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Hugh Hendry: Soros Is A Socialist, The Euro Is Doomed And Everyone's Shorting The Wrong Continent



June 24, 2010 – Comments (4)

Business insider finds one of my favorites Hugh Henry:


"George is someone who we've all aspired to match his brilliance," he begins. "But you have to remember something: the richest people in the planet become socialists."

Hendry thinks that's a bit unfair and hypocritical of Soros to become a socialist now that he's a billionaire.

"Socialism is a great thing for George," he says.

"But I want to bring George down. I want George's reputation. Now, Geroge is now embracing socialism. Socialism is when you build a moat around the castle. I'm spending all of my time trying to decide where I'm going to live because taxes are so high in this country and less of my time trying to figure out how to surpass Soros and his reputation."

Then he says everyone is busy shorting the obvious continent - and ignoring the real place where profits will be.

"Shorting is a precarious business and we'd rather entertain the more certain mode of fixed income and credit but, Europe is the epicenter - the problems are very apparent. But I would say to you - is what are the implications of those problems?"

He answers his own question:

"The implications could be felt more profitably, for a speculator, in Asia. Because asian currencies now have been revalued 20% vis-a-vis the Euro. Wages in Europe are falling and wages in Asia are going up. So the noose is getting tighter and tighter, not in Europe, I would argue, but in Asia."

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4 Comments – Post Your Own

#1) On June 24, 2010 at 10:20 PM, portefeuille (98.37) wrote:

good old hendry!

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#2) On June 24, 2010 at 10:22 PM, portefeuille (98.37) wrote:

quit doing the exact opposite of what I am doing, hehe ...

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#3) On June 25, 2010 at 8:50 AM, russiangambit (28.96) wrote:

>  "But you have to remember something: the richest people in the planet become socialists."

True. But what is sad is that people have to spend most of their lives becoming ultra-rich to understand that money is not everything.  And most people never become rich so they never figure this out , so they spend their lives for nothing, for no purpose, just daily grind. Sadly , it is just human nature, what you have is never enough, and to get more you need money.

Sorry for going of topic, but this is a profound point, much more important than economics.

As for Euro being doomed, I see it going to parity but I don't see it disappearing any time soon. US has been able to paper over enourmous problems for years, why Europe can't. Plus (I know nobody will believe me) but europeans are far more resilient than americans simply because they are used to living on much less and in much less comfort than americans. So, in the age of austerity they'll fare much better,

I can't say anything about situation in Asia because you have to live there to figure out whether it is true or not. I don't paticularly trust reports by westerners about Asia, they rarely understand dynamics there.

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#4) On June 25, 2010 at 1:39 PM, portefeuille (98.37) wrote:

much less comfort than americans

and most do not want the U.S. "comfort" ...

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