There has been a lot of speculation about the role Kyle Bass played in the 2008 financial crash that rocked the world of millions of people. Bass was an executive at Bear Stearns, and in 2006, he told partners in the company that there was going to be a sub-prime mortgage crisis. Most of the partners ignored the warning, and the result is still fresh on the minds of people that lost their jobs, homes and retirement accounts. According to a recent Bass interview with BusinessInsider.com, Bass said he knew the market was going to collapse, and he bet it would happen. He was a Dallas-based Bear Stearns manager at the time, and he bet big and won. Bass became a hedge fund genius from that risky move. But according to Bass, the move wasn’t that risky.
Bass also told BusinessInsider.com that he believed Hilary Clinton was the best candidate for president. Bass has been a supporter of Clinton for years, so that wasn’t a surprise. Bass talked about Trump and his edgy campaign. Trump is echoing the thoughts of millions of Americans and Bass thinks those thoughts are valid. But he thinks Trump is the wrong man for the job. Of course, if Trump is elected hedge fund managers like Bass will have a tough time making money in 2017. But Bass also said that the United States isn’t going to feel the effects of the current Chinese economic meltdown. China is on the verge of an economic and financial disaster, according to billionaire and successful investor George Soros, and he says the world is going to follow China into the arms of a monumental recession. Bass disagrees with that assessment. The chances of the United States falling into a recession similar to the 2008 financial crash is only 40 to 50 percent, according to Bass. That remains to be seen, but if history has anything to do with future results, then Soros is more right than Bass.
Kyle Bass has had his fair share of fame and fortune, but he has also been criticized for some of his investment tactics and choices. The General Motors airbag and the power steering issues that cost several people their lives were clearly manufacturing defects. But Bass took General Motors side and said the victims were to blame. Bass owned a huge chunk of General Motors stock at that time. His investment firm, Hayman Capital Management has billions of assets under management and General Motors was one of them. President Cristina Fernández de Kirchner turned Argentina into an economic tragedy and four major hedge funds loss billions because of her ineptness.