Here's Why There's No Way Hedge Funds Will Get In Trouble For Shorting The Euro

Donkey

Hedge funders who supposedly “colluded” to bring down the euro aren’t going to get in any real trouble.

Here’s why (according to the Wall Street Journal and Peter Pope, a former deputy attorney general):

  • authorities would have to prove that the hedge funds privately agreed to drive down an otherwise healthy currency
  • the euro isn’t healthy
  • they would have to find a paper trail
  • these hedge funds aren’t powerful enough to sink an entire currency

Basically, Jim Chanos and our hedge fund friends are right.

On the other hand, John Carney points out…

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