Soros Places 1.25 Billion dollar bet on stock market collapse

This is about a day old as of this thread. George Soros, the infamous investor and speculator who takes pride in the manipulation of sovereign currencies, and delights in his heavily bearish positions upon them in their declines, has reportedly placed a farily formidable bet against the Standard and Poor's index (S&P) for the immediate future. Aparently this comes in the form of a "Put-option", which would allow him to sell off certain stocks at an agreed upon time for a pre-set rate. Basically Put options are used as hedges against unforseen sell-offs and market plummeting, but in some cases they can be seen as a bet in and of themselves, if the investor feels the chance is strong enough.

History has a story to tell about big calls from Soros and people should be paying attention, says the Baron blog:

“Soros reportedly made $1 billion betting against the British pound in 1992. We heard rumors of Soros making a $1 billion bet against the AUD (a position that has done well if true). We heard when he made $1 billion betting against the yen. Where are the headlines for his $1.25 billion bet against the stock market?” asks Baron.

blogs.marketwatch.com...

www.stockmarkettodayblog.com...

It was a big story earlier in the year when an unknown investor placed a fairly large put against the April market to the tune of a few tens of millions (20-40 if I recall). This obviously places that in the dust. Granted we are talking about Soros here, so anything he does he does with emphasis and the full weight of his capital, but it isn't chump change to anyone.

This comes on the heels of a whole slew of recent "Hindenberg Omens" appearing over the past couple weeks, perhaps 6-8 of them by some counts; historically "Hindenbergs" have not predicted necessary crashes, but they suggest the strong possibility of one in the 40 day period following, and while independently they may have meant nothing, this recent mass cluster of them is very alarming.

We are also seeing rapid growth in treasury note interest rates, which some feel dictate higher interest rates all over the economy, such as in mortgages, in order to remain competitive in their payouts. In fact Treasury note rates on their own could be a lynchpin.

We are seeing great tensions now in Egypt. Granted, it is traditionally an unstable country, but somehow it is also an anchor by North-African and Middle-Eastern standards, and the instability of Egypt and/or Iran will mean a general breakdown in the lot is likely. Also keep in mind that Egypt commands the Suez Canal and Iran the Straights of Hormuz- the only two outlets into and out of the Persian Gulf. If EITHER of those passes becomes unstable or contested, that alone would have market destroying consequences.

Personally, I see some sort of massive panic likely coming for the September-October months, which has traditionally been a danger period for the markets, and which already has a lot of doom-saying attached to it by now. You don't have to be a prophet to see what the cards are leaning towards in this one. We have a fairly formidable confluence of bad trends working against us this time, and the trends which seemed sufficient to crash the markets on the last low period, such as the Southern European Instability are not only still present, they are even more severe.

The markets have made a liar out of many of us recently, and I have to admit I also predicted a large downturn for last fall; the markets are becoming increasingly divorced from the actual everyday economy, and have shown a remarkable ability to resist powerful forces nearly dictating their decline, but I feel like the shell game may actually be up this time.

Monday morning could be real wild when Markets reopen. That wasn't a statement. That was screamed at full volume ...with a bullhorn.

The man who broke the Bank of England, as he's been called....has made a bet with almost the money that Belize (or any of the 14 nations ranked below them) produces for total GDP. I'd say it's very serious, if 100% accurate.

Mr. Soros is a supporter of Obama, some say he was instrumental in his election. He is very much a progressive liberal. Obama, and the others involved in the progressive movement believe in re-distribution of wealth. I vote we re-distribute Mr. Soros's wealth to the people in it's entirety. To put his money where his mouth is, every last penny he has, should be spread out amongst the population. He will then be broke, he will be poor, but we will give him free health care and food stamps. He will get along just fine.

Why exactly do you think we have been at war with half of the globe for better than a decade? Do you believe it to be because terrorism is a real and credible threat as far as statistics are concerned? Do you think it is to liberate all of the poor oppressed people in third world countries that desperately need the US style of democracy?

We have been waging war both clandestine and openly to stall as long as possible the collapse of the American dollar, what some countries would call a world currency only because of their holdings of American bonds. Every country that has tried to move away from the American dollar standard for oil and transitioned to something else, gold, euros or anything else has been summarily invaded, conquered and has had a puppet regime installed.

We are far past speculation on what America is, we have the facts, we have the statistics and what they all point too is our government being one of the most corrupt, totalitarian and violent regimes the world has ever witnessed. The only population of any country ironically that is blind to this undisputable fact, is.... ......................................................Americans. Wake up.

No other country can solve the horrors we have created by letting a rogue, out of control government terrorize the world. The only people that can save our society, our heritage and our integrity, is us. Americans. Inform yourselves.

reply to post by Helious

We have been waging war both clandestine and openly to stall as long as possible the collapse of the American dollar, what some countries would call a world currency only because of there holdings of American bonds. Every country that has tried to move away from the American dollar standard for oil and transitioned to something else, gold, euros or anything else has been summarily invaded, conquered and has had a puppet regime installed.

This is correct. The short-hand of this paragraph is the "Petro-Dollar-Reserve" system. If you understand that concept, then the past 25 years make fullest sense. Case in point is that Sadam's attempt to move to Euro-trading oil led to the prompt and immediate invasion of Iraq. There is absolutely no ambiguity there to me.

reply to post by joeraynor


I believe we have been coming to a total collapse for a very long time (not just the economy but all our ways of doing) and while I don't want to see what the initial chaos will be, I think it needs to happen so we can start anew. The problem is, when we do start anew, can we get it right?

I'm no economist, but anyone with half a brain can see how bad things are. Nor do I really know who the hell George Soros is (I'll research him though). But any man or woman willing to drop that much on a bet should be taken seriously.

