In this episode of Planet Money, we dive into the dramatic events of "Black Wednesday" in 1992, when George Soros's hedge fund made headlines by shorting the British pound. Led by Stan Druckenmiller, with contributions from Scott Bessent and Rob Johnson, the fund executed a bold strategy that involved quietly building a significant short position. This maneuver forced the UK to exit the European Exchange Rate Mechanism (ERM) and resulted in billions in profits. The episode not only unpacks the economic backdrop of this pivotal moment but also examines the fund's decision-making process and the ethical implications of such high-stakes financial tactics.
