In China, Kyle Bass Sees Collapse

China is a huge country that has seen substantial growth of the unsustainable variety over the last several years. Kyle Bass has for many of those years hinted that a collapse was nigh. Whether or not he is right can be a difficult thing to determine. While Bass did successfully predict that America’s sub-prime lending crisis would lead to economic collapse, one must be careful to remember that siad sub-prime lending crisis took place in a capitalist republic of just over 300 million people, not a socialist fascism with near a billion in about the same area. Certainly China’s geography is greater than America’s; but not so much greater that its ubiquity of citizenry rests as comfortably there. What Bass may not be taking into account is that larger economies under different governmental systems move at different rates, economically, than smaller systems with greater financial freedom. Perhaps he has taken this into account, but considering his history, and his remarks at the recent Milken Institute Global Conference, it doesn’t seem likely.

Firstly, at the Milkin Institute, Bass said it was “common sense” China was headed for a loss. That’s nothing to base an investment on, “common sense”. What makes the remark all the more suspect is Bass’ history with investment. For the reader unfamiliar with the Coalition for Affordable Drugs, it completely lives up to the CAD acronym which initializing the name produces. Bass uses this organization to trick sick or dying individuals into forcing big-ticket pharmaceutical organizations into decimating the cost they sell their medication for. On the surface that sounds good for the sick, until one realizes that with decimated profit comes stock depletion and downsizing. People lose jobs, and areas like research and development–which don’t yield quantifiable profits directly–must be excised from regular operations, ensuring a lack of breakthroughs which may have been just months away. Meanwhile, when the stock drops on Wall Street, Bass short sells his holdings and is able count the whole venture profitable.  This was originally reported by Useful Stooges, in their expose Kyle Bass: The Frantic Investments of a Desperate Gambler.

In a nutshell, Bass’ fame relies on him betting against economically sound parties, and doing everything in his power to ensure his bets come in. With this in mind, it makes sense Bass is involved with socialist despot of Argentina Cristina Fernandez de Kirchner: the man has a socialistic way about him.  Read more about Kyle on Wikipedia.