By Jacob Wolinsky. Originally published at ValueWalk.
Steve Eisman gained fame when predicting the financial crisis of 2008. Now he is shorting British banks because of the risks a hard Brexit poses to the British market.
Steve Eisman: A Hard Brexit Is The Path Of Least Resistance
Q3 hedge fund letters, conference, scoops etc
Transcript
Steve Eisman you are shorting three UK banks because of Brexit risks and the risks for a hard Brexit. Tomorrow is the big vote in parliament. What do you think will happen.
Well I think the probability of Theresa May losing is close to 100 percent. The issue is how much you lose by if she loses by a lot I think the possibility of heart it goes up even more if she loses by. Less than a lot. I think people are going as far to speculate that maybe there will be a second referendum or some other alternative that they think is palatable. I actually think that that’s not likely. That heart Brexit is the path of least resistance at this point. But we’ll see what happens in a couple of days.
Why is that the path of least resistance at the moment.
I think it’s the path of least resistance because nobody can get their act together. You know nobody can. There’s no coalition or consensus about anything. So anything that anybody proposes seems to fail and so de facto if everything anybody proposes fails therefore there’s a hard Brexit because that has a deadline.
Twenty not that much. Right. So the leader of the Opposition Jeremy Corbyn has said he’s going to call a vote of no confidence rather quickly after Theresa Theresa the next day. Yes the next day off to Theresa May as expected loses the vote Yem is this risk of a new general election something you think about only every day only every day. Yes.
You know my theory about the UK in terms of risk is a hard it and b Jeremy Corbyn becomes prime minister. The combination of the two would cause the UK stock market to go down by a lot. I don’t know whether that no confidence vote succeeds or not.
I just know that Jeremy Corbyn becomes prime minister as negative for the markets and you will probably be shorting more than three British banks without question without question. Thank you very much the investment.
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