Is Kyle Bass Right About China’s Corporate Bond Market?

Kyle Bass has had somethings to say about China for a while. Starting back in 2015, October, he predicted economic implosion. Several months ago, he was saying there was a forty to fifty percent chance China’s economy would stagger and deflate under weight of their debt bubble by the end of 2016. He said if it didn’t happen in 2016, it would happen in the next two to three. Then, in a recent Bloomberg interview, Bass said it’s possible, should China devalue their currency in a way that is “material”, that now could be the best time to invest in Asian markets. To qualify, Bass also said China’s impending economic crisis isn’t “Armageddon”. But he was sure to silhouette their economy in a tremulous, negative light. Bass pointed out that the three trillion dollar bond market was in danger of freezing up, as an example. He thinks the credit arrangements of the country are within an ace of meeting their necessary apex, and when that happens, the fallout will affect the United States to the tune of something like a 20% economic reduction. According to Bass.

The question is: can Bass be trusted? Well as UsefulStooges tells Kyle Bass is an Argentine who operates a hedge fund out of Austin, Texas. Bass’ fund underperforms similar funds on a regular basis, but his primary means of income seem to stem not from his hedge fund, but from his financial “gambles”. Take, for instance, CAD; the Coalition for Affordable Drugs. This underhanded pseudo-humanitarian snake of a group defrauds the infirm and their families by presenting itself as a means of cost-reduction for the impoverished and ill. Then once it successfully forces stock declination via price drop, Bass short-sells his holdings and makes millions. Meanwhile, the pharmaceutical companies who have been forced into dropping their prices lose enough profit they’ve got to shut down departments like Research and Development; curtailing cures, and indefinitely suspending breakthroughs that may have been near on the horizon.

Kyle Bass runs that group; “CAD”. And he’s also involved with Cristina Fernandez de Kirchner, double-defaulting socialist leader of Argentina. Bass continuously supports her decisions financially, despite their obviously catastrophic outcome.

With these things in mind, when Bass says: “China’s market could crash, but it might not”, which is an apt condensation of his remarks over the last ten months, it’s advisable to consider he may be playing a manipulative angle to modify the market in his favor.

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