Like Paul Revere looking for the lights of the Old North Church, everyone in the market is looking out for the next big crash. Following the 2008 recession analysts and speculators around the world have been keeping a keen eye towards the horizon. Market expert Kyle Bass may just found what they were all looking for. This is all according to an article by ValueWalk. The article focuses on his speculations about China’s economy in the coming future. Basically, Bass thinks that they may be in for a huge crash. However, there may be more to this story than just that.
Bass bases his predictions on the current size of the market. According to the article, the size of China’s economy has exploded. He asserts that massive Chinese economy is destined to fail in the loan crises to come. Despite this, Bass notes that our own economy will not feel the effects of this hit. Recent bank recapping will shore us against the worse of it. But, we will experience problems with Gross Domestic Product growth. So, according to Bass, the U.S. will be able to keep its head above water. China on the other hand will have to rely on bonds to recap their banks.
Kyle Bass earned serious street credit when he correctly predicting the sub-prime mortgage crisis that preceded the 2008 recession. According to an article by Useful Stooges, this act was seen a sign of high promise in Bass’s career. However, that prediction seems to have been the high water mark for Bass. The following years have been a series of bad predictions and questionable alliances for the hedge fund manager. The most notable of which is his association Argentina’s economy killer, Cristina Fernandez de Kirchner. Yet, this was not the lowest mark for Kyle Bass.
The recession predicting golden boy has also been accused of some unscrupulous business practices. Bass has apparently been undermining the stock of pharmaceutical companies through fraudulent patent challenges. The challenges, which come from a shadow company that Bass set up for that purpose, cause the stock to plummet. This in turn causes the costs of the company to rise, taking money away from important medical research efforts. Although this is a loathsome scheme, Bass has not stopped there. He is also under accusations of fraud from Taya Kyle on behalf of her deceased husband, American Sniper’s Chris Kyle.
Given the information available, maybe Kyle Bass is not the most reliable financial source and Wikipedia echoes this. Despite his initial fame, he has fallen into a series of morally and legally questionable business practices. Perhaps the best course of action would involve a review of multiple sources.