and trading institutions deal with regularly.
Read more: How to Short U.S. Treasury Bonds | eHow.com http://www.ehow.com/how_4914529_short-treasury-bonds.html#ixzz224dQKBcP
spanone
(135,859 posts)5. none of this corruption surprises me. republicans want to lift regulations.
imagine that
MiniMe
(21,718 posts)7. It is the quickest way repukes can bankrupt social security
Angry Dragon
(36,693 posts)9. These people sound like traitors