George Soros takes 51% short position on 7 million Deutsche Bank shares...

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TIDE-HSV

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Re: George Soros bets 100 million euros on the collapse of Deutsche Bank

I changed the title to reality. What he's done is sell 7 million shares he didn't have, i.e., taken a short position. He's hoping the price falls (already has), so he can buy the shares at a cheaper price and pocket the difference as profit. So, he's not betting on a collapse at all and that doesn't have to happen for him to make money. His position is now 46%, indicating he's bought some shares after the 17% drop and cashed some of his profits already. Of course, if it collapsed, then he would never have to pay back, since the shares would be worthless, which would mean his entire investment would be profit, but that's not what he's betting on, just that the price falls...
 

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Re: George Soros bets 100 million euros on the collapse of Deutsche Bank

I changed the title to reality. What he's done is sell 7 million shares he didn't have, i.e., taken a short position. He's hoping the price falls (already has), so he can buy the shares at a cheaper price and pocket the difference as profit. So, he's not betting on a collapse at all and that doesn't have to happen for him to make money. His position is now 46%, indicating he's bought some shares after the 17% drop and cashed some of his profits already. Of course, if it collapsed, then he would never have to pay back, since the shares would be worthless, which would mean his entire investment would be profit, but that's not what he's betting on, just that the price falls...
He's still rearranging deck chairs on the Titanic..
 

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Re: George Soros bets 100 million euros on the collapse of Deutsche Bank

Who exactly is "he?"
Aren't we speaking of George Soros?

From what I've seen, ''he'' (GS) is making tons of Euros betting on the collapse of EU states. If that indeed happens, and a man of his stature doesn't make stupid bets, the very Euros he's betting on and with won't be worth squat. His wagers will be useless.
 

Displaced Bama Fan

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Re: George Soros bets 100 million euros on the collapse of Deutsche Bank

I changed the title to reality. What he's done is sell 7 million shares he didn't have, i.e., taken a short position. He's hoping the price falls (already has), so he can buy the shares at a cheaper price and pocket the difference as profit. So, he's not betting on a collapse at all and that doesn't have to happen for him to make money. His position is now 46%, indicating he's bought some shares after the 17% drop and cashed some of his profits already. Of course, if it collapsed, then he would never have to pay back, since the shares would be worthless, which would mean his entire investment would be profit, but that's not what he's betting on, just that the price falls...
I was just going with the article title. Thanks for clarifying.
 

Tidewater

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Re: George Soros bets 100 million euros on the collapse of Deutsche Bank

I was just going with the article title. Thanks for clarifying.
That is probably a safe bet. The EU just lost a major cash cow. That will probably put more pressure on France and especially Germany. He'll be able to buy back the shares cheap and pocket the profits.
 

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Re: George Soros bets 100 million euros on the collapse of Deutsche Bank

That is probably a safe bet. The EU just lost a major cash cow. That will probably put more pressure on France and especially Germany. He'll be able to buy back the shares cheap and pocket the profits.
Why would he want to? If Deutsch Bank fails, it would be like both parents of a large family both losing their jobs within the same month. The family's entire financial security goes down the drain.
If/when this happens, you can kiss the EU goodbye.
 

mittman

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Re: George Soros bets 100 million euros on the collapse of Deutsche Bank

Aren't we speaking of George Soros?

From what I've seen, ''he'' (GS) is making tons of Euros betting on the collapse of EU states. If that indeed happens, and a man of his stature doesn't make stupid bets, the very Euros he's betting on and with won't be worth squat. His wagers will be useless.
Why would he want to? If Deutsch Bank fails, it would be like both parents of a large family both losing their jobs within the same month. The family's entire financial security goes down the drain.
If/when this happens, you can kiss the EU goodbye.
Apparently you misunderstand what a short sale is. This is what Soros does for a living. He runs hedge funds. I don't think for a minute Soros is trying to undermine the EU, in fact he is the type that loves that sort of thing. He is just making money betting on a decline.
 

CajunCrimson

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Re: George Soros bets 100 million euros on the collapse of Deutsche Bank

Apparently you misunderstand what a short sale is. This is what Soros does for a living. He runs hedge funds. I don't think for a minute Soros is trying to undermine the EU, in fact he is the type that loves that sort of thing. He is just making money betting on a decline.
Yep...he's just restocking the fridge....so he can keep supporting liberal causes. Nothing illegal....just playing "Trump" on the other side of the aisle. He's actually better at being Trump than Trump is....
 

92tide

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Re: George Soros bets 100 million euros on the collapse of Deutsche Bank

Yep...he's just restocking the fridge....so he can keep supporting liberal causes. Nothing illegal....just playing "Trump" on the other side of the aisle. He's actually better at being Trump than Trump is....
you mean he can actually make money?
 

Tidewater

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Re: George Soros bets 100 million euros on the collapse of Deutsche Bank

Why would he want to? If Deutsch Bank fails, it would be like both parents of a large family both losing their jobs within the same month. The family's entire financial security goes down the drain.
If/when this happens, you can kiss the EU goodbye.
I don't believe he is trying to kill the EU. You are correct, if he borrows Deutsche Bank shares, and sells them, and Deutsche Bank and/or the EU goes under, he will lose a lot. If, however, he borrows Deutsche Bank 50,000 shares, sells them for, say, $100, waits a few weeks, or months, while the value of Deutsche Bank shares drops to say, $50, and he buys the shares back, returns the borrowed shares from the person/bank who loaned them, Soros then pockets $50/share.
Timing is critical.
 

cbi1972

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Re: George Soros bets 100 million euros on the collapse of Deutsche Bank

Aren't we speaking of George Soros?

From what I've seen, ''he'' (GS) is making tons of Euros betting on the collapse of EU states. If that indeed happens, and a man of his stature doesn't make stupid bets, the very Euros he's betting on and with won't be worth squat. His wagers will be useless.
I'd imagine he is also shorting the Euro in the forex markets.
 

TIDE-HSV

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Re: George Soros bets 100 million euros on the collapse of Deutsche Bank

I don't believe he is trying to kill the EU. You are correct, if he borrows Deutsche Bank shares, and sells them, and Deutsche Bank and/or the EU goes under, he will lose a lot. If, however, he borrows Deutsche Bank 50,000 shares, sells them for, say, $100, waits a few weeks, or months, while the value of Deutsche Bank shares drops to say, $50, and he buys the shares back, returns the borrowed shares from the person/bank who loaned them, Soros then pockets $50/share.
Timing is critical.
Correct. He's already pocketed the money from selling the shares he didn't have. Should the banks, or the Euro, collapse, then he makes the max profit possible. But he's not betting that the banks will collapse ( don't think the German government will ever let DB collapse), he's just betting on the shares going down, which they did and have. He has a huge paper profit already and the question is just when he's going to buy the (cheaper) shares to cover his short...
 

Tidewater

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Re: George Soros bets 100 million euros on the collapse of Deutsche Bank

Correct. He's already pocketed the money from selling the shares he didn't have. Should the banks, or the Euro, collapse, then he makes the max profit possible. But he's not betting that the banks will collapse ( don't think the German government will ever let DB collapse), he's just betting on the shares going down, which they did and have. He has a huge paper profit already and the question is just when he's going to buy the (cheaper) shares to cover his short...
Yup. Not sure everyone knows what shorting the market is. It is as legitimate as buying a stock when low and selling it when high (unless you short and then do something to make the market drop, like le Chifre did in the James Bond film, Casino Royale. That is illegitimate and probably illegal.)
 

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