Here's the title to this article, Kyle Bass Shares The "Stunning" Thing A Central Banker Once Told Him. We think you'll find it quite interesting and here's the link to read, as a famous radio host used to say everyday on the air...."the rest of the story." It will tell you something about central banks and the bankers who run them.zerohedge.com/news/2016-07-01/kyle-bass-shares-stunning-thing-central-banker-once-told-him.
If you ever wanted to get a look inside the mind of Kyle Bass, founder and CIO of Hayman Capital Management, here is your chance. In a wide-ranging discussion with Grant Williams, author of Things that Make You Go Hmm and co-founder of Real Vision TV, he shared his thoughts on position-sizing, China, the appeal of holding gold, central banking, interest rates – and much, much more.
Predictably, the one topic that got the most attention was China, where as widely known Bass has made his next "career" wager, expecting a substantial devaluation of the currency, a process which had stalled out in recent months but has once again picked up speed.
Looking at recent data, and specifically something we pointed out two weeks ago, Bass said the country’s $3 trillion corporate bond market is “freezing up” amid rising defaults and canceled debt sales. “We’re starting to see the beginning of the Chinese machine literally break down.”
If you ever wanted to get a look inside the mind of Kyle Bass, founder and CIO of Hayman Capital Management, here is your chance. In a wide-ranging discussion with Grant Williams, author of Things that Make You Go Hmm and co-founder of Real Vision TV, he shared his thoughts on position-sizing, China, the appeal of holding gold, central banking, interest rates – and much, much more.
Predictably, the one topic that got the most attention was China, where as widely known Bass has made his next "career" wager, expecting a substantial devaluation of the currency, a process which had stalled out in recent months but has once again picked up speed.
Looking at recent data, and specifically something we pointed out two weeks ago, Bass said the country’s $3 trillion corporate bond market is “freezing up” amid rising defaults and canceled debt sales. “We’re starting to see the beginning of the Chinese machine literally break down.”
Bass reiterated that China’s
lending binge in recent years is unsustainable and it is only a matter
of time before this bubble, bigger than the US bubble of 2005/2006 which
brought Bass fame and fortune, bursts. He expects bank losses of $3
trillion to trigger a bailout, with the central bank slashing reserve
requirements, cutting the deposit rate to zero and expanding its balance
sheet - all of which will weigh on the yuan, and lead to a dramatic
devaluation.
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