Watchwoman on the Wall

Watchwoman on the Wall


Did George Soros Profit from U.S. Credit Downgrade?

posted by Donna Calvin

WRITTEN BY RAVEN CLABOUGH
MONDAY, 15 AUGUST 2011

Many suspect leftist billionaire George Soros (left) of having profited from Standard & Poor’s recent downgrade of the U.S. credit rating. According to ETF Daily News, an “invisible trader” bet nearly $1 billion that the rating would be downgraded. Kenneth Schortgen of the Examiner notes:

While the identity of the “mystery investor” remains unknown, many indicators do point to George Soros as the principal benefactor. First, Soros has been tied to the Obama administration since the 2008 elections. In February of this year in fact, a Soros investment fund profited well on President Obama’s new green energy policies.

Secondly, right about the exact same time as the $1 billion bet took place on the US credit rating downgrade, Soros made public the move to divest his management fund of outside investors, and quietly go private. This move allows him to make trades and investments without being required to notify the SEC under the new Dodd-Frank act passed in Congress last year.

Most notably, Schortgen contends that most other hedge fund managers do not have the “inside contacts with the Treasury Department and Obama administration that Soros does.”

Prior to suspicions that the bettor was George Soros, Bloomberg reported:

The $1 billion trade placed in the bond market Thursday bet that the United States would lose its AAA credit rating — and the trader confident in that could make $10 billion. This means someone with the ability to place an $850 million bet was likely privy to inside information on the debt-ceiling debate. After the morning trade was placed, the bond market saw a flurry of activity. People who were long 30-year Treasuries panicked as they saw the huge short put on in the futures market, and started to unwind their long exposure.

Similarly, ETF Daily News reported:

Someone dropped a bomb on the bond market Thursday — a $1 billion Armageddon trade betting the United States will lose its AAA credit rating. In one moment, an invisible trader placed a single trade that moved the most liquid debt market in the world. The massive trade wasn’t placed in bonds themselves; it was placed in the futures market. The trade was for block trades of 5,370 10-year Treasury futures executed at 124-03 and 3,100 Treasury bond futures executed at 125-01.

Jack Barnes of Money Morning indicates that the “invisible” bettor had inside information on the recent debt limit talks: “I believe what happened in a debt ceiling deal was done in Washington and leaked to a major propriety trader. Everyone knows the debt negotiations in Washington have been an extreme game of brinkmanship between political parties, but now someone knows how that game played out.”

Read More: http://www.thenewamerican.com/economy/markets-mainmenu-45/8597-did-george-soros-profit-from-us-credit-downgrade



Advertisement
Comments Post the First Comment »
post a comment

Post a Comment

By submitting these comments, I agree to the beliefnet.com terms of service, rules of conduct and privacy policy (the "agreements"). I understand and agree that any content I post is licensed to beliefnet.com and may be used by beliefnet.com in accordance with the agreements.



Previous Posts

Texas Man’s Pregnant Wife Never Wanted to Have a Gun in the House – But Now She’s Sure Glad He Insisted
Item #1 of 2 [caption id="attachment_28130" align="aligncenter" width="300"] Guns save more lives protecting the innocent and victims of crime than any mainstream news outlet has ever told you about! Thank God that lawful citizens are protected by the 2nd Amendment Right to Bear Arms and defe

posted 10:42:28pm Sep. 13, 2013 | read full post »

Heartwarming! Service dog helps teen with diabetes
Calvin's Commentary: The following story and video is about a young 18-year old teenager, Sadie Jensen, with a debilitating, life-threatening, incurable, life-long illness and a service dog named Bailey. Bailey has been trained to detect and warn Sadie when her blood sugar drops so low she could die

posted 9:57:47pm Sep. 13, 2013 | read full post »

9-11-TRIBUTE-2013 ~ 2 Million Bikers Rally To Washington DC vs Million Muslim Demonstration where 20-25 Showed up for ill-timed "No Fear" Protest
KNOW HOW THE MUSLIMS CAN GET PEOPLE TO STOP FEARING THEM? THEY DON'T NEED TO DEMONSTRATE! JUST QUIT BLOWING UP CHRISTIANS AND OTHER PEOPLE AND BUILDINGS! QUIT BEHEADING NON MUSLIMS! STOP THEIR TERROR TACTICS! STOP MAKING WARS IN THE MIDDLE EAST! STOP SAYING THEY ARE GOING TO WIPE ISRAEL O

posted 10:36:17pm Sep. 12, 2013 | read full post »

Family dog helps alert parents to abusive baby sitter (video)
Good Dog! Snitched on ill-treatment of his beloved family member and sent babysitter to jail! ↓To view video, click large arrow in center below↓ A loyal and protective dog helped alert parents to an abusive baby sitter in South Carolina. According to WCSC, which originally reported t

posted 8:48:41pm Sep. 12, 2013 | read full post »

Sept.11,2013 - 3 Good News Stories #3: Fisherman Reels in Wallet Stolen 3 Years Ago
GOOD NEWS ARTICLE #3 [caption id="attachment_28048" align="aligncenter" width="608"] Stolen Wallet found by Joshua Woods while fishing.  But there's an even stranger twist to this story. Woods wasn't always the person he is today and wonders if he would have returned the wallet if he were the

posted 12:36:17am Sep. 11, 2013 | read full post »




Report as Inappropriate

You are reporting this content because it violates the Terms of Service.

All reported content is logged for investigation.