Soros "at center of hedge funds plot to cash in on fall of euro"

Discussion in 'Economy' started by Neubarth, Feb 27, 2010.

  1. Neubarth
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    Neubarth At the Ballpark July 30th

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    SOROS "AT CENTER OF HEDGE FUNDS PLOT TO CASH IN ON FALL OF EURO" Quote

    Is 'man who broke the Bank of England' George Soros at centre of hedge funds betting against crisis-hit euro? | Mail Online

    A secretive group of Wall Street hedge fund bosses are said to be behind a plot to cash in on the decline of the euro.

    Representatives of George Soros's investment business were among an all-star line up of Wall Street investors at an 'ideas dinner' at a private townhouse in Manhattan, according to reports.

    A spokesman for Soros Fund Management said the legendary investor did not attend the dinner on February 8, but did not deny that his firm was represented.

    At the dinner, the speculators are said to have argued that the euro is likely to plunge in value to parity with the dollar.
    The single currency has been under enormous pressure because of Greece's debt crisis, plus financial worries in Portugal, Italy, Spain and Ireland.

    But, it has also struggled because hedge funds have been placing huge bets on the currency's decline, which could make the speculators hundreds of millions of pounds.
    The euro traded at $1.51 in December, but has since fallen to $1.34. Details of the secretive dinner emerged days after Mr Soros, chairman of Soros

    Fund Management, warned in a newspaper article that the euro could 'fall apart' even if the European Union can agree a deal to shore up support for stricken Greece.
     
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  2. Neubarth
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    Neubarth At the Ballpark July 30th

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    The way of man is to pretend that it's not coming to an end.
     
  3. Toro
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    Toro Diamond Member

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    I read this article in the WSJ the other day. There's not much to it.

    I've been shorting the euro for over a month, and I certainly don't belong in the same class as that group. If a guy like me - who couldn't even be a waiter to a dinner party like that - can figure it out, its hardly a great secret or plot.

    Simply put, the euro is overvalued, it has serious structural issues, the banking system is no better than America's, and Europe is growing slower than America. So the decline in the euro isn't particularly surprising, even if we are oversold and susceptible to a bounce in the near-term.
     
  4. Baruch Menachem
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    Baruch Menachem '

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    Shows that Soros is not dumb.

    He has made a living off of governments being vain and stupid since he was a teenager hustling tourists on the streets of Budapest.

    The size of his payout is dependent on how foolish the Eurocrats are. It should be substantial.
     
  5. uscitizen
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    uscitizen Senior Member

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    What??? You mean the Euro is not going to take over the dollar?
     
  6. 52ndStreet
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    52ndStreet VIP Member

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    I wouldn't doubt it. Wasn't Soros involved with the devaluation of the pound a few years ago.?
    I have always felt that the Euro was artificially over valued for many years now.
    There is no way this Euro can be valued more than the American Dollar, when many
    of those European countries have 16% and 17% unemployment.
    The situation in Greece and the rest of the pigs countries was bound to happen.
    I hear that there is a lot of corruption and Tax evasion in Greece.!?They may have brought the problem upon themselves.
    Most of the worlds business is done in dollars , because of this global currency instability.
    Give me U.S. dollars for the long term future economic situation.!
     
  7. Neubarth
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    Neubarth At the Ballpark July 30th

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    The entire Global Economy is slowly collapsing. Years ago when I predicted this I said that it would be like a slow motion falling house of cards. That is exactly what is happening. China is not shipping product but has managed to produce some product for their own domestic consumption. They still have two hundred million under or un employed in their mega country. They lie like hell to cover up their ugly reality. The United States has 33 million un or under employed and we are lying like hell to cover up our ugly reality. Europe is falling apart. Other countries that have a very small industrial base can claim that they are growing rapidly. When you go from 1 percent of global factory production to 1.1 percent of global factory production you have a ten percent increase in your factories, but actual economic growth in your country is nil. Countries like Brazil and Argentina are examples of that. Factory growth but an overall stagnant economy is not an economic boom, yet people keep on telling me about the tremendous boom in Brazil and Argentina. Tell that to their dispossessed people.
     
  8. 52ndStreet
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    52ndStreet VIP Member

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    So what we have is a Global Economic time bomb that is ticking. With countries falsely
    inflating their economic performance. The Euro , being overvalued for so many years, the Euro chickens, and Pigs are finally coming home to roost. Americas bailouts will
    some day have to be paid by future generations. What will the future hold? economically for the world.?
     
  9. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    Atlas Shrugged anyone?

    The Chinese have certainly been cooking their economic stats - they claim increasing levels of car ownership without any corresponding increase in oil usage. There must be a lot of soon to be rusting hulks sitting in some government owned warehouses somewhere.

    Between inflation, government debt, unfunded entitlements, and taxpayer bailouts, the wealth accumulated by the entire middle class has pretty much been bled out by our governments in conjunction with Crony bankers and megacorps.
     
  10. geauxtohell
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    geauxtohell Choose your weapon.

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    Oh for fuck's sake. A dollar is worthless if you can't trade it.

    A short is a legitimate business arrangement. No one would give a fuck if Soros calculated wrong and took a bath. He's just constantly ahead of the curve.
     

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