Stocks and currency prices crashed in Italy earlier this month, again, as the country continues to hemorrhage money and threaten to leave the Eurozone. Many hedge funds are making a profit on this, or at least trying to, as Europe continues to crash. Quoting a recent New York Times article:
From 2010 to 2012, a parade of investors, deeply skeptical about the eurozone’s ability to hold together, wagered that the bonds of debt-plagued countries like Greece, Ireland, Italy and Spain would keep falling. It became a self-fulfilling prophecy as pension funds, mutual funds and banks sold these suddenly risky securities.