John Paulson Lost $1 billion in 2 days!

Wow, now imagine all of the things he could have done with that $1 billion that he lost over two days time.

The metal’s drop wiped out almost $1 billion of hedge-fund manager John Paulson’s wealth in the past two days. The 57-year- old began the year with about $9.5 billion invested across his hedge funds, of which 85 percent was in gold share classes. He’s sticking with his thesis that gold is the best hedge against inflation and currency debasement, John Reade, a partner and gold strategist at New York-based Paulson & Co., said in an e- mailed statement. 

He must be eating antacids like it was Pez.  What is also pretty bad is that he is long all sorts of gold miners which makes that portfolio even scarier. I read an article that it costs gold miners about $1200 an ounce to dig the gold out of the ground. So if gold prices drop below that price then they will go bankrupt like crazy. Many smaller gold miners are heavily leveraged (mining gold is super capital intensive) so more of that $9.5 billion could be at risk as well.