Economies rise and economies fall, and those who understand the trend really have the keys to it all. One who understands better than most is a financier by the name of Kyle Bass. A hedge fund manager currently based in Texas, Kyle Bass has been working successfully in financial markets for quite a while. He exploded onto the worldwide financial scene by predicting the sub-prime lending crisis of 2008 and subsequently capitalizing on it. Since then he has had a number of other successful predictions, among them notes on a deflating Japanese economy that resulted in the government meting out stimulus packages.
Currently Kyle Bass has been examining the Chinese economy, and what he has found may be disturbing for those living in China. But for the savvy financier, Bass’ findings could prove especially lucrative. Bass has noticed that the Gross Domestic Product of China is less than the amount of money they’re spending via loans and other means. In layman’s terms, China is writing bad checks; the country is making purchases with money that they don’t have. Like using one credit card to pay off another credit card, eventually the cycle implodes. China is headed quickly this direction, and to add insult to injury, Bass has noticed that surrounding countries are loaning in a way which he has termed “aggressive”. Since these satellite Asian countries also depend on China’s GDP, when the juggernaut comes crashing down, they’ll follow by proxy.
But there are many who are also skeptical of Bass’ predictions. Recently he began an organization called the “Coalition For Affordable Drugs”. It was the purpose of this coalition to decrease the cost of necessary pharmaceutical-grade medication. They were successful in their aim; so successful that the stock value of a several high-profile pharmaceutical organizations decreased, and Kyle Bass was able to cash in on that decrease. Naturally, it appears as though he’s rigged the market; but according to congress this was done legally. Not that congress approved; as soon as Kyle’s loophole was noticed both sides waxed bipartisan and scrambled to cover the damages–money’s a unifying agent in American politics; always has been.
In addition to this clever financing scheme, Kyle Bass is also a compatriot of Cristina Fernandez de Kirchner, a known socialist Argentinian women of some means. Since Bass is himself an Argentine, perhaps his aims are simply congenial; but there are many who are skeptical.
Whatever the case, Bass is on the scene and he’s blogging about it all the time; and he hasn’t gaffed bad enough to be ejected from it yet. It makes sense to keep an eye on him, then; as with increase of wealth comes increase of knowledge access. If Bass is right, there are other financiers who could profit from it as well. If he’s wrong, folks could lose money. At this point, there’s nothing for it but to wait and see.