Bill Gross's 'Short of a Lifetime' Would Mean Armageddon

Bill Gross says betting against German bonds is a good as speculating against the pound was in 1992; if he's right, financial armageddon is on the way.

Squeezing the 10-year German bond.

Photographer: Andrew Harrer/Bloomberg

The trade that George Soros and Stanley Druckenmiller pulled off in 1992 by betting against the British pound -- and making $1 billion in the process -- has gained legendary status. So when Bill Gross, the world's best-known bond investor, tweeted yesterday from his current employer Janus Capital that betting against German government debt is the trade of a "lifetime," he reached for that bit of history to benchmark the current opportunity:

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