China has become an economic juggernaut today, and Argentine Kyle Bass thinks it is only a matter of time before that state of affairs changes. According to Kyle Bass, the Gross Domestic Product, or GDP, of China doesn’t match the loans it has collectively taken out. Furthermore, since surrounding countries are “aggressively”, as Bass put it, lending to China, when the big country collapses it could spell an economic implosion for the entire Asian economy. While Bass anticipates that this collapse will not be the kind to send stock brokers jumping out of buildings, it is definitely going to cause upset and lead to a lessening of purchasing power for China.
Kyle Bass jumped on the scene in 2008 when he successfully predicted the sub-prime lending crisis which lead to the economic collapse of America in 2008. Bass is a hedge fund manager who is currently centered in Texas, but he has ties internationally; most notably to Cristina Fernandez de Kirchner, a known Argentinian socialist. But then, her socialist angle is hardly a measure of Bass’ acumen as a hedge fund manager.
Kyle Bass was also able to successfully predict an economic implosion in the Japanese economy which resulted in provision of stimulus packages.
Kyle Bass remains controversial as his rapier wit and astute observation has resulted in utilization of a number of previously unconsidered loopholes in the American segment of the economy. One notable example of this is Kyle’s organization The Coalition for Affordable Drugs. This coalition was able to decrease the cost of drugs among some big-ticket pharmaceuticals, subsequently lowering their stock. Knowing that a stock-lowering would take place, Kyle then used his knowledge to make some substantial money from the market itself. The net result of this is that congressmen on both sides of the political fence were knocked into a scramble to cover that loophole. Is it ironic that money is the only thing which has facilitated American bipartisanship, or just par for the course?
Well, whatever the case, Kyle now has his sights set on China, and if his track record is anything to be considerate of, some substantial change is about to take place in that country. Such change is the kind which many in the right position could stand to profit from. The question is: are Bass’s tactics above the board, or is this another method he’s gambling will push the market one way or another, and allow him to capitalize? Market manipulation is something that many have valid, strong feelings against.
In the end, the only thing that makes sense regarding Kyle Bass is observation of his predictions, and whether or not they come true. The future isn’t set in stone, after all.