The financial markets and especially the emerging markets are in the mid-fifth lining according to Hayman Capital Management fund manager Kyle Bass. He also pointed out that things might not be very smooth contrary to what many might think and that the same markets might go through three more painful innings so as to regain their place. Bass does not think that Brazil is going to see any financial recovery soon. If anything, he thinks that the country will remain or even go into much deeper economic turmoil if it does not deal with its corruption menace.
On Russia, he says that for a better economic situation, the country has to deal with its president’s chess moves and international sanctions first. Among the many economic giants of the world, it is only India that he thinks is in a not very delicate position. Currently, he thinks that China is going through a banking loss cycle that is in all ways almost similar to what the US was faced with during the financial crisis of 2008. In previous years according to him, China used to smartly peg its currency to the dollar and for that precise reason, it managed to appreciate more than 50% than other countries of the world since 2005.
He also said that his hedge-fund is not short of Chinese equities though it is very interested in the currency because it foresees a very significant devaluation in the next 12-18 months.
UsefulStooges is quick to point out Kyle Bass is not strange to giving his opinions in matters affecting the financial markets of the world. He first of all made his debut on the international headlines when he correctly predicted the subprime mortgage crisis of 2008. At that time, many people were convinced that Kyle must be a genius of sorts because he was among the very few who managed to make a considerable profit.
However, with time, he has actually proved that he is not a genius but rather, a person with many weaknesses when it comes to looking for attention. In the recent few months, he has been literally hopping from one television station to another offering his so called professional analysis of the financial markets. Different with the earlier days, his most recent analysis have been very wrong and misleading.
He has also been involved in some rather petty issues like being friends with economically illiterate people like Cristina Kircher of Argentina. On top of that, he has been involved in an attempt to rip off pharmaceutical companies by short selling their stocks and after that, challenging their patents. For him, it all about the money he pockets and he has total disregard for the millions of people who rely on the drugs and who might suffer in case they stopped being manufactured.