Kyle Bass believes that there is 40-50% chance of a recession in the United States. Bass who is known for predicting financial trends. He is the founder and owner of Hayman Capital Management and made a fortune for himself when he predicted the global financial crisis that occurred between 2007-2008. He earned $ 4 billion by betting against the mortgages. In early 2006, he played a very crucial role in the eventual collapse and close of Bear Stearns. He gave a warning to the top company officials about the firms’ financial stability that was ignored. When he appeared at the Wall Street Week, he indicated that it was him who actually cast doubt in the firms’ balance sheet.
Stories about Bear Stearns leaked and its competitors used this information against it thus damaging its reputation. According to Kyle Bass, Bear Stearns, tried to leverage its balance sheet over 33 times with high risk mortgages. He says that they were either stupid or took the risks knowing the implications of it. The collapse of Bear Stearns led to what was later to be known as the Great Recession. If what was happening in Bear Stearns had not been leaked the firm would have been acquired by JP Morgan. Kyle Bass involvement and role in the collapse and final closure of Bear Stearns was revealed during the Financial Crisis Inquiry Commission investigations and was also made public through its public records.
Despite being described as a genius in predicting the performance of financial markets, he seems to be making wrong career choices. The global financial crisis put him on the mark and people have been watching him closely. Questions have been raised on his career choices. Kyle Bass has recently been on the forefront defending Argentina’s President Cristina Fernandez de Kirchner. It is worth noting that Argentina has been experiencing some financial challenges with its President being accused of defaulting in the country’s debt in the past thirteen years. Kyle Bass says that attacking her is basically holding it hostage bearing in mind it’s a poor country.
He has also initiated campaigns that seek to discredit some drug patents and has lodged complaints at the U.S Patent and Trademark Office. His ties with the late Chris Kyle and the subsequent legal suit against one of employees is a clear indicator of the downward trend of Kyle Bass career choices. It has been said that if his career was to fail eventually, he is likely to find solace in Argentina.