Kyle Bass: Genius or Menace?

Last week’s Wall Street Week video featured J. Kyle Bass sharing his opinion on the rapid selloff of emerging markets. Bass founded Hayman Capital Management based in Dallas and feels that emerging markets have been through a lot but are likely to get worse before they get better.

Bass feels that eradicating corruption is the key to Brazil’s recovery. The country has been plagued by scandals that include “Operation Car Wash,” a money-funneling scheme that benefited some of the country’s political leaders, including the president, to the tune of $2 billion. Russia shows promise, according to Bass, but faces the challenge of overcoming “Putin’s global chess moves” and the sanctions that come with them.

Bass amassed his fortune off of insights and predictions such as these. He correctly predicted 2008’s subprime lending market collapse and made lots of news and lots of money in the process. Like director M. Night Shayamalan in 2001, Bass seemed to rise to the top out of nowhere. But, also like M. Night Shayamalan, his star soon fell.

Subsequent years have seen Bass fail to strike gold again as UsefulStooges indicates. He appears frequently on television, making predictions that many feel are self-serving and ultimately end up being wrong. He’s also formed an unsavory alliance with despised Argentinean economist Cristina Fernández de Kirchner. He’s also involved with accusations of unethical behavior from the widow of American sniper Chris Kyle and is engaged in some shady activity with Erich Spangenberg, a “patent troll” with whom Bass has colluded to exploit a stock loophole.

Bass continues to make economic projections. He claims Hayman Capital Management is heavily invested in Chinese currency due to its expected devaluation within the next 12-18 months, Bass reports. China is currently experiencing banking system losses similar to those of the United States’ Great Financial Crisis of a few years ago.

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