Watch out, speculators! George Soros says there’s a Salem-style witch-hunt for anyone profiting off the Greek crisis.
Speculators who might have shorted the Euro in anticipation of a Greek default obviously would hate this morning’s news of a $40 billion Greek bailout (thanks IMF!).
Bailouts are one, but here’s another reason not to short failing economies, or even try to make money right now, courtesy of George Soros and the Financial Times.
“Currency traders find it very difficult right now to speculate because public opinion is very much aroused. If I were running a hedge fund now I would be wary of making money because the political consequences would be too severe,” he told the Financial Times.
“I don’t think that hedge funds are playing much of a role [in the current crisis] – it is not fertile ground. There is a kind of witch-hunt looking for someone who is profiting.”
Soros knows a lot about political backlash. He’s still hearing how evil he is after making the trade of a lifetime a full 20 years ago when he shorted the British pound.
He’s also still a multi-billionaire.
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