There are always going to be individuals who make money when there are individuals who are struggling and even losing out on all of their life savings. Kyle Bass is such an individual who has been doing this for years. While everything he has done is perfectly legal, he has found ways to make money off of other who are losing their homes, losing their assets or by creating public stirs to try and frighten individuals into pulling their money out of investments, which opens him up to buying them up and making even more money for himself. Again, perfectly legal, and there are other individuals who do this, but that doesn’t mean the average citizen doesn’t need to like it.
Kyle Bass is a Hedge Fund professional who, while investing in hedge funds and buying out delinquent accounts on his own, has been able to both make money off of these investments but also create his very own company at the same time. He created the company Hayman Capital management, L.P., based out of Dallas, Texas. He and his entire company profited a considerable amount off of the recent subprime mortgage crisis that hit the United States following the financial bubble burst of the real estate sector beginning in the end of 2006. Some might wonder how someone is able to make money off of such an issue. Kyle Bass and his company purchased credit default swaps on the sub print securities offered by different investment banks. What this did is he purchased the different amounts of money peopled owed banks for pennies on the dollar. Banks were losing so much money so fast on the subprime mortgages that they wanted to at least bring in some of the money owed to them. So, Kyle Bass and Hayman Capital Management purchased these loans. This allowed Kyle and the company to hold onto the loans and go into business with the original home owners. The home owners then had to pay the money directly to Hayman Capital Management instead of the original lenders. So, over the long period of time, Kyle made millions of dollars off of these default loans. Often times, the company even went after these individuals for the money.
UsefulStooges points out that Kyle and Hayman Capital Management has made money off of other similar crises as well. He managed to create a media frenzy when he made different predictions about the economic situation in both Japan and Argentina while also stoking the fire on the European credit crisis. With all of this in mind, Kyle has made a significant amount of money, all legally, off of the financial misfortunes of other individuals and home owners. That doesn’t mean other people need to like it.