The $7 Billion Trade That Broke Britain

Comments · 285

• HA

  @HamishHodder · 1 year ago · pinned

  Thanks Morning Brew for my daily news briefing - sign up for free here <a href="https://morningbrewdaily.com/hamish">https://morningbrewdaily.com/hamish</a>

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• GE

  @Genetically-Irish · 1 year ago

  Cheers Hamish. If I ever find myself in 1992 I&apos;ll be sure to bet big on that trade.

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• JU

  @juanlarocca5736 · 11 months ago

  My man this happens in Argentina every two years

  109

• JF

  @jfraklin · 1 year ago

  For anyone wondering why an interest rate hike can impact British mortgage holders, most home loans in the UK are fixed but only for 3 or 5 years, so say you got a loan at 3% and then 5 years later now your loan is at 15%, you can see why this is a bad deal.

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• RA

  @rafaspaces · 1 year ago

  But why was the miller drunk? You didn&apos;t explain that part.

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• PL

  @plica06 · 1 year ago

  Soros gets all the props for that trade. No one ever mentions Drukenmiller. At least I had never heard of him.

  384

• NG

  @ngocphan-wg3ch · 1 year ago

  I like to borrow one billion dollars too

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• PC

  @pcprinciple3774 · 1 year ago

  TLDR: politicians made a stupid policy, fund exploits its flaws to make billions

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• BE

  @Benzknees · 1 year ago

  This did us in Britain a huge favour, causing us to exit the ERM (exchange rate mechanism, a precursor to the Euro, which a British politician amusingly labelled as the eternal recessionary mechanism). After that Sterling depreciated massively, giving our exports &amp; economy a huge boost that led to the longest period of uninterrupted growth the UK has ever experienced (until the end of the property bubble in 2007). <br><br>And it has since crippled countries in the Eurozone like Italy. Greece, Spain, Portugal &amp; France, as they struggle with an overly strong currency. And the Euro has been too weak for Germany, causing an imbalance tilted towards exports.

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• KA

  @kaifa_blue · 1 year ago

  This is a very concise and clear explanation. Thanks.

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• GI

  @GingerWildcat · 1 month ago

  Soros didn&apos;t break shit, he bet that it would break. How the fuck could he collapse the currency? He wasn&apos;t the dude printing it. 😂

  4

• FD

  @fdadrtrttewrt · 1 year ago

  Very interesting and unknown to me story. Thats why I subscribe!

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