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Since open speculation can not be considered manipulation under the legal framework today I suppose you ask about the Bank's role in the problems created for it

by Y-bar 4y ago

Since open speculation can not be considered manipulation under the legal framework today I suppose you ask about the Bank's role in the problems created for itself. So... Isn't the entire point of Bank of England and other central banks to manipulate the market, so why would they be prosecuted?

t0mas88 4y ago
What would put him at risk in todays legal climate is his own choice to short sell the GBO, but the coordination with others to make transactions that would cause it to drop. Then you're not making investment decisions based on your belief that the value of the GBP would decrease, but you're asking others to make specific transactions with the purpose of changing the GBP exchange rate so you could benefit from it.
- Y-bar 4y ago
  By "him" I suppose you mean the head of BoE, because nobody other than BoE themselves did this.
  - t0mas88 4y ago
    I'm not appointing any responsibility to either side nor am I qualified to do so. I'm just sharing the viewpoint that Soros apparently convinced other investors in private to make certain transactions that affect his own (public and legal) trade, and that that part of his move carries a risk of being labeled market manipulation.
    - Y-bar 4y ago
      I don't understand your argument here at all unfortunately. Why would private citizens' investment advice be illegal? The entire Reddit community WallStreetBets (not claiming they have sound investment advice, because they don't) should be in jail then, because they effectively say "please invest like we do, because we will both profit". There is lots of investments based not on the belief of somethings intrinsic value, but on the belief on other investors belief of somethings value. In fact, I would say that the majority of trades happen due to "making investment decisions based on your belief that the value [of X would Y]" as you say. So trades at discrepancies on value beliefs. If this is a good thing or not is debatable, but it is the reality and how would that be related to market manipulation. I get the distinct feeling that you are trying to say something between the lines but it is hard to know. Can you elaborate on your points?
hajile 4y ago
Was it open speculation though? Rich people and politicians get insider trading information all the time. It may be hard to prove (or effectively impossible to investigate in the case of US politicians due to Obama), but such speculations usually don't fall out of the sky.
- biorach 4y ago
  Yes, it was very much open speculation. It was widely believed at the time that Sterling had been pegged at an unsustainably high value. Based on this belief Soros and the other speculators put large amounts of money on Sterling depreciating, which happened and they earned massive profits. There was no "insider information".

by Y-bar 4y ago

t0mas88 4y ago

What would put him at risk in todays legal climate is his own choice to short sell the GBO, but the coordination with others to make transactions that would cause it to drop. Then you're not making investment decisions based on your belief that the value of the GBP would decrease, but you're asking others to make specific transactions with the purpose of changing the GBP exchange rate so you could benefit from it.

Y-bar 4y ago
By "him" I suppose you mean the head of BoE, because nobody other than BoE themselves did this.
- t0mas88 4y ago
  I'm not appointing any responsibility to either side nor am I qualified to do so. I'm just sharing the viewpoint that Soros apparently convinced other investors in private to make certain transactions that affect his own (public and legal) trade, and that that part of his move carries a risk of being labeled market manipulation.
  - Y-bar 4y ago
    I don't understand your argument here at all unfortunately. Why would private citizens' investment advice be illegal? The entire Reddit community WallStreetBets (not claiming they have sound investment advice, because they don't) should be in jail then, because they effectively say "please invest like we do, because we will both profit". There is lots of investments based not on the belief of somethings intrinsic value, but on the belief on other investors belief of somethings value. In fact, I would say that the majority of trades happen due to "making investment decisions based on your belief that the value [of X would Y]" as you say. So trades at discrepancies on value beliefs. If this is a good thing or not is debatable, but it is the reality and how would that be related to market manipulation. I get the distinct feeling that you are trying to say something between the lines but it is hard to know. Can you elaborate on your points?

hajile 4y ago

Was it open speculation though? Rich people and politicians get insider trading information all the time. It may be hard to prove (or effectively impossible to investigate in the case of US politicians due to Obama), but such speculations usually don't fall out of the sky.

biorach 4y ago
Yes, it was very much open speculation. It was widely believed at the time that Sterling had been pegged at an unsustainably high value. Based on this belief Soros and the other speculators put large amounts of money on Sterling depreciating, which happened and they earned massive profits. There was no "insider information".