Kyle Bass Cautions Against Investing in China
The founder and CEO of Hayman Capital Management, Kyle Bass, has pointed out that if only investors realized how vulnerable the Chinese banking system is, they would not be investing there. In a speech at Milken Institute Global Conference, Bass highlighted that common sense was enough to tell investors that they will have a loss cycle and by putting in mind how precarious the system is, an investor will not be allocating his or her money in China.
Kyle Bass, a hedge fund manager who got fame after betting against the 2008 US subprime mortgages is currently predicting losses for the Chinese banks and he is raising money to begin a fund that is dedicated for bets within the nation. Bass insisted that investors who are putting money in the Asian market should ask themselves if they are able to handle thirty to forty percent write-downs in the Chinese investments.
Kyle’s Career Choices
As time went on, Kyle Bass has not found it all smooth; his magic touch is long gone, and he is always making a bad call after a bad call. To make matters worse, he is making the calls in full view of market – he always wholeheartedly accepts TV invites where he makes his so called analysis that contribute to his unpopularity.
As if making bad calls is not enough, he has also made unsavory alliances. While everyone in the business believes that Cristina Fernandez Kirchner was a thorn in the Argentinian economy, Bass cannot refrain from sugarcoating the woman with praises. When Argentina defaulted its sovereign debt a second time in thirteen years, Bass defended the action and rationalized it making him sound out of touch with the reality. Bass has continuously championed her ludicrously irresponsible economic policies while ignoring the astonishing degree that she and her unscrupulous cronies have looted from their own people.
Bass has been accused of colluding with Erich Spangenberg – a renowned notorious patent troll. They are known to pick out specific pharmaceutical companies, short-sell the firm’s stock, and later challenge their patents through Coalition for Affordable Drugs. The results are: diminish of stock, Bass gains some few million dollars, and pharma firm’s prices escalates while their intension to fund research goes down. This causes harm to the thousands of individuals dependent on the pharma products.