Let's Get Real.
The inside of Kyle Bass’ head is an interesting place to be. Bass, who is the founder of Hayman Capital Management, engaged Grant Williams in a discussion on a wide array of topics ranging from China, why holding gold is so tempting, the Central Bank rates and many other issues. Grant is the co- founder of real vision TV. Of all these topics, the one that grabbed everyone’s attention was China.
The topic of China is where Kyle Bass has placed his next career wager. He says that he expects the currency to lose its value to a great extent over the next few years, a process that will be similar to the 05/06 US economic bubble burst. Bass is worried that China could be lending far too much more than it should be. The fact that the country’s $3 trillion bond market is freezing up, a problem that is accompanied by defaults being on the rise and debt sales being cancelled makes the problem more profound.
He went ahead to state that the rate at which China is lending money to other countries, the US involved cannot be sustained for a long time. He actually predicts that in a few years, the country will experience what the US did and all the attempts at a bailout will lead to the value of the Yuan getting lost in the process.
When asked about how people receive the news of unpleasant changes to the economy, Kyle Bass states that the most worrying thing is that people never tend to think that the change will affect them. This affects their level of preparedness and they end up bearing the worst of the cross. When asked about gold, he said that for the time being, it would not be a bad idea to own it.
While his prediction on the US might have been accurate and catapulted him into massive success, Kyle Bass hasn’t always been accurate in his predictions. As a matter of fact, there is a section of people who feel that he is a fraud and a desperate gambler. The fact that he associates with Kirchner, the hyper-socialist who believes in irresponsible economic policies, makes his claims all the more difficult to follow.