Solid Predictions, Solid Financing–Is Kyle Bass Trustworthy?

Kyle Bass has made a huge name for himself in the last seven years through two successful financial predictions, associations with a known socialist, and engineering of the stock market through a legal loophole that got congress on both sides of the political fence jumping like bean-shaped racially insensitive Spanish-speaking pupae. Or Mexican Jumping Beans, for the individual not entirely short-circuited by politically insensitive prose. The point is, Bass has been surprising people and hopping all over the place, and it makes sense to keep an eye on him.

He jumped onto the scene in 2007 when he predicted America’s lending practices vis-a-vis Frannie Mae and Freddie Mac were going to lead to the bursting of an economic bubble in the very near future. Lo-and-behold, exactly that happened in 2008, and suddenly everybody was paying attention to Kyle. He decided to double down on his professional trustworthiness by taking on Japan next, and again successfully predicting an economic implosion that resulted in stimulus packages. With this in mind, it makes sense that many agree with his assessment that China will likewise undergo economic bubble-bursting in the near future. Kyle Bass believes this will happen within the next one to two years, and he believes the reason for this is that the Chinese economy has expanded–ostensibly–some 400% in the last eight years. They’ve done this expansion through loans which were made in excess of the country’s Gross Domestic Product (GDP). Basically, China’s made some bets that can’t be cashed, and the Asian bookies surrounding her are going to be looking for payment.

Is Kyle’s assessment correct? Well, it’s hard to say. Whether or not he’s trustworthy depends a lot on where the observer is coming from. For example, he’s got ties to Cristina Fernandez de Kirchner, a well-known Argentinian socialist. But by the by, hedge fund manager Kyle Bass is also an Argentine; so is his relationship to Kirchner benign or implicit? It’s impossible to say from an exterior perspective without hard data.

The other mar/accolade Bass has is his ability to devalue big pharmaceutical stocks and cash in on it legally through a loophole in the American financial system. Bass made a company called The Coalition For Affordable Drugs. The idea was to diminish the cost of medication from big pharmaceuticals. This was successful, and collaterally the stock of big pharmaceutical organizations dropped, and Kyle made a pretty penny. Seems kind of like rigging the game, doesn’t it?

So will Kyle’s predictions about China prove trustworthy? It’s difficult to say. About the only conclusion anybody can really come to is that Bass means business, and he’s got his finger on international financial pulses one way or another.