Registered: Apr 2002
04-13-11 03:00 PM
Quote from Pekelo:
It is a really interesting book, with lots of insider stories. I have just finished the chapter on Soros, playing the Asian crises in '97.
In January they sent their experts to see how the economy is doing, because they suspected that a weakness was brewing. They interviewed a high official at the Bank of Thailand and got confirmation that the government couldn't support the baht for too long. Mind you, this is basicly insider info, because you and me don't get an audience with such officials who reveal such opinion.
So they shorted the baht and eventually made 700 million on it. Then although they did see the same situation in South Korea, they completely missed that trade. Later on although Soros had enough info on the Russian situation, he kept staying long of the rubel and lost 800 million, because he wanted to support the young democracy.
So even though correctly predicting 3 big plays, they still ended up in the red including one missed trade...
Thank you for the info, Pekelo. I'll have to check out the book.
By the way, "insider trading" is only illegal in stocks-- to the best of my knowledge.