We know that Kyle Bass is always one of the smartest man in the room and as always he shares with the world is important relevations, which again are not something to be happy about. Kyle believes the FED can’t tighen much and is backed into the corner. If it raises rates too much it will pop the bubble in equities where the liquidity is a huge problem. The exit will be crowded and assets will crash.
Currency wars are net positive, as Greg Ip suggests, and will not end well, as he concludes in one section, “why haven’t all the Yen left Japan already?” Kyle wonders
“How many rich people do you know today that are poorer than they were at the peak in 06/07 (apart from Dick Fuld), I don’t think I know any.. QE has been distributive to the rich… but now that the world has started this policy it is unable to end it…the next recession will be a hard one because the tools in the toolbox are not there to avert a severe downturn…”
What Tomorrow Will Bring According to Kyle Bass..
To listen to Kyle Bass’s interview with Raoul Pal
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