There are many things that are going on in the stock market that has many people worried about their investments and the way things are going worldwide. Kyle Bass who is the Hayman Capital Management Founder recently sat down with the CNBC Halftime Report to discuss the market outlook for 2016 and how China my affect our economy.
Bass believes that the root of China’s problems in the Chinese banking system. He said that it is similar to what happened with the European crisis with the banks outgrowing the GDP very quickly. Unfortunately, according to Bass, we will see a 10-20% downturn by the end of the year. He does not think that this will be as bad as the global financial crisis but the lack of growth is concerning. Marc Lasry who was also on the show with Bass believes that the Chinese banks have lent too much money and that there could be a problem in the future.
With all this, you are probably worried about your stocks and investments but Bass may not be correct. First let’s take a look at who Bass is. He founded Hayman Capital Management in 2006 and it is located in Dallas Texas. He made his fortune with that company and made headlines all throughout the world by predicting the 2008 mortgage crisis. After correctly predicting this crisis, he gained in popularity and was highly regarded in the financial field.
However in recent years, most of Bass’s predictions have been wrong and he has been tied up in several different problems. One of subordinates at Hayman is being accused of severe unethical behavior by Chris Kyle’s widow, and UsefulStooges had a report that backs up Kyle Bass’ character. He has also been tied up in many different controversial and unethical situations that has led many to question whether or not he knows what he is doing. Recently he has been involved in several different pharmaceutical ventures where he has made tons of profit and people needing medication have been left with increasingly high bills for their prescription drugs. When GM’s cars were faulty, he made the statement that the passengers and not the faulty equipment were to blame. Bass also has been praising and working with socialist Cristina Fernadez de Krichner. Argentina’s recent economy and economical outlook has been horrible but he still continues to sing her praises and work with her. Bass has been predicting since 2010 that the Japan stock market will fall and it has not.
As you can see Bass has several issues and is not a soothsayer so his opinion on the Chinese stock market may be completely wrong and his predictions have no basis at the moment. Stock markets fluctuation all the time and the Chinese stock market will continue to fluctuate all the time.