Kyle Bass on the Economic Crisis
For those of you who haven’t heard of Kyle Bass, he heads up a hedge fund (Hayman Capital) out of Dallas. In 2008 Bass hit it big by hedging against sovereign debt in Europe in the midst of the mortgage backed security fueled market collapse. Bass didn’t have a crystal ball, simply the clarity to understand that the numbers were pointing to an economic meltdown. His interpretation of today’s market data is frankly refreshing, as lacks the endless optimism, hot air, and outright BS that one can hear from prominent commentators on CNBC or Fox Business.
Toward the end of an interview with a hostile Sarah Montague, host of BBC’s HARDtalk, with regards to the global economic malaise Bass asserts that the world is atoning for its past profligacy, and inability to hold its economic leaders accountable for their misdeeds. He illustrates with the comparison that “Capitalism without bankruptcy is like Christianity without hell…you have to have atonement for the ridiculous amounts of spending that the US and Europe…” His ideas on what this atonement looks like exactly is nothing short of the rending of the social fabric of the West, and the implications of the current economic mess could result in apocalyptic scenarios as the world is forced to pay the piper. You can view the interview here:
Bass has some additional, lengthier interviews at the 2010 and 2011 AmeriCatalyst conferences (Real Estate market), where he outlines his own understanding of the ongoing market crisis, and how it will affect some of the major economies – his outlook isn’t good, as he opines that this crisis can only end in one way – war. If you are going to take an hour, watch the 2011 interview first, since the info is most up-to date.
