In an interview with Gary Kaminsky and Maria Bartiromo of Fox Business Network’s (FBN) Wall Street Week Friday, Kyle Bass predicted a Chinese market crash similar to the one the US experienced in 2008. Bass assured the interviewers that China wouldn’t have a “Lehman moment,” because the Asian market lacks the interconnection with other markets–as the US had with Europe in 2008—but the Chinese decline will end with the recapitalizing of their banking system, similar to what the US did after 2008.
Bass, Founder and Principal of Hayman Capital Management, has built a sordid reputation since 2008, when he was regarded as a financial luminary by accurately predicting the subprime mortgage crash. This came after his meeting with Bear Sterns in 2006, warning them of the impending disaster. Bass has since built a facade of concern for the consumer in the interest of lining his own pockets.
Bass has ties to Erich Spangenberg–who formed the Coalition for Affordable Drugs–is notorious for shorting pharmaceutical stock and profiting from the sale. In the process, stock prices go down, Spangenberg makes a substantial amount of money, pharmaceutical prices go up while research funding also increases, and consumers bear the brunt of this chicanery.
Bass’ concern for the consumer is just a facade for his desire to increase his bottom line. In his FBN interview, Bass alluded to his ties to Spangenberg, claiming that consumer-friendly prices of pharmaceuticals have increased in the past year. Bass expressed concern for the “divide between the haves and the have-nots,” before going on to say that the US will need to increase personal income taxes and cut corporate tax in order to compete globally.
In addition to his shady Wall Street ties, Bass is currently preoccupied with the Argentine economy, and has defended former president Cristina Fernández de Kirchner’s risky financial moves, including the default on the country’s sovereign debt. Bass has criticized court rulings in the creditor’s favor, saying it’s immoral for creditors to demand countries like Argentina to repay their debts, likening it to a hostage situation.