Billionaire George Soros made a $1.3 billion bet that the stock market will collapse
By Staff Writer
(INTELLIHUB) — This week The Wall Street Journal reported that, Soros Fund Management has doubled up a bet that the S&P 500 is headed for a fall. As many of our readers know George Soros is famous for betting on crashing markets, and more often then not, he wins. Due to this reputation, when Soros makes a bet, people start paying attention.
Just over 2 decades ago Soros made his most famous investment by shorting the British pound and pocketing a billion dollars in the process.
While he is hedging against the stock market, he is still betting on the banks, with news also coming this week that he was buying large stock in Citigroup.
Soros’ book, The New Paradigm for Financial Markets (May 2008), described a “superbubble” that had built up over the past 25 years and was ready to collapse. This was the third in a series of books he has written that have predicted disaster. As he states:
I have a record of crying wolf … I did it first in The Alchemy of Finance (in 1987), then in The Crisis of Global Capitalism (in 1998) and now in this book. So it’s three books predicting disaster. (After) the boy cried wolf three times … the wolf really came.
In February 2009, Soros said the world financial system had effectively disintegrated, adding that there was no prospect of a near-term resolution to the crisis. “We witnessed the collapse of the financial system … It was placed on life support, and it’s still on life support. There’s no sign that we are anywhere near a bottom.”