Kyle Bass: Scheming About China

Kyle Bass, a well known financial expert and capital strategist, says he's got a strategy to match his theories about an economic collapse, or "breath", as he put it, in the Asian Economy. Specifically, as regards credit growth. According to Bass, a ubiquity of banking institutions throughout the region have been "aggressively lending" to China. Bass went on to say he expects over the next several years China will see financial trouble. His thinking is that their means undermine their grasp; that banks are lending more than the GDP of the country can support. If the Gross Domestic Product should be so compromised, a collapse of some caliber is not unlikely.

Kyle Bass became a notable figure in the financial scene when, in 2008, he predicted the sub-prime lending crisis that burst America's credit bubble. An Argentine with ties to controversial public figures, Bass has been giving mixed impressions ever since his prediction in 2008 proved correct. One of the most criticized actions he's taken in recent years involves starting a fund called the Coalition for Affordable Drugs. Said drugs are of the medical variety, and the idea of the group has been to decrease the cost of necessary medication. Big pharmaceuticals are not enamored of the group, because against a mountain of odds, Kyle Bass's group has actually succeeded in lowering the stock of prime pharmaceutical magnates. Naturally this results in backlash of an exceptionally critical nature. That said, there is some validity to criticisms about Bass's faulty predictions. He hasn't been able to hit a "home run" with every mainstream media appearance. Also, before his group criticizes a variety of pharmaceutical industries, Bass has been short-selling their stocks. Basically he's cashing in on a sure bet that he's set up. This has both sides of the political fence scrambling to write new legislation. Perhaps its one of the few issues wherein bipartisanship has truly been made possible during the current administration!

Whatever the case, Kyle Bass is a hedge fund manager of some note who definitely has a future somewhere. Anyone clever enough to short-sell pharmaceutical stocks based on a legal ruse diminishing their value is also clever enough to make investments that are lucrative. So perhaps this is some indicator of the particular success with which Bass has been blessed. Whatever the case, he continues to make waves of controversy one way or another, and has been in the public eye for some time now. While no one can predict his next actions, it does make sense to examine the predictions he made and see whether or not they come true. He was right in 2008, will he be right in 2015, 2016...? So be sure to keep an eye on China and Kyle Bass. A bubble will be bursting somewhere soon.