Especially when the bet concerns something so serious.

one of the indicators for me about how effed up current trading practices are is how superstitious the whole market and those that participate in it seem to be.

its not about whether or not company ABC is producing fantastic widgets ...
its not about shoring up investments for the long haul...

its about the "big man" making a "big bet"... boogety-boo!

such a complete scam. I hope all of their "made money" gets confiscated. I really do.

reply to post by Lunarian

George Soros is one of the most powerful and wealthiest on Earth. People talk about TPTB and Shadow Governments? That man has their inner boardroom on speed dial ...if a chair doesn't have his name embroidered in gold across the leather, of course.

He's also one of the more ruthless and predatory investor types. Gordon Gecko in Wall Street wouldn't have known what hit him to meet Soros on a market run.

reply to post by tgidkp


The Stock market absolutely is not about measuring a company's production. It isn't about measuring how well the average joe and jane are doing, or how much disposable income people have. It isn't about how much corporations are spending even. It is PERCEIVED value. Perceived value is a function of emotions and expectations. It very much listens to "big men" like Bernanke and Soros- it sits on the edge of its seat even, biting its nails to ribbons anytime anyone like that speaks publicly.

That is how I know that it is events like this, rather than how many units Silicon Valley moves, or how many pears are harvested in California, that determine investor expectations.

time somebody got george the jew for insider trading this is enough to spook the market or maybe thats what him and his buddys want

reply to post by Wrabbit2000


Thanks for the info Wrabbit. This makes this prediction especially horrifying, if a man like that is the one making it. I plan to do some research on him tonight, since you made mention of him breaking the Bank of England.

On another note, if the economy does go bust, what will that mean for the rest of the world? I've read various opinions on this matter, with some saying it will bring down the worlds economy as whole, and other's saying that other nations will escape intact.

Because this sounds like a true SHTF scenario.

Originally posted by Wrabbit2000
reply to post by Lunarian

 

George Soros is one of the most powerful and wealthiest on Earth. People talk about TPTB and Shadow Governments? That man has their inner boardroom on speed dial ...if a chair doesn't have his name embroidered in gold across the leather, of course.

He's also one of the more ruthless and predatory investor types. Gordon Gecko in Wall Street wouldn't have known what hit him to meet Soros on a market run.

Kings have been drug out of their castles and put to the gallows and the Guillotine. History, does not protect the rich and it does not teach nor protect the instigators of injustice because of wealth.

Eventually, numbers rule the day. Those that are in the so called 1% are the ones that will be targeted first when critical mass reaches the population. This fact is the very reason why you can see clearly all of the media outlets protecting those in power. The people at the top of those "news" organizations have as much to lose (Perhaps their head) as those that are undermining our society and country on purpose.

The propaganda, the authoritarian control, the aggression, it's all amped up now and moving at an incredible rate and what that tells me based on nothing else but pure history, something which I study closely is that the temple of power structure is about to implode under the weight of it's own illegitimacy.

People will only stand for so much, history has proved this over and over again ad nauseum and yet, those who have power can not be bothered to take a simple history lesson. Either that or, this is how human society is meant to be. Which one is more likely, I can not say but I will say this........... Tyranny in this country, will come to an end.

reply to post by Helious


That was very well said

I sincerely hope that you are right.

This could simply between a tie in between the Hindenberg Omens, the current danger we are seeing with the bond markets with Treasuries pushing upwards to 3% and the fact when the Federal Reserve meets in September it's quite possible Bernanke is going to announce the beginning of QE tapering. Tapering = Less funny money printing.

I'd hazard a guess that if the FED taper is going to be announced Soros probably knows about it in advance. The first time Ben even mentioned tapering a short while back the markets got hammered and the FED spent weeks trying to walk it back.

reply to post by Helious


I have expressed my thoughts at some length on that subject in a thread a few days ago:

www.abovetopsecret.com...

More or less, I feel that multi-national business dealings serve as a much greater protection to corporations or robber-barons then could ever be afforded to them back when they were known simply as the "aristocracy". Their influence knows no ends, and they have no home turf to speak of. They can hide out for a good long time on any of a thousand anonymous beaches, well out of harm's way, while the world eats itself. If they wanted, people like Soros could hide from any sort of fiscal or legal punishment heading their way for a decade, with their money in 100 jurisdictions. People would slowly forget Soros existed, and he or his money would either pop up again later, or be hidden under the investments of 20-odd firms with the most generic names possible (EuroInvest.LLC, Heavy Comex Limited, etc.)

Nowhere in the article does it mention the words "market collapse". He is merely taking a bearish position, happens every day folks. Gotta love the fear mongering here the past few years, meanwhile everyone else is laughing all the way to the bank.

Soros and Beck are both certain that there is major chaos in the financial sector heading this way soon.

I for one say bring it on, get it over with. Corporate greed broke this country. Maybe we can rebuild our financial system without politicians hands in the corporate cookie jar

reply to post by saintsfan


It is implicit in the way Soros operates.

The articles use the language "betting against the stock market". At the very least, that implies his expectation of strongly negative trends. In the context of this being Soros, he has made bets like that against the British Pound and the Yen just prior to each of them plummeting. "Collapse" means different things to different people, but if you want some newspeak, let's say he is clearly expecting a "double-plus-subpar-market-value behavior strongly in the non-optimal curve region", haha.

reply to post by joeraynor

"Collapse" means different things to different people, but if you want some newspeak, let's say he is clearly expecting a "double-plus-subpar-market-value behavior strongly in the non-optimal curve region", haha.

That's kinda like calling the death of a patient at a hospital a "negative outcome to the statistical norm". Or perhaps calling the fall from a 20 story rooftop an "Unfortunate misadventure with gravitational principles".

I can't help it. That makes my night.