Kyle Bass Faults the Chinese Banking System

The Chinese economy has been staring down the barrel in the assessment of many economists and investment experts. In fact, its soaring debt crisis and the dismal performance of Chinese money markets at the turn of the year caused panic all over the world.

The worry is that despite an apparent boom in real estate funded by massive borrowing practice, the Chinese economy could soon find itself in a cycle of loss recession. All the indicators point to a similar situation to that of the global economic meltdown of 2007/08. Kyle Bass, a renowned hedge fund owner, and manager, has expressed his concern at the vulnerability of the Chinese banking system.

Earlier this year, it emerged that Chinese banks had been borrowing from each other at an alarming rate. Facts of economics state that an economy can collapse under its weight and therefore such unsustainable borrowing practice will eventually lead to a crisis. Kyle Bass urged his fellow investors to seek out of the Chinese markets before the system comes crumbling down.

In fact, Bass has warned of write-downs and losses from devaluation in the main Chinese investments. He is even prepared to bet the scenario will play out, a gamble he is likely to win just as Kyle won a similar bet before the global recession eight years ago. Back then, Kyle Bass and his researchers saw a subprime mortgage crisis that precipitated the economic crisis. Bass also anticipated a European debt crisis emanating from Greece a few years ago.

Kyle Bass is an accomplished investment banker from Dallas, Texas. Initially from Florida, Bass moved to Dallas to stay with his father and went on to attend the Teas Christian University. He has worked with some of the best hedge funds in Dallas including Legg Mason and Bear Stearns and rose to the position of Senior Managing Director a couple of years before his 30th birthday. Mr. Bass always knew his entire future was ahead of him and kept dreaming.

Eventually, he went into private practice as the principal owner and founder of Hayman Capital Management. This fund has achieved monumental success under Kyle’s leadership for a decade now. Kyle Bass has clients from all over the world including countries like Argentina and Japan. Mr. Bass also mentors other investors hence his outspoken approach to investment matters. We hope investors will keep an eye on the Chinese situation and hope for the best.  Read more about Kyle Bass and his predictions on the Useful Stooges website:


Hi, guest!