The world is on the verge of another economic meltdown. That’s what economists are saying and there’s proof they are right. The European Union is a mess. Italy’s banking system is a disaster. Venezuela and Brazil are in deep recessions, and China is teetering on the edge of a massive financial collapse that could throw the rest of the world into a repeat of the 2008 financial debacle. But Kyle Bass, the founder and CEO of Dallas-based Hayman Capital Management, isn’t convinced the United States is going to be part of the global recession. Bass recently told Businessinsider.com that there is only a 40 t0 50 percent chance the United States will stop growing, economically speaking, the same points echoed on his blog.
Kyle Bass is known for being an outspoken hedge fund manager. Bass likes the attention, and he isn’t afraid to defend his comments. When Bass was asked about the presidential race, he said Clinton was best suited to be president. Trump wasn’t presidential material even though he expresses the views of millions of Americans, according to Bass. Clinton has always been a Wall Street favorite, so the Bass comments were expected.
China was another topic, and Bass had a lot to say about the Chinese. Mr. Bass believes China is experiencing the worst economic downturn in the last 41 years. He also said the Chinese spent trillions of dollars in capital reserves in 2015 to protect their stock market and their currency. That trend can’t continue, and that’s why Bass is betting millions that the yuan will be devalued in 2016. Bass made a similar bet in 2008 when he bet the market was going to crash. In fact, Bass has a history of risky bets.
Hedge fund investors are not the most respected members of the financial world. In an industry filled with questionable transactions and crazy deals, hedge fund managers are at the top of the list when it comes to not playing by the book. Unfortunately, Kyle Bass is known as one of those hedge fund managers that values money over sound business practices. He prove that when he took General Motors side during the power steering and airbag crisis, and once again when Argentina defaulted on their bonds several years ago.