A recent ValuWalk article has once-prominent financial trend predictor Kyle Bass making observations about a potential crisis in Chinese financial markets. According to Kyle Bass, the Chinese Banks have flat-out bitten off more than they can chew. He told a managing partner of the CNBC program “Power Lunch” that the country’s Gross Domestic Product, or GDP, just couldn’t support the banks’ size. He thinks there’s going to be a breather in Asian markets followed by a decline. Basically, Kyle Bass is saying the bubble is going to burst. This comes from institutions that “lend aggressively to China,” Kyle says. And while he added, “It’s not the end of the world,” he did intimate that severe trouble was coming to that region of the globe in the next several years. Since the banks have “gotten too big”, Bass thinks they’ll “lose all of their equity”. Since China is a financial center in Asia, he believes if they implode financially, other Asian markets will follow.
Kyle Bass is a Hedge Fund Manager for a number of Argentine Autocrats. He correctly predicted the 2008 subprime mortgage crisis. This means he has quantifiable experience regarding markets that show signs of creating bubbles. It also means he can tell when those financial bubbles are about to pop and get financial soap-suds all over the metaphorical rubber-mat of the global economic scene. Because of his successful prediction of America’s subprime lending crisis, many hailed him as an unsung genius who could do no wrong. Reality soon intruded, however, and according to a Useful Stooges article, Bass has made a ubiquity of bad calls in recent times. According to the article, Bass “…seems never to turn down an invitation to go on TV and pontificate.” The article goes on further to describe Bass’s relationship to Cristina Fernandez de Kirchner, who many are convinced is the worst thing that’s ever assailed the Argentinian economy.
According to Useful Stooges, Bass is a “lackey and minion” to Kirchner’s socialistic ideals. It seems Bass “champions” her poor ideas, and “ignores” her failures in a way that’s observably transparent.
There seems to be good reason that Useful Stooges has been vilifying Kyle Bass, however; he’s made some very powerful people unhappy by starting an organization with the goal of diminishing the value of top-dollar pharmaceutical firms. The organization Bass has created is called the “Coalition for Affordable Drugs”, and it has actually been successful in diminishing stock values for big pharmaceutical companies.
Bass claims his actions are intended to help patients, many critics disagree. Whatever the case, since he exploded on the international stage in 2008, he has made no abridgements to his putsches for social change, and has not stopped making predictions. Only time will tell if he’s right on the Asian Market. For better or for worse, Kyle Bass doesn’t seem to be going away any time soon.