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Are they stupid? Or well hedged?

House republicans seem to hold "my way or a highway" position on debt limit talks. They are ready to run the country into default if they don't get what they want. "They" include Michelle Bachmann, representative from my district and currently running for US President. US default will have unimaginamble consequences. But first of all, expect huge drop in stock and bond markets. I expect many of those Republicans to have a lot of their money invested in said markets. And here comes the question: are they stupid enough to not understand that their own investments are going to take a hit in case of default? Or maybe at least some of them hedged their legislative agenda by shorting markets or by taking put positions? By the way, such insider trading would not be against the law! Our elected officials can (and do) trade on the information which is only available to Congress insiders.
Of course, markets would be just the first victims of the default. If default is not remedied soon, the hell is going to break loose. US Treasuries is the foundation of the world money system. Imagine the system without foundation. I can't.