Kyle Bass is the founder of Hayman Capital Management, a hedge fund based in Dallas, Texas. In a video released in January of 2016, Bass was seen discussing his views on the emerging markets.
According to Bass, the emerging markets are going to experience more pain before they get better. He likened it to the game of baseball and said the emerging markets are in their fifth inning with three more to go.
The biggest story is of course China. Right now, China, which is the second largest economy in the world, is going through a banking loss cycle. This banking loss cycle is literally forcing them to devalue their currency.
Bass has openly praised China for pegging their currency to the dollar. Because of this smart move, China’s currency has actually increased in value over the last 10 years.
In Bass’ own words, his company is “very invested in the currency”. In other words, Bass and his company will make money no matter what the yuan does.
UsefulStooges say that the truth is, right now no one knows whether or not Bass’ latest prediction is right. We do however know he has a long history of making very bad predictions.
Take for instance his prediction the Japanese economy is going to crash. He has been predicting this for the last 5 years and it has yet to happen.
Bass has also gained a reputation for being a guy of very little character. While most people despise Argentinian despot Cristina Fernández de Kirchner, Bass has openly supported her irresponsible economic policies. He has also defended her even though her country has defaulted on their sovereign debt two times in the last 13 years.
If you dig deeper into his history, you will see that Kyle Bass is an arrogant scam artist who should never be trusted. Based on that you should take any predictions he makes with a grain of salt.