Kyle Bass Likes To Bet Big And China’s Currency Is His Target
The smart thing to do is to believe that China plays by the rules and releases the real figures about their financial and economic situations. But some investors don’t trust the Chinese. Not trusting the Chinese comes naturally for Americans. Americans are taught that China is not a friend and should be watched. Meanwhile, the Chinese have been buying American real estate and businesses for the last twenty years. China owns $1.3 trillion of the U.S. debt and billions of dollars’ worth of real estate. Like it or not, China and the United States are joined at the hip. But Hayman Capital’s CEO, Kyle Bass, believes China’s currency is going to fall and fall hard while the U.S. dollar stays strong. Bass is betting billions of dollars that will happen in the next three years. If it does, Hayman Capital investors will make billions and Kyle Bass will make another fortune.
Bass knows how to invest. He’s a former Bear Stearns executive that predicted the demise of the subprime mortgage industry in 2008. Bass and his investors cashed in big while the rest of the country tried to make ends meet. Bass isn’t as popular as he was back in 2008. Bass has burned some important bridges over the last eight years, but he doesn’t care about that. Bass is a money-manic that thrives on the art of the deal no matter the cost. Bass alienated his fellow hedge fund managers because he took Argentina’s side when the country defaulted on the bonds. He took GM’s side when they installed faulty airbags and steering mechanisms in some of their models. And he is playing a risky game with drug companies now by betting against their stock using inside information from patent troll Erich Spangenberg.
The truth is, Bass may be a wealthy hedge fund manager, but his days as an investment wonder boy are over. Even American sniper, Chris Kyles’s widow, has accused Hayman Capital of unethical transactions. The word is out, but Bass isn’t worried. He believes his bet against China is a good one, and it will bring him the recognition he deserves.