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To: steve8714

4 posted on 02/27/2009 8:34:26 AM PST by Lucky9teen (Obama destroying America...it sickens me people still think he is great and r so completely blind)
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To: Lucky9teen; steve8714
Umm, No. And before anyone trots out George Soros (ooops, too late) -

Soros didn't crash the pond sterling (a myth that Soros himself probably helps to spread, but the reality is a lot less dramatic) - the Bank of England was trying to defend the ERM when the position was simply indefensible. It was a game of chickens to see how long and how much the BoE was willing to stay and spend to defend the ERM. Well, in the end Soros won that game and the Sterling broke with ERM and floated. Yeh, Soros made some nice money off the deal but it's not anything close to breaking any national monetary system or national economy.

Same story on Malaysia Ringgit. It was at an artificial untenable position when Soros exploited that. Again, Malaysian politicians made a big deal of western foreigner attacking the value of the Ringgit (mostly for internal Malaysian populist consumption) but the reality was it was going to happen sooner or later.

In both cases, the amount involved - while in the billions, were still tiny when taken in the context of national and global economy scale, even more true today,

And in the end, one can argue both the British and Malaysian economies were better off for it in the long run.

8 posted on 02/27/2009 8:52:16 AM PST by Republican Party Reptile
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