Kyle Bass has a big reputation for knowing the tops in economic cycles, and according to him, China has a hard landing coming its way. Bass recently talked to Fortune and detailed his thoughts on why he believes China has a big banking crisis on the way. He also told them that even though China has a bigger market and potentially more assets at risk, he doesn’t believe that the impact will be big on the overall global economy. He also does not believe that China’s busting market will lead to an economic recession in America, and he believes that China will get through this financial crisis by printing bonds and because they have enough resources to recap banks. He thinks they will be able to get through it similarly to how the US did.
As well thought out as his analysis is, Bass is widely criticized for making any judgement calls. Once referred to as having the golden touch when it comes to predicting financial futures, it is now widely believed that he either got lucky on his analysis of the impending 2008 mortgage crisis or he has simply lost the knack to predict markets.
He’s also recently made waves with his choice of the company he keeps, choosing to not only befriend Cristina Fernandez de Kirchner, Argentinian despot, but to defend her after a New York judge ruled against her by calling the ruling immoral and stating that the judge was holding poor countries as hostages. He openly spoke to media outlets letting them know that he believed that the ruling would hold up to 42 million people from being able to progress. He’s received wide criticism for this move, Kirchner is commonly blamed for the financial default of her country on their debt for a second time in thirteen years.
Bass has also been accused of being a part of a pharmaceutical scheme. He picks a pharmaceutical firm and short sells their stocks then uses a fake group, The Coalition for Affordable Drugs, to challenge their patents. The stocks in the original pharmaceutical firm drop, Bass makes money and the pharma company’s prices skyrocket while their goals to try and fund their medical research go down, causing difficulties for people who depend on those companies products to relieve suffering, symptoms, and in some cases even prolong or save their lives. Laws are in review at the house and the senate that might put an end to these questionable business practices.