Soros breaks the pound
Impact
GBP −15% vs DEM; UK exits ERM
What happened
George Soros's Quantum Fund bet $10 billion against sterling. The Bank of England raised rates twice in one day defending the ERM peg. Britain withdrew that evening. Soros made roughly a billion dollars in a single day.
Context
Bloomberg terminals let global traders coordinate the short within minutes. The Bank of England had access to the same information but its response took hours. The speed mismatch was the real story.
Era
03 · Cable TV & Bloomberg Terminal
CNBC launched 1989. Bloomberg terminals hit floors in 1982. Financial commentators could move markets in real-time. The era of the unchecked prediction began.
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