Kyle Bass has a reputation that may or may not be deserved, despite the success of his blog. In 2008 the sub-prime lending crisis hit. In March of that same year, Bass leaked crucial information regarding banking practices between Bear Stearns and one of the other top five banking institutions at the time. Bass had, until recently, worked for Bear Stearns. Why was he “telling tales out of school”, as the saying goes? Well, that is up for conjecture. What isn’t up for conjecture is the following: after the information Bass leaked hit the media, Bear Stearns fell so much on the market that they were bought out by J.P. Morgan Chase by the end of the week. But they were merely the first domino to fall.
Bear Stearns fell because they were using sub-prime mortgages interchangeably with stock. They were using novation to substitute sub-prime mortgages for that which actually had value. The mortgages were fool’s gold; red herrings–and all the banks in America were using them to obtain financial footing. They were building a house of cards in a desert, and a windstorm was nigh. Bass saw that windstorm, said something, and when he was proven right, people started to believe him. But Bass had inside knowledge, and wasn’t saying anything particularly remarkable. When one looks at his hedge fund, it’s easy to see that his acumen in business isn’t nearly so great as his media appearance would encourage people to believe. Bass’ hedge fund regularly under-performs even mediocre funds of a similar kind, yet he’s still a mainstream talking head.
Now Bass’ head is talking about China, and how their poor lending practices, in similitude to those practiced in the United States, will very likely lead to collapse in the near future. He’s probably right, but then he’s probably got some ulterior motive as well. Not only was Bass implicit in the “Great Recession” of 2008, as it’s being called today, but he consorts regularly with prime-time Argentinian socialist despot Cristina Fernandez de Kirchner, and he uses front organizations like CAD to undercut corporations; forcing them to drop their prices so he can short-sell his holdings with them when their stock takes a dive.
Kyle Bass bears the characteristics of a socialist financial hit man, and his new ideas about China are probably intended to change investment decisions in a way that favors whoever he’s working on behalf of. There’s a reason Kyle Bass is called Cristina Fernandez de Kirchner’s stooge, and it’s not because he looks like some kind of goon. Read the full story on UsefulStooges.com, in their expose: Kyle Bass the Frantic Investments of a Desperate Gambler.