Kyle Bass used to work for Bear-Stearns, one of the top investment banks on Wall Street prior the 2008 financial collapse. Shortly after his employment relationship with that organization was no more, Bass let a prominent financial journalist know information regarding trading between the banks. That information dropped Monday, by the end of the week Bear-Stearns was hemorrhaging stock so bad J.P. Morgan Chase was forced to buy them out. By the end of the year, the US stock market imploded. Kyle Bass wasn’t the cause, but he did push over a kind of domino culminating in the collapse. It’s like he came upon a gymnasium of dominoes set up for a show beforehand and knocked everything down before the day’s big performance. He became famous for it, because he made millions short-selling against US sub-prime mortgages. It was a good, common-sense move; but his benefit came at the result of substantial losses.
Now Kyle Bass is saying that Chinese investiture should be carefully considered in light of that country’s decade-old credit bubble, which is yet expanding. Bass knows this growth isn’t sustainable and will force a currency devaluation within the next two to three years. As a result he’s tied up a billion betting against Chinese currency and for the US Dollar. However, Bass has also said he expected the devaluation to hit by the end of 2016. Well, 2016 is over in four months, and it’s yet to come. Bass said in April that there was a forty to fifty percent chance China’s bubble implosion would force American economy into decline. That’s a chance less than binary. In fact, it appears to be a kind of investor scare tactic which may force the Chinese implosion earlier as rich interests are curtailed that would otherwise not have been.
When China’s economy bottoms-out and forces currency devaluation, it’s going to drop a fifth right out of America’s economic value–again according to Bass. Looks like he’s involved in manipulating another recession. Between his relationship to Cristina Fernandez de Kirchner, and the poor performance of his Texas hedge fund Hayman Capital Management, it almost seems like Kyle Bass uses front organizations to accomplish subterfuge financial victories.