$1 Billion bet in July of US downgrade brings questions of insider information

In late July, a mystery investor or hedge fund made a nearly $1 Billion bet that the US would lose their AAA credit rating, and on August 5th when S&P issued its downrade to AA+, that investor now stands to make a return of 1000%, and leads to serious questions of who the mystery trader is, and did they have insider information well before hand.

In 1992, George Soros nearly destroyed the British Pound, and made a profit of $1 Billion by betting agains the currency. The British government had been propping up the Sterling for some time, and this led to a weakness that Soros was able to exploit when rejection of the Maastricht Treaty led to a massive devaulation of the Pound, and a huge profit for his bet.

That belief, or perhaps knowledge of events is very similar to the bet placed against the American credit rating just two weeks ago.

While the identity of the 'mystery investor' remains unknown, many indicators do point to George Soros as the principal benefactor. First, Soros has been tied to the Obama administration since the 2008 elections. In February of this year in fact, a Soros investment fund profited well on President Obama's new green energy policies. Secondly, right about the exact same time as the $1 Billion bet took place on the US credit rating downgrade, Soros made public the move to divest his management fund of outside investors, and quietly go private. This move allows him to make trades and investments without being required to notify the SEC under the new Dodd-Frank act passed in Congress last year.

Of course, this mystery bet could have been made by any Hedge Fund that followed Soro's course of action, and went private on their own. However, very few people have the inside contacts with the Treasury Department and Obama administration that Soros does, and the historical evidence does point strongly to this bet being one that he has done in the past.While the point here is not necessarily who made the bet on the a US downgrade, but rather, the question is how much was known by the Obama administration and Treasury Department in advance of a downgrade coming? In April of this year, an interview with Secretary Tim Geithner led him to say unequivocally that there is no chance of the US being downgraded, and assuredly, the government has close communication with the ratings agencies through the Treasury and the Fed. This downgrade did not come as a surprise to the government, only the timing of it may have been unwanted.

There is a saying when it comes to theft in America. If you steal $100, you go to jail, but if you steal $1 Billion dollars, you work on Wall Street. The SEC and American justice system has been a process that picks and chooses whom it prosecutes for insider information, and the higher up you are in the banking system, the less likely you are to be investigated, or prosecuted. Since the 2008 credit crisis, small fish such as Bernie Madoff were made public scapegoats, and brought to trial, but larger names such as Angelo Mozillo of Countrywide simply got a slap on the wrist, and a large retirement.

The timing of a massive bet of nearly $1 Billion dollars on the US losing its AAA rating just two weeks before S&P made the call on August 5th is eerily similar to what took place in 1992 on the British Pound. There is no doubt that someone had insider information that a ratings downgrade was coming, and only time will tell if the mystery investor is ever revealed who just made $10 Billion dollars off the investment.

Continue reading on Examiner http://www.examiner.com/finance-examiner-in-national/1-billion-bet-july-of-us-downgrade-brings-questions-of-insider-information#ixzz1UXZAVufW

Warren Buffet owns parts in Moodys. These rating institutes work on behalf of the Oligarchs. Soros for sure has good enough connection within these structures as does many others. Thats why crashing economies is such a very good business, justt as war is as well. Same end result - a hurting civilian population.

Soros is the guy not only responsable for the Pounds demice he also very activly interveined against the Swedish Krona some three decades ago. Same end results Sweden joined the European Union and austerity to the people.