The Hayman Capital Management is a Dallas-based hedge fund headed by Kyle Bass, who has excellent ability to select tops in economic cycles. He noted China hard landing is on the prospect. Speaking to Fortune at the Iran Sohn investing conference in San Francisco a few days ago, Mr. Bass presented his views on China’s Impeding banking crisis. He ascertained that despite being greater than the 2007-2008 financial crises, the China hard landing would be less impactful to the global economy.
Bass claims China Financial System is Unstable
Bass was asked about China’s foreign reserves; he noted the China’s economy is large, and can spend trillions at an astonishing rate. He highlighted the misconceptions made by many people, who believe the $3.5 trillion rainy day fund can withstand economic upsets. He expounded that China is banking system stood at 41 trillion eight years ago but now it is 184 trillion RMB. He explained his views saying China is an emerging market. He noted it lastly had a loan crisis in 2001 to 2002. He claims that the financial system was growing more than developed markets, which is not supposed to happen. The China’s financial system stands to make further loan losses.
He ascertained China hard landing will experience tough times, but a recession is unlikely. The impact of China hard landing will have an effect on the global economy. He noted that China economy has been driving the global economy, and if it slows down, U.S economy growth will be reduced. However, he noted that U.S has recapped its bank as a measure to curb the effects of the hard landing on its economy. On the issue of whether China will recover its crisis, he said China is endowed with resources, and it can print bonds.
Kyle Bass made global headlines after he correctly predicted the subprime Mortgage crisis in 2008. His script and direction of ‘The Sixth Sense’, earned him a nomination, making him a superstar for a short while. He is a common guest on popular TV shows, and programs. He discusses issues without fear or favor. This media presence seems to be bearing fruits regarding boosting his party time production career. He has ability analyze issues critically with an open mind. He has made alliances with Cristina Fernandez de Kirchner ignoring all the negativity.
He is strategic and goal-oriented; he boosted the General Motors investment by marketing it on TV. He has ventured in the provision of Affordable pharmaceutical drugs to patients. He has collaborated with top-notch pharmaceutical companies hence increasing his market coverage. He practices open and consultative management style that has left employees showering him with praises. He is a social person, approachable by anyone. He has collaborated with famous film producers and actors throughout his career. He was a business partner to the ‘American Sniper’ actor Chris.