George Soros is the man who once brought down the Bank of England. He sponsors the opposition in various countries around the world. Rumor has it that in 1998 he lost a lot of money by investing in Russian GKOs. Now George Soros predicts Russia's default in 2015 and calls on the world community to provide active financial assistance to Ukraine. He believes that since he once managed to collapse the Bank of England, then he will now be able to influence the world community and sink Russian markets.
How George Soros made $ 1,000,000,000 in one day
In order to understand the scheme, thanks to which Soros made such an impressive trade, you need to know what a “short position” or short is. This is a fall game. A trader sells a financial instrument that he does not actually own, and later, when the price falls to the level he needs, he buys it back, respectively, for a lower price.
A short position allows a trader to make money in a falling market. One day, George Soros literally felt that the British pound was about to fall.
The British government, through interventions, kept the British pound rate at a fairly high level in relation to other European currencies. In fact, the British economy was not in such good condition at the time, as the government wanted to show.
George Soros decided on a risky adventure, and on September 16, 1992, he became short on the British pound. The amount of the deal is fantastic - £ 10,000,000,000.
This day went down in the history of world markets as "Black Wednesday". The British government failed to react in time, and the pound continued its sharp decline until the UK was forced to withdraw from the European monetary system (the EMU existed until 1999 and maintained monetary stability in European countries before the introduction of the euro).
As a result of this sharp drop in the pound rate, Soros earned 1.1 billion on this deal and received the honorary title - "The Man Who Crashed the Bank of England".
George Soros: The Philosophy of a Stock Market Speculator
Despite the fact that George Soros is an ardent supporter of the opposition in the countries of Eastern Europe and Russia, he is still an outstanding person with an amazing flair.
He perceives the market as a kind of animate substance, where behind the laconic quotes there are real living people who can be influenced.
In 2015, the legendary stock speculator will turn 85, but he is still full of strength and energy and is ready to fight for a change in the political regime in Russia. He has a lot of funds for this. In 2010, Soros founded the OpenSocietyFund, where he donated $ 332 million. The activities of this fund are aimed at developing and maintaining democratic institutions in Eastern and Central Europe.
George Soros loves to get involved in risky adventures. And now he actively supports the Ukrainian government and predicts a default for Russia in the near future. As they say - time will tell how right this legendary stock speculator, who once managed to collapse the Bank of England, is.
