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Soros slams 'instruments of destruction'

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posted on Jun, 12 2009 @ 02:13 PM
The billionaire investor tells a banking conference that credit default swaps should not be traded at all.

CNN Money source link

BEIJING (Reuters) -- Credit default swaps are "instruments of destruction" that should be outlawed, billionaire investor George Soros said on Friday.

Soros said the asymmetry of risk and reward embedded in CDS exerted so much downward pressure on the bonds underlying the contracts that companies and financial institutions could be brought to their knees.

It is about time that a wealthy investor called the CDS market "instruments of destruction". CDS's can be used to bring down companies by betting on their losses. I for one agree with Soros. These shady trading practices should be illegal and those who have used them to bring down companies should be prosecuted for their crimes.

[edit on 12-6-2009 by LeaderOfProgress]

posted on Jun, 12 2009 @ 03:12 PM
The real question is..., who will listen?

We live in a world where most people are getting their information from sources that generally support thr financial scam of CDS and the usurious practice of "fractional reserve lending".

They will use the CDS as an excuse to funnel off more of the fruits of our labor for the benefit of banksters and psychopaths who have set themselves up to be the 'ruling elite'.

posted on Jun, 12 2009 @ 03:17 PM
Very interesting that a man like Soros would be critical of financial manipulations, seeing as "The most high profile of the currency market investors, George Soros, made over US$1 billion profit by short selling sterling." during our Black Wednesday.

I guess this time he must be on the bad end of the stick for a change, tough luck Soros!

posted on Jun, 12 2009 @ 03:25 PM
reply to post by jimminycricket

My guess would be that the ability to profit off of the markets has diminished to a point that now in order to protect his interests he must speak out against things that in the near futures will be looked down upon. He is just making himself look good.

posted on Jun, 12 2009 @ 03:32 PM
reply to post by LeaderOfProgress

I think yours is an interesting guess too, but I'm not sure. I went to read some more about the Black Wednesday.

The Times of Monday, October 26, 1992, quoted Soros as saying: "Our total position by Black Wednesday had to be worth almost $10 billion. We planned to sell more than that. In fact, when Norman Lamont said just before the devaluation that he would borrow nearly $15 billion to defend sterling, we were amused because that was about how much we wanted to sell."

The key word there to me is "amused", and that is a public quote to a major newspaper, so I'm not convinced he really cares about making himself look good.

posted on Jun, 12 2009 @ 05:07 PM
If they are going to take Soros' advice and eliminate the CDS market then why would they not as well eliminate the Short Selling practice. Between the two they are quite responsible for large part the "economic downtern" as they say.

posted on Jun, 12 2009 @ 05:09 PM
You mean it goes against his predictions of a comeback for the economy, when in the real world america is totally bankrupt, and only criminal activity is keeping it afloat.

You mean what is hapening now is going against what he wants and he is trying to cover his arse.

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