Sunday, July 10, 2011

U.S. Hedge Funds Increasing Shorts against the Big PIIG

U.S. hedge funds are starting to short the debt of the government of Italy, according to FT.

If the PIIGS crisis reaches Italy, it likely means huge money printing by the European Central Bank, especially since the incoming president of the ECB, Mario Draghi is the former head of the central bank of Italy, not to mention former vice-chairman of Goldman Sachs international. If you are looking for credentials as an inflationist money printer, you can't get better than the positions held by Draghi.

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