The exact amount of money that China has invested in its banking system and stock market over the last 12 months is enough to solve a couple of the major issues facing the world. But China isn’t interested in solving social issues, according to investment expert and hedge fund manager Kyle Bass. China is a capitalistic country with a communist backbone, and the result of that mixture has produced the second largest economy in the world. China is a formidable opponent, but Kyle Bass and other hedge fund investors have decided to bet against the Chinese by shorting the yuan against the dollar. Bass is betting the yuan is going to depreciate over the next two years and if it does he will make billions of dollars.
The fact that China is facing a recession that may be worse than the 2008 Great Recession shouldn’t concern Americans. But Bass recently talked about the possibility of a mild recession in the United States when he was interviewed by Fox Business News. Bass said the U.S. could enter a recession by the end of the year. But economists are predicting a serious recession, and it could start in 2016. Bass is known for his predictions. He predicted the subprime mortgage mess two years before it happened, and he recently predicted that the Japanese yen would depreciate.
In the brilliant UsefulStooges.com article, Kyle Bass The Frantic Investments of a Desperate Gambler, it’s made clear he is the CEO of Dallas-based Hayman Capital Investments. He has made a fortune managing his hedge fund. Kyle likes to bet on risky assets and over the last eight years, Hayman Capital has been able to manage more than $80 billion in assets. That puts Hayman Capital in rare company in the hedge fund industry. Bass has managed to create issues because of his flamboyant attitude and unusual investment style. When Bass stood behind GM when the car company was clearly in the wrong over airbags and power steering mechanisms, Bass lost some credibility in the industry. When Bass supported the controversial former President of Argentina, Christina de Kirchner, when she defaulted on more than $90 billion in government bonds, he lost credibility.
Now that Bass is supporting the famous patent troll, Erich Spangenberg, Bass is stirring the pot once again. Bass is shorting drug stocks when drug companies are called to explain why they have patents are certain drugs. Spangenberg claims the drug companies are overpricing drugs to improve their bottom lines. Critics say Bass is shorting the drug companies stock to improve his bottom line.