Mystery Investor Set to Make Billions on US Credit Rating Downgrade
By Jerry A. Kane
Last month, a mystery investor or hedge fund bet almost $1billion at 10/1 odds that the United States’ credit rating would fall, and by cracky it did. After Standard and Poor downgraded the country’s credit rating from AAA to AA+ last Friday, some “lucky” investor is now positioned to get 1,000 per cent return on his money, with the expectation that interest rates will rise following the downgrade.
So who made the billion dollar bet? Well, George Soros’ name has been bandied about as a possibility. After all he made more than $1billion on currency speculation during the United Kingdom currency crises in 1992.
He’s also tied at the hip to the Ruler and his Bread and Circuses administration and could have been privy to inside information before placing the billion dollar bet in the futures market.
It was just two years ago when Soros made a move to get dividends from his holdings in Petrobras only days before the Ruler announced $2 billion in loans and guarantees to finance the Brazilian company’s exploration of the Tupi oil field near Rio de Janeiro.
And just recently Soros stopped managing money for outside investors, which means he will receive less scrutiny from the Securities and Exchange Commission.
Although some other billionaire could have made the mystery bet, “the man who broke the Bank of England” is the odds-on favorite because he was better positioned to know that a downgrade was in the cards.
“The rich man is always sold to the institution which makes him rich. Absolutely speaking, the more money, the less virtue.”—Henry David Thoreau
For more on the story, see Who made a billion dollars on 10/1 bet that U.S. credit rating would be downgraded?