ela_lawyer
22 Feb 2009
News / Goldman Sachs says it will no longer profit from undermining Polish zloty [29]
Goldman Sachs simply hedged their bets and went short on Polish currency. They correctly predicted the value of the Polish currency would fall, and it did. There is nothing illegal about going short. One can go long or short. Anyone with market saavy and some cash to invest can do the same.
All of these Polish firms (banks and other) could also have purchased short contracts on Polish currency, and they would not be in the mess they are in today, at this point in time of course.
Goldman Sachs simply hedged their bets and went short on Polish currency. They correctly predicted the value of the Polish currency would fall, and it did. There is nothing illegal about going short. One can go long or short. Anyone with market saavy and some cash to invest can do the same.
All of these Polish firms (banks and other) could also have purchased short contracts on Polish currency, and they would not be in the mess they are in today, at this point in time of course.