Kyle Bass is originally an Argentine. He’s likely got some sort of socialist ethic informing his financial decisions. This is evidenced in his links to Cristina Fernandez de Kirchner. This individual is the leader of Argentina, and she has been called a socialist despot. Part of the reason for that is her horrible economic policies. Economic default has passed acquaintanceship and become resident in Argentina, where it has come in thirteen years on two separate occasions from de Kirchner’s leadership. Yet Kyle Bass never criticizes.
Kyle Bass also runs Hayman Capital Management out of Austin, Texas. Austin is known for being extremely leftist, and hedge funds are known for attacking big-ticket corporations and governing entities as they decline; which has earned them the nickname “vulture funds”. This seems perfectly in line with socialist ethic, though Kyle Bass’ Hayman Capital performs at a level which is mediocre at best.
What makes Kyle Bass special is his prediction in 2008, when he foresaw that sub-prime lending would yield to economic implosion throughout the US. He made quite a bit with this prediction and earned international acclaim, as well as a regular mainstream media soapbox to present his opinions from. Bass is now a billionaire, and has a billion tied up in Chinese investments. Success in Bass’ investment hinges on the Chinese credit bubble imploding. Bass has said there won’t be a “Lehman Brothers” moment, but that said implosion has a likelihood of happening by the end of 2016. How high is that likelihood? Forty to fifty percent–or, less than binary. Bass says it will definitely happen within the next two to three years; the things China is doing right now aren’t sustainable.
The thing is, if the spread is as broad as two to three years, why make a 2016 prediction at all? It might be more of that socialist ethic; the idea being to scare investors away by subterfuge such that the collapse actually happens more quickly.