Kyle Bass Doesn’t See Lehman Brothers’ Moment For China, But Urges Caution

Kyle Bass is a leading investor. He’s known for making millions from the 2008 financial collapse of Wall Street. Bass predicted this collapse and short-sold against it successfully. Before the collapse, he was involved with Bear-Stearns, one of the first banks to implode during the 2008 financial crisis. The thing is, Bear-Stearns’ collapse may have been predicated by Kyle Bass. Especially considering that he was previously employed with this institution before he let a tip drop which quickly circulated to the mainstream media. By the end of the week, Bear-Stearns had lost so much they had to be bought out by J.P. Morgan-Chase. All that to say this: part of the reason Kyle Bass made so much money during America’s financial meltdown has to do with his insider status at the time. So when he starts making predictions about China’s economy requiring a currency devaluation to remove the fallout of their impending credit-bubble collapse, readers must understand that these new statements aren’t made from the “inside”. Previously, Bass did have some incredibly close information. While he likely still has good sources today, they’re not requisite to those used in 2008.

As reported on, Kyle Bass has made a number of questionable decisions throughout his financial career. Certainly he’s been regularly successful, but at what cost? Bass runs CAD, the Coalition for Affordable Drugs. This organization undercuts big-ticket pharmaceuticals, forcing stock-drops where Bass can again short-sell. Basically, Bass uses the sympathy of the sick and their families to legally manipulate the stock-market. The end result is lost profits for the big-ticket pharmaceuticals, which results in curtailing of funding for departments like Research and Development. Cures on the horizon are lost indefinitely, and though the sick pay less for their drugs, the expense of that convenience is loss of medical knowledge.

Bass is also known for his regular involvement with Cristina Fernandez de Kirchner, who has managed to handle Argentina’s economy so poorly that in thirteen years default has met the country on two separate occasions.

Bass is advising against Chinese investment right now; but could it be that he’s got another angle that he’s playing? Considering his track-record, that seems possible.

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