He founded the Quantum Fund in the 1970s, with an annual yield of about 142.6% and interest of 33.65 times, which also created most of Soros's wealth (so some people say that Soros's annual salary exceeds the GDP of at least 42 UN Member States). The troubles caused by speculative funds in life are brewing storms and scraping wealth in the financial markets of many countries.
There have been two different voices in the evaluation of financial predators such as Soros. Soros's supporters believe that his financial investment behavior is to "correct market distortions." However, for many ordinary people, Soros is a real opportunist, or a plunderer of greedy wealth, and even reached the point of "talking about color change". In their eyes, Soros and the financial speculators he represents can cause a huge impact, and some weak economies operate through the capital market. And the "stain" in their mouth, Soros's "evil" is about the classic damage caused by fighting:
The first battle: the pound crisis, with a net profit of 654.38+0 billion.
During the period of 1992, the British economy was depressed and it was necessary to implement a low interest rate policy. At the same time, due to the huge deficit, the German government raised the discount rate 1992 in July. However, the British government is limited by the European exchange rate system and must maintain the exchange rate of the pound against the mark. As a result, the fuse of a pound crisis was lit: the high interest rate in Germany caused a wave of selling pounds and snapping up marks in the foreign exchange market.
At this time, the appearance of Soros began to short the mark pound on a large scale, and the price of the pound plummeted. Subsequently, the British government announced that it would raise the interest rate of banks and buy a large amount of pounds at the same time, hoping to attract foreign short-term capital inflows to increase the demand for pounds and stabilize the exchange rate of pounds. However, despite the establishment of the Bank of England, Soros has begun to attack the pound: throwing a lot of pounds and buying a lot of German marks. Although the central bank has bought about 3 billion pounds to reverse the situation, it has failed to stop the pound from falling. Finally, the British government announced that the pound had withdrawn from the European exchange rate system and began to float freely. Soros and his quantum fund got a pound crisis of more than one billion dollars.
World War II: The Thai baht fell, and10 billion yuan was recorded.
1997, Soros set his sights on Southeast Asia, the Thai baht, his breakthrough. In June, Soros ordered the sale of shares in Thai banks and financing companies, which led to this action. Then, the bears represented by Soros began to sell a lot of Thai baht. However, after breaking the Thai baht, Soros concluded that the Thai baht would lead to currency collapse, so he would continue to attack the capital markets of Indonesia, the Philippines, Myanmar and Malaysia.
Finally, Thailand announced that it would abandon the fixed exchange rate mechanism, and the exchange rate of the Thai baht against the US dollar fell by more than 17%. The Indonesian government announced a fixed exchange rate system for the Indonesian rupiah and the US dollar to stabilize the Indonesian rupiah. This move was unanimously opposed by the International Monetary Fund, the United States and Western Europe, and Indonesia fell into a major political and economic crisis. Affected by this, the Singapore dollar, Malaysia, Thai baht and Philippine peso all fell.
The third battle: shorting the yen, making a profit of 654.38+0 billion.
After the financial crisis in 2008, Soros's goal in Japan was the global economic recession. In the past decade, the Japanese government has vigorously promoted national debt, which has snowballed. "Empty yen" became the hottest speculative transaction on Wall Street at that time.
In the summer of 20 12, Japan began to import a large amount of crude oil. Soros's apprentist predicted that the yen would depreciate and actively sought opportunities to make it empty. At the same time, the quantitative easing policy that Shinzo Abe intends to introduce has also given Soros and Benson an opportunity. Its main strategy is to expand leveraged financing through the yen carry trade, and buy a large number of derivative products that bet on the depreciation of the yen and the rise of Japanese stocks. Soros not only increased short positions in yen, but also bought Japanese stocks, accounting for 10% of the company's internal portfolio. Because Soros believes that there is only one way to solve Japan's economic difficulties, that is, currency depreciation, which will lead to another phenomenon, short-term stock market prosperity, which is destined to be an indispensable business. In fact, the Nikkei 225 index rose from 33% of1October 20 1 1 to a low of 86 19 liters, which made Soros have a large Nikkei index.
Let me add one more point here: Soros blitzed Hong Kong and suffered a fiasco.
In mid-July, 1997, shortly after Hong Kong's return to China, Hong Kong dollars were speculatively sold. The exchange rate of the Hong Kong dollar has been falling. Hong Kong's financial market is in chaos. The exchange rate of the Hong Kong dollar peaked for the first time in many years. The Hong Kong Monetary Authority immediately intervened in the market and bought a large amount of Hong Kong dollars in the market to maintain the exchange rate between the Hong Kong dollar and the US dollar. Soros's first exploratory attack failed in the good defensive style of the Hong Kong Monetary Authority.
1997 July 2 1 day, Soros started a new round of attacks. On that day, the three-month Hong Kong dollar interbank offered rate rose directly from 5.575% to 7.06%. Issue government bonds for the Hong Kong government and raise the interest rate of the Hong Kong dollar, thus promoting the exchange rate of the Hong Kong dollar against the US dollar to rise sharply. Finally, with the massive foreign exchange support from Hong Kong and the Mainland, Soros finally withdrew from the Hong Kong dollar speculation market!
So, why is Soros not as famous as Buffett? The biggest difference between financial predators, speculators and Buffett is that Buffett's main basis is value investment. The market belongs to long-term development. Soros is profitable for some short-term financial problems.
Soros is not as famous as Buffett. He is not only like all capitalists, but also "mercenary". All they see is money, no matter whether others are alive or dead. Of course, this is also the same characteristic of capitalists.
Soros is more about these financial sniper battles, which have caused huge losses to these countries from government to enterprises to ordinary families and caused many family tragedies. So the people hurt by these countries, Soros and other Wall Street financial tycoons, are heinous people.
But on the other hand, in fact, there is nothing wrong with Soros's behavior, because some people do a lot of speculation now. For example, real estate speculation, stock speculation, futures speculation, garlic speculation and ginger speculation are all speculative activities. As long as it is not illegal, they can do it, because it is a financial game in itself.
After all, Soros is just a bubble. As long as the bubble continues, there will still be another Soros.