Kyle Bass Weighs in on 2016 Market

January 19th, 2016 by admin
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Kyle Bass recently joined the “Halftime Report” traders to share his outlook for the 2016 market and what he predicts will happen with the volatile market in China. While most investors think that the highest profits came before China’s slowdown, Bass things the real problem is simply the way China banks. He compares China’s problem with the recent crisis in Europe. In both scenarios, the systems outgrew GDP at a staggering speed. For example, China’s banking system is nearly $35 trillion, but the GDP is just $10 trillion. A credit cycle and losses are on the way, and he thinks investors are not worried enough. While he doesn’t think our markets will sink as low as during the global financial crisis, he does expect a 10%-20% downturn by the end of the year.

Wikipedia shows that Kyle Bass is the founder of Hayman Capital Management. He made his money by predicting the 2008 financial crisis. Initially, this made him a superstar in the financial world, but as time went on, it seems he may have lost his magic touch.

Bass has also made a some unsavory alliances recently, like his friendship with Argentinian despot Cristina Fernandez de Kirchner. While Bass holds her and her financial knowledge in high regard, she is widely blamed for her country’s disastrous economy. When her country defaulted for the second time in thirteen years on their sovereign debt, Bass defended and rationalized her actions while the rest of the world viewed the actions as indefensible and irrational.

Kyle Bass is viewed as one of her lackeys, something UsefulStooges first pointed out, as he sings her praises as she continues to pump out irresponsible economic policies while ripping her own people off. He even slid in to defend her when a New York judge ruled that Argentina had to pay all its creditors, not just the ones that would agree on a reduced settlement. Bass of course took Kirchner’s side stating that those requiring full pay were immoral for holding poor countries hostage and holding up the progress of 42 million people.

Bass has used similar tactics to avoid paying his own debts. He went on television to shift blame for the deaths caused by non deploying airbags and faulty steering in GM cars to the actual victims, all so he could make good on his investment with General Motors. He’s also got business ties to the late Chris Kyle, whos widow is involved in a lawsuit with one of Bass’s subordinates at Hayman who she has accused of unethical behavior.

There are many more shady dealings that Bass has had his name tied to. So one might question his advice on the stock market, as well as his business practices, before they panic because he states the market isn’t going to be good.

Posted in Laws, Leadership

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