George Soros bets $1.25 BILLION on the US Financial collapse

[Azt]

http://www.trunews.com/investing-magnate-soros-bets-big-on-sp-collapse/

Soros is betting on the U.S DOOM !!! , is he an insider? , he made this bet in August.

The $1.25 billion dollars betted on a 1000-1 odds bet would net Soros

$12.5 TRILLION

That is almost as much as the entire US National Debt of $16 Trillion.

Is he the illuminati puppet that is buying America?

[Prodigal Son]

If the dollar collapses a la the German deutschmark, what would 12.5 trillion of them be worth, anyway?

My other question is, what genius would give 1000-1 odds that the dollar WILL NOT collapse?

[Azt]

Regarding Q1- Who said he will receive his profit in US$ , probably in gold ? ...
Regarding Q2 - Back in August, the U.S economy was kind of recovering somehow so someone might have given 1000-1 odds, I do not know.

[risveglio]

Regarding Q1- Who said he will receive his profit in US$ , probably in gold ? ...
Regarding Q2 - Back in August, the U.S economy was kind of recovering somehow so someone might have given 1000-1 odds, I do not know.

Which really bad economist told you the US economy was recovering? I bet you he is a Nobel prize winner.

[Tesseract]

Couple of things, if i am not mistaken:

Soros is betting that the S&P 500 will drop (that is, the stock market in general) via SPY puts. It is not a bet that the dollar will collapse. In fact, there's an argument that a strengthening dollar would accompany such a market collapse.

He's not going to get a 1000 to 1 payback if he's right, if the market falls by ~10 % then he will about double his money, depending on how the trade is structured. It was not at all a radical bet to make, just a big one. Many people are betting that SPY will fall. He's already losing money on the bet, but his position probably won't expire until December or even next year.

Soros bought over 20 million shares of JC Penney at somewhere north of $15. He could have bought them today at less that $7.5, so he does make mistakes